Guide · Payroll
How to run payroll in Singapore, step by step
Running payroll in Singapore means getting gross pay, CPF, deductions, payslips and IRAS reporting right — every cycle. This guide walks through the process so nothing is missed, and shows where the right software removes the manual work.
1. Gather accurate employee data
Start with a clean record for each employee: salary, employment type, start date, bank details and any variable inputs such as approved overtime, claims or unpaid leave for the period. Errors here cascade into the whole run, which is why a single source of truth matters.
2. Calculate gross pay for the period
Work out each employee’s gross pay including basic salary plus any additional wages such as bonuses, commissions or allowances that apply this cycle. Keep Ordinary Wages and Additional Wages distinct — they are treated differently for CPF.
3. Apply CPF and statutory deductions
Calculate employer and employee CPF based on each employee’s age band and the current wage ceilings, then apply any other applicable deductions. This is the most error-prone step when done manually.
- Employer and employee CPF by age band
- Respect the OW and AW ceilings
- Apply any other statutory or agreed deductions
4. Pay employees and issue payslips
Pay net salaries on time and give every employee an itemised payslip — itemised payslips are a requirement for employees covered by the Employment Act. Digital self-service payslips save HR from emailing PDFs each month.
5. Keep records and file with IRAS
Retain payroll records and prepare year-end income reporting for IRAS (IR8A). Doing this from the same data you paid on avoids a separate year-end reconciliation.
Let software do the heavy lifting
Vorkhive runs all of the above from one platform: approved leave, claims and attendance feed gross pay, CPF is calculated automatically, employees self-serve their payslips, and the same data flows into IRAS-ready (IR8A) reporting. Most Singapore teams are live within a day.
Singapore payroll FAQ
What are the steps to run payroll in Singapore?
Gather employee data, calculate gross pay, apply CPF and deductions, pay employees and issue itemised payslips, then keep records and file year-end reporting with IRAS (IR8A).
Are itemised payslips mandatory in Singapore?
Employers must issue itemised payslips to employees covered by the Employment Act. Vorkhive issues digital itemised payslips automatically.
How does Vorkhive simplify payroll?
It feeds approved leave, claims and attendance into gross pay, calculates CPF automatically, lets employees self-serve payslips, and produces IRAS-ready (IR8A) reporting from the same data.