UNIT 5 (Theory) Flashcards
Types of Statutory Benefits (8)
- Annual Leave
- Maternity Leave
- Paternity Leave
- Unpaid Infant Care Leave
- Shared Parental Leave
- Childcare Leave
- Adoption Leave
- Sick Leave
Annual Leave (2)
- Serve his/her employer for at least 3 months
2. First year is entitled to 7 days or more
Maternity Leave (4)
- Serve employer for at least 3 months
- Child is Singaporean
- Child born after 01 January 2017
- Child born before, the mother must be legally married to the father’s child
Shared Parental Leave (3)
- Child is singaporean citizen
- Mother qualifies for government paid maternity leave
- Father is lawfully married to the child’s mother
Unpaid Infant Care Leave (3)
- Both parents to serve employer for 3 months
- Child is Singapore citizen
- The child is below the age of two years
Child Care Leave (4)
- Child is below the age 7 years old
- Child is Singapore citizen
- Parents must serve employer for at least 3 calendar months
- Self employed must be engaged in a particular business, trade or profession for at least 3 months
Adoption Leave (5)
- Adoptive child must be singaporean citizen
- If child is foreigner, one of the adoptive parent must be Singapore citizen
- Parents must serve employer or been self employed for at least 3 months
- Adopted child must be below the age of 12 months at the point of formal intent to adopt
- Adoption order must be passed within 1 year from the formal intent to adopt
Entitled to Sick Leave (3)
- Has served an employer for at least 3 months
- Is covered under employment act
- He/She informed or tried to informed the employer within 48 hours of his/her absence
Types of Non-Statutory Benefits (8)
- Compassionate Leave
- Marriage Leave
- Examination Leave
- Incentive Trips
- Healthcare Benefits
- Insurance
- Memberships
- Pay Diem Payment
Key components of Salary (11)
- Ordinary Wages
- Additional Wages
- Total Earnings
- Gross Rate of Pay
- Basic Rate
- CPF Contributions
- Allowances
- Overtime
- Leave Pay
- Payment in lieu
- National Service Pay
Total Wages/Total Earnings
Sum of employee’s ordinary wages and additional wages paid to him/her in that month
Allowances
A sum given regularly to employer for a specific purpose
Overtime Pay
Pay earned in excess in the normal working hours of the employee
Leave Pay
Employee are entitled to leave pay if they have worked for the employer for at least 3 months
Every employee leave entitlement depends on how many years of service they have with the employer
National Service Pay
Operationally Ready National Servicemen undergo NS training he will receive service pay for the entire period
If he suffers a loss in his civilian income, he can claim make-up pay
Types and Purposes of Claims
- Overtime Pay
- Medical
- Transport
- Entertainment
Three types of Medical
- Work Injury Compensation Act
- Medical
- Dental
When is WICA payable
- An injury by an accident arising out and in the course of employment
- Contracted an occupation disease
- Contracted a disease due to work-related exposure to biological or chemical agents
Medical
Submit outpatient medical claims up to a specified limit per calendar year for visits to clinic from government or recognised clinics by the company
Dental
Submit claims up to a specified limit per calendar year for visits to clinic for dental treatment
Who are the parties covered under Employment Act
- Local and Foreign Employees
2. Employees under Full-Time, Temporary and Contract Terms
Who is not covered under Employment Act
- Seafarer
- Domestic Worker
- Statutory Board Employee/Civil Servant
Who is Workman
- Does manual work
- Operates and Maintain Commercial Vehicles with passengers
- Supervises and Perform Manual Works
- Has a job namely in Cleaner, Bus Lorry etc
Define Hours of Work
- A continuous period of 7 days starting from Monday and ending on Sunday
- Period in which employees are expected to carry out their duties assigned by their employers
Define Break Times
- Employees are not required to work for 6 hours without break
- If required to work 8 hours, a break should be at least 45 minutes long
Common Work Arrangements
- 5 days or less a week
Up to 9 hours per day or 44 hours per week - More than 5 days a week
Up to 8 hours a day or 44 hours a week
Other Work Arrangements
- Less than 44 hours a week
Up to 48 hours a week capped at 88 hours in a 2 week period - Shifts of up to 12 hours a day
Up to average 44 hours over a continuous 3-week period
If the employee is not shift worker but agrees to work up 12 hours a day he/she must:
- Give his/her consent in writing
- Have provisions of section 38 and 40 of the employment act explained to him/her
- Be informed of his/her daily working hours
An employee can claim overtime if he/she is:
- A non workman earning up to $2600
2. A workman earning up to $4500
The overtime payable
- Capped at $2600
2. Hourly rate of $13.60
Employer can only ask employee to work overtime when
- An accident or threat of accident
- Work that is essential to the life of the community, national defence or security
- An interruption of work that is impossible to foresee
- Urgent work to be done
Maximum hours of work (overtime)
Not allowed to work more than 12 hours a week, if requires to work more than 12 hours they must apply for an overtime exemption
Maximum Hours of Overtime
An employee can only work 72 hours in a month
How to determine rest days?
- An employer will determine its rest day usually Sunday or any other day of the week
- IF not on Sunday, employer should prepare a monthly roster to inform before the start of each month
- The Maximum interval allowed between 2 rest days is 12 days
- For shift workers it can be continuous period of 30 hours
if employee public holidays fall on rest day, Saturday or non working day
- Falls on a non working day entitled to another day off or one extra day salary
- For public holiday that falls on a Saturday, he/she should get either a day off or salary in lieu
- For public holiday that falls on his/her rest day, the following working day will be a paid public holiday
*Employee IS entitled to 11 paid public holidays
The different scenario when working on a public holiday
- A Working day
- A Non Working Day (for 5 days work week)
- A Rest Day
If you work on a working day during public holiday (2)
- An extra day salary of the BASIC RATE OF PAY
2. Overtime pay beyond your normal working hours
If you work on a non-working day during public holiday (2)
- Overtime pay
2. One day extra at the GROSS RATE OF PAY
If you work on a Rest Day during public holiday (3)
- Payment for work done on a rest day
- Overtime pay
- Next working day will be a paid holiday
Paid Outpatient Sick Leave
Must be certified to be unfit for work by a medical practitioner registered under the Medical Registration Act or Dental Registration Act
When a doctor deems an employee requires hospital care (Paid Hospitalisation Leave)
- Warded or underwent day surgery
- Requires a bed rest (pregnancy-related complications)
- Requires rest or medical treatment
To qualify for paid hospitalisation leave
- Warded in a hospital as in patient or a day surgery
- Quarantined under any written law
- Certified by a medical practitioner who can admit patients into approved hospital
Entitlement for Paid Hospitalisation leave and Paid Outpatient Sick Leave
- 14 days for paid outpatient sick leave
- 60 days for paid hospitalisation leave
- If work for the employer for more than 6 months, can receive full entitlement
Employee Compensation and Benefit in the EMPLOYMENT ACT (6)
- Salary and Wages
- Allowances
- Bonuses or Incentives
- Competency Based Progression
- Long Service Awards
- Leave
Bonuses or Incentives
Any form of variable payment tied to performance
Competency Based Progression
An employee completes a progression point may be entitled to a wage increase
Leave
An employee is entitled to leave if he/she served the employer for 3 months
Long Service Awards
Commemorates long term commitment and loyalty of any employee who have achieved significant milestone years of service
Compassionate Leave
- Enable employee to attend funeral
2. Company usually practice 2-3 compassionate leave
Examination Leave
Those who enrolled in school or working in a field that requires exam
Marriage Leave
Marriage leave depends are discretion/choice of the employer
Paid days off are usually 3 days
Healthcare benefits
- Outpatient or inpatient care
- Maternity and fertility coverage, vision and dental insurance
- Health checks and immunisations
Incentive trips
To those who achieved certain requirements by the company
Insurance
Group Medical and Hospitalisation which covers surgical, specialist charges
Memberships
Golf memberships to entertain high-net worth clients
Pay Per Diem
Daily allowance given to employee on overseas trip
Process required to process benefits
- Before sending out the employment contract or appointment letter, HR needs to confirm the benefits eligibility against operational policy
- To ensure that new hire is offered the correct benefit package
Payment of Salary in Singapore Context: Overtime work
Within 14 days after the end of the salary period
Payment of Salary in Singapore Context: Dismissal/Termination
Last day of employment or within 3 days from the date of dismissal
Payment of Salary in Singapore Context: Resignation
Last day of employment or within 7 days
Steps/Process for PAYROLL PREPARATION (7)
- Update the Employee Master File
- Compute Timekeeping Data including Overtime Pay
- Check for other types of income
- Generate and Review Report
- Issue Payment
- Generate Payslips
- Generate Report and Make payment to fulfil statutory obligation
Update the Employee Master File (2)
- Make changes to payroll record if needed
2. To also enter new hire information if hired in during pay period
Compute Timekeeping Data Including Overtime Pay
Compute the number of hours and enter the hours into the payroll system
Check for other incomes
Ensure that other income such as pay raise or bonus are included in the correct pay period
Generate and Review Report
Allow HR to verify the payroll before the direct deposit and payslips are generated
Issue Payments
Either through issuing cheque or uploaded to the bank
Generate Payslips (2)
- Must be given once a month atleast within 3 days from day of payment
- In case of termination, payslip must be given together with outstanding salary
Generate Report and make Payment to fulfil statutory obligation
- Prepare CPF contribution report and process CPF payment upon approval from HR manager
- Preparing employees IR8A for income tax reporting
Procedures to Process Claims (8)/ SOPs to process claims
- Type of claim is confirmed
- Source Documents to process claim is assemble in proper order and authentic
- Claims for processing are sorted correctly
- Claims are classified accordance with organisational requirements
- Claims eligibility of claimant is verified
- Claims are processed in accordance with timeframe
- Claim summary report is prepared for approval
- Confidentiality of information is maintained at all times
Type of Claim is classified
Identify whether the claim involved legal actions or just common employee claim
Source documents to process claim is assemble in proper order and authentic
If there is any missing documents, HR assistant must chase for the document
Claims for processing are sorted correctly
Staff got to ensure that sorting is done correctly to ensure smooth processing
Claims are classified accordance with organisational requirements
To be classified accordance with organisational requirements to ensure meaningful reporting
Claims eligibility of claimant is verified
The claim processing officer can verify the eligibility against their employment letter
Claims are processed in accordance with timeframe (2)
- Employees are expected to submit claims within 7 days to 21 days
- HR department are expected to process claims within 14 days to 30 days
Claim summary report is prepared for approval
The claim processing staff will generate a report call claim summary report
Confidentiality of information is maintained at all times
Regardless of the role and position, it is to ensure to maintain confidentiality of information
