Itemised payslips to employees to be made mandatory

SINGAPORE — The authorities are seeking further revisions to the Employment Act, 15 months after the last round of changes.

Tabled in Parliament today (July 13), the proposed amendments will make it mandatory for employers to give their workers payslips, electronic or otherwise. Key employment terms (KETs) must also be made known within 14 days of employment.

“Itemised payslips and KETs benefit both employees and employers. They provide security and assurance to employees about their regular salary components as well as main employment terms and benefits. For employers, issuing payslips and KETs in writing helps to minimise employment disputes,” said the Ministry of Manpower (MOM).

Plans to implement these changes were announced by the MOM last year, and since then, the tripartite partners have issued guidelines to promote these practices. Apart from these, employers will also have to maintain records of all past and present workers.

Any breaches will be regarded as a civil contravention, and offenders will be liable to a fine of up to S$1,000 on the first occasion and up to S$2,000 on subsequent occasions.

The proposed changes will also grant the acting Manpower Minister enhanced powers to issue penalties for any breaches of the Employment Act. The minister could mete out a fine of up to S$5,000 for a first conviction and up to S$10,000 for subsequent convictions, provided the offender flouts the same provision within a year.

Itemised payslips were not made mandatory during the previous round of amendments to the Employment Act, after small and medium enterprises (SMEs) raised concerns over additional administrative costs.

Acknowledging that SMEs may need more time and assistance to comply with the new regulations, the ministry has pledged an initial light touch and an educational approach to help them make the transition.

The latest updates to the Employment Act are slated to launch in the first half of next year. Earlier changes, which took effect in April last year, offered professionals, managers and executives earning up to S$4,500 more legal protection in areas such as unfair dismissal and medical leave benefits.