Singapore Payroll Foundation Pre-Test (2024)

What is the main employment law in Singapore?

• 
  Employment Act of 1968

• 
  Labor Law (1968)

• Employment Act of 1972

Who is not covered by the Employment Act?

• 
  Contractual workers

• 
  Statutory board employees

• 
  Managers and executives

Answer explanation

The Employment Act (EA) covers all local and foreign employees including full-time, part-time, temporary, and contractual employees. There was a time when the Employment Act did not cover managers and executives earning above SGD 4500. However, that was changed in 2019 so the only exemptions to EA are seafarers, domestic workers, and statutory board employees or civil servants.

The employment agreement between an employer and an employee is called ________.

• 
  Contract for service

• Contract of service

• Employment contract

Answer explanation

Contract of service is between employer and employees; contract for service is for independent contractors/ freelancers and their clients

Singapore has a minimum wage.

• True

• False

Answer explanation

The Singapore government does not believe in setting a minimum wage. Rather than set a minimum benchmark, Singapore embraces a Progressive Wage Model (PWM) where workers are encouraged to move up a “ladder” of increasing wages, by acquiring more skills or taking on more responsibilities.

A foreign worker working in Singapore needs an Employment Pass.

• True

• False

Answer explanation

There are different kinds of foreign passes depending on the qualification and income earned in Singapore (i.e. Employment pass, S-pass, work permit). Employment pass is just one of the many passes.

What is the maximum working hours per week in Singapore?

• 40

• 44

• 48

Answer explanation

There are different working days in a week in Singapore (5 days/ week, 5.5 days/ week, 6 days/ week) but the EA states that the maximum should be 44 hours per week

What is the difference between rest day and off-day?

• Rest day is Sunday, off-day is Saturday.

• Rest day is not paid, off-day is paid.

• It is illegal to work on a rest day, but it is legal to work on an off day.

Answer explanation

Employers are required to provide employees with at least one rest day. It is not a paid day and employers cannot compel employees to work on a rest day, unless under exceptional circumstances.

This distinction between rest days and off-days is significant because overtime pay for rest days and off-days are computed differently.

What is MBMF? (Choose all the correct answers)

• Mosque Building & Mendaki Fund

• Muslim Brotherhood & Malay Fund

• A fund working Muslims in Singapore contribute to regardless of race and nationality.

In SIngapore Payroll, what do we mean by SHARE?

• A monthly giving programme of Community Chest, the fund-raising and engagement arm of the National Council of Social Service.

• Social Help and Assistance Raised by Employees

• Singaporeans Helping and Assisting to Raise Engagement

Answer explanation

SHARE is a monthly giving programme of Community Chest, the fund-raising and engagement arm of the National Council of Social Service. On behalf of Community Chest, the CPF Board collects employee’s donations to SHARE from employee’s wages made through the company payroll.

Donations by employees are voluntary and deducted from their wages. 100% of the donations are channelled directly to support critical social service programmes

Which levy does an employer pay for all of his employees?

• SWL

• SDL

• FWL

Answer explanation

The SDL (Skills Development Levy) is a compulsory levy that you have to pay for all your employees, including foreign employees, working in Singapore. This is in addition to your monthly CPF contributions. CPF Board collects SDL on behalf of the SkillsFuture Singapore Agency (SSG).