In Singapore, payroll has evolved beyond simple salary processing. In 2025, it demands precision, agility, and a proactive approach to compliance amid an ever-changing regulatory landscape.
From rising CPF ceilings to the introduction of the Corporate Service Providers (CSP) Act, Singaporean businesses face new challenges and opportunities in payroll management.
The smallest misstep can trigger penalties, audits, or damage to employee trust. To help you navigate these complexities, here’s a five-point payroll compliance checklist every HR and finance leader needs in 2025.
1. CPF Ceilings Are Climbing. Are Your Systems Keeping Pace?
The Central Provident Fund (CPF) Ordinary Wage ceiling increased to SGD 7,400 in January 2025, with a further rise to SGD 8,000 expected in 2026. Contribution rates for employees aged 55 to 65 have also been revised.
This means payroll teams must recalibrate calculations carefully to avoid compliance risks.
Manual updates are no longer practical. Businesses benefit from payroll platforms that automatically apply CPF ceiling changes and contribution rates, reducing human error and saving time.
Learn more about CPF changes on the CPF Board website.
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2. Payslip Accuracy and Timely Salary Payments Are Mandatory
According to Singapore’s Employment Act, salaries must be paid at least once a month, no later than seven days after the pay period ends. Payslips should itemize salary components, CPF contributions, and deductions clearly.
Failure to comply can lead to legal penalties and harm employee relations.
Automated payroll solutions ensure payslip accuracy and timely payments, supporting compliance and transparency.
Details on payslip requirements can be found at Ministry of Manpower.
3. Don’t Overlook SDL and IRAS Reporting Deadlines
The Skills Development Levy (SDL), fixed at 0.25% of gross monthly salary, along with timely submissions under the IRAS Auto-Inclusion Scheme (AIS), are statutory requirements often underestimated.
Additionally, Form IR21 must be filed one month before foreign employee exit.
Missed deadlines can result in fines and audit complications.
Integrated payroll platforms that automate SDL calculations and IRAS filing reminders help businesses stay audit-ready.
For details on SDL and tax filing, visit the Inland Revenue Authority of Singapore (IRAS).
4. The CSP Act Tightens Vendor Compliance Standards
Effective June 2025, the Corporate Service Providers (CSP) Act requires payroll vendors to:
- Register with ACRA
- Comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations
- Maintain transparent and auditable systems
Businesses must ensure their payroll vendors meet these standards to avoid compliance exposure.
Learn more about the CSP Act at Accounting and Corporate Regulatory Authority (ACRA).
5. Manual Processes Can’t Keep Up with Regulatory Change
Singapore’s payroll landscape changes frequently, from tax codes to labor regulations.
Using spreadsheets or outdated systems makes real-time compliance and audit readiness difficult.
Leading payroll platforms incorporate real-time regulatory monitoring, automatically applying legislative changes and providing alerts. This frees HR teams to focus on strategic goals.
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Why Neeyamo Is the Payroll Partner for Singapore’s Compliance Future
Managing these evolving payroll regulations requires more than basic software. It demands a partner with local expertise and cutting-edge technology.
Neeyamo’s cloud-native payroll platform offers seamless automation combined with a GenAI-powered compliance engine that continuously monitors regulatory updates and adjusts payroll calculations accordingly.
This proactive system sends tailored alerts to HR and finance teams before risks arise, transforming compliance from a reactive task to a strategic advantage.
Explore Neeyamo’s solutions and see it in action by booking a Neeyamo Payroll Demo.
Closing Thought
Payroll compliance in 2025 isn’t just about mitigating risk. It’s about unlocking business agility and building trust through intelligent automation.
Platforms like Neeyamo, powered by GenAI compliance monitoring, are redefining how businesses stay ahead, ensuring payroll is accurate, timely, and fully compliant every time.
Stay abreast of the latest payroll compliance developments by visiting the Neeyamo Global Payroll Guide for Singapore.
With Neeyamo, compliance isn’t just a requirement. It’s your competitive edge. Reach out to us at irene.jones@neeyamo.com to know more!
