MOM’s Payslip Format: Detailed Information
A payslip is a crucial document every employer should generate to his or her employees. However, the age of generating physical payslips wasting ink and paper is long gone. And the world is embracing the ePayslip fast. In the year 2016, the Ministry of Manpower (MoM) of Singapore also welcomed the new concept of eSlips with the new rules and standards.
Singapore Ministry of Manpower or MoM has formed a new rule for generating payslips to employees of small and medium-sized businesses based in Singapore.
An ePayslip is Mandatory
The Singaporean government issued the new law by the employee act in 2016. The new law makes it is mandatory to release an ePayslips for all the employees work in an organization. The bill also clearly state the details the new payslip should include. The new rule aims to make sure that all the employee details are adequately maintained. Thus authorities have accurate information to have access to anytime when there are any issues arise.
Government receives accurate employee details.
With the new rule, the government will be able to receive clear information on each employee of the organization. From the number of employees, their salary details to the organization’s contribution to Provident Fund (CPF), the rule gives clear reports to the authorities.
Companies need to adopt a payroll system
To comply with the new MoM’s rule regarding ePayslip, a payroll system becomes a must-have software solution for all businesses. Luckily for all the organizations that are already using payroll systems, they won’t experience any hassle complying with the new rule. All it requires is some additional data to make sure their ePayslips are to the format given- And they are good to go.
Key Employment Terms (KETs) are mandatory
In the act, it mentions that it’s mandatory to provide Key Employment Terms in writing. This is to minimize employment disrepute.
With this employer and employee will have to have their mutual terms in the paper and sign it, thus ensuring complete understanding between the parties.
Penalty for not complying
The Ministry of Manpower (MoM) of Singapore will impose a hefty fine on employers who do not comply with the new law. Thus it’s always wise to make the necessary adjustments in your organization to efficiently generate ePayslips as per the new format of the employment act.
Help from the government
Implementing an ERP system costs a large sum of money. Plus, it takes a lot of planning to make it a success. Considering the implementation cost for a payroll system in the country, the government has given SME’s ability to generate payslips from the government MoM website. The MoM also conducts seminars and workshops for businesses to educate them and help them understand the new rule and how to make sure you are complying with it.
A cloud-based payroll solution is the best
Although it is not required to have all the details in digital form for this, digitally storing payroll data of the organization can benefit you significantly. It will reduce a lot of work of the HRM as all the data and records are available online to the management. Thus a cloud-based payroll software can save you a lot of hassle during the process.
