Payslip rule weighs heavily on SMEs

Payslip rule weighs heavily on SMEs

SINGAPORE - The tiny payslip is creating a storm among the small and medium- sized enterprises (SMEs) here.

While the authorities are insisting that firms issue the flimsy salary note to their workers, some employers are not keen.

At a closed-door dialogue last month, the Ministry of Manpower (MOM) told SME bosses that they have to comply with the rule from next April. The requirement was first announced in March without a commencement date.

"The meeting got some (firms) worried because we will not be able to meet MOM's requirement to itemise the payslip," a source told The Straits Times.

Seven out of 10 SMEs interviewed are worried that the move will add to business costs and manpower shortage woes.

Although nine said that they already issue monthly payslips to their workers, some noted that these are just simple stubs which show basic information such as the salary and Central Provident Fund (CPF) deduction.

Experts said a good payslip should include breakdowns such as basic salary, overtime pay, allowances, bonuses as well as deductions like CPF contributions and approved donations.

Mr Teo Ah, honorary secretary of the Singapore School and Private Hire Bus Owners' Association, said bus owners who hire ad hoc drivers will have problems.

"These are not permanent employees and they are paid daily on the day they finish work, so it is administratively difficult to give them payslips," he said.

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