Gross to net Payroll Engine Singapore

Payroll processing in Singapore demands precision, data security, and full compliance with regulatory frameworks such as the Central Provident Fund (CPF), Skills Development Levy (SDL), and the Inland Revenue Authority of Singapore (IRAS) tax structures. G2N Nova is designed to address these needs through a fully native, unified platform that delivers accurate gross-to-net payroll calculations in real time.

What distinguishes G2N Nova is its ability to operate without storing or accessing employee-identifiable information. All payroll calculations are performed securely within the client’s environment, supporting compliance with Singapore’s Personal Data Protection Act (PDPA) and global data privacy standards.

Built for both domestic and multinational organizations, G2N Nova offers:

• Accurate gross-to-net computations aligned with Singapore-specific tax and statutory requirements
• Integration with any HCM, ERP, or WFM systems without disrupting existing infrastructure
• Scalable architecture capable of managing payroll across multiple countries while honoring local compliance rules
• Secure, compliant payroll processing without manual intervention or data extraction
  

For organizations seeking a secure, compliant, and efficient payroll solution tailored to Singapore’s regulatory environment, G2N Nova delivers a proven alternative to traditional payroll platforms.

To learn more about how the Gross to Net Engine Singapore businesses trust can support your payroll operations, contact us for a demo.

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Gross to net payroll tax engine for Singapore

Looking for the latest payroll tax updates in Singapore?
G2N’s Payroll Tax Engine Singapore is a cloud-based solution designed to deliver real-time, automated updates in line with Singapore’s evolving tax and statutory requirements. The engine integrates seamlessly with your existing payroll data, ensuring accurate calculations across all pay periods.

• Continue using your existing HCM, ERP, or WFM systems without the need to change payroll providers.
• Partner with a provider offering a plug-and-play solution dedicated to up-to-date payroll tax compliance.

Solutions

1. HCM/ERP/WFM Systems: G2N integrates effortlessly with all major HCM, ERP, Time, Pay, and Attendance systems, allowing organizations to continue using their existing infrastructure without disruption.
2. System Integrators: G2N enables system integrators to easily add cross-border payroll functionality to their platforms. This simplifies international payroll management while giving integrators full control over the user experience, ensuring tailored and seamless payroll solutions for their clients.
3. Enterprises: Simplify your payroll management with G2N’s unified platform. Eliminate processing headaches, free up valuable time to grow your business, enhance your products, or finally take that much-needed vacation!
4. SMEs: Built for flexibility and growth, G2N scales effortlessly to accommodate your expanding workforce and evolving compliance needs. From 1 to 120,000 records, G2N ensures accurate real-time gross-to-net payroll processing, making it the perfect solution for small and medium-sized businesses.
5. Service Providers: Focus on what matters most to your clients and your business with G2N’s seamless payroll processing platform, trusted by leading Fortune Global 500 companies.

How It Works

G2N Nova delivers a comprehensive payroll engine tailored to the unique regulatory and operational requirements of Singapore. By managing the entire payroll lifecycle from input to output, it ensures high accuracy, transparency, and seamless compliance.

Input

•  Employee Data: Captures key payroll inputs including salaries, benefits, and other employee-specific information.
• Leave Management: Tracks and incorporates employee leave, absences, and time-off into payroll.
• Time & Attendance: Records working hours, overtime, and attendance to support compliant, activity-based payroll calculations.

Processing

•  Local Statutory Filing: Ensures accurate reporting and submission to Singaporean authorities such as CPF, IRAS, and MOM.
• Regulatory Compliance: Maintains up-to-date alignment with local payroll laws, backed by G2N’s in-house compliance expertise.
• Gross-to-Net Computation: Accurately calculates take-home pay and statutory deductions in real time for every employee.

Output

•  General Ledger Integration: Provides financial postings for reconciliation and internal accounting.
• Treasury Reports: Delivers insights to support payroll-related cash flow planning.
• Bank Files: Generates compliant files for direct deposit and disbursement.
• Payslips: Issues detailed payslips with a clear breakdown of salary, taxes, and contributions.

G2N Nova’s platform is built for adaptability and scale—making it the ideal payroll engine for businesses operating in Singapore and across multiple jurisdictions. It integrates effortlessly with existing systems, delivering a secure and efficient payroll experience from start to finish.

Features of G2N Payroll Engine Singapore

Benefits

Efficient Payroll Processing

Achieve fast and accurate payroll execution fully aligned with Singapore’s tax rules, CPF obligations, and employment laws.

Integrated System Compatibility

Designed to integrate effortlessly with existing HR and payroll software used in Singapore, reducing friction and eliminating duplication.

Automated Data Handling

Eliminates the need for manual data entry by automating extraction and processing, improving accuracy and saving time.

Global Payroll Scalability

Supports multi-country payroll while ensuring full compliance with Singapore’s local regulatory requirements.

Secure and Compliant Payroll Infrastructure

G2N’s payroll tax engine Singapore enables a secure and compliant payroll operation, optimized for both local businesses and global enterprises.

Everything you need to know about Gross to Net Calculation in Singapore

Calculating gross-to-net salary in Singapore involves more than just basic pay. Various employee-specific factors—such as residency status, age, income range, and contributions to self-help groups—affect the final take-home pay. These variables ensure compliance with Singapore’s tax and CPF (Central Provident Fund) framework.

The G2N Payroll Tax Engine Singapore is built to handle these complexities with precision, allowing employers to compute salary accurately and in real time, no matter how detailed the employee scenario may be.

Key Employee Scenarios Considered in Gross-to-Net Salary Calculations

Each of the following situations represents unique conditions under which gross-to-net salary must be calculated. These include different combinations of residency year, employee age, income level, self-help group (SHG) affiliation, and additional factors such as employment changes, allowances, or exemptions.

Third-Year Resident Scenarios:

• EE < 50 | Income > $750 | CDAC SHG
• EE < 60 | $500 < Income < $750 | CDAC SHG | Community Chest
• EE < 65 | $50 < Income < $500 | CDAC SHG | Disability
• EE < 70 | Income > $750 | CDAC SHG | SDL Exempt
• EE > 70 | Income > $750 | CDAC SHG | Additional SHG Contribution
  

Second-Year Resident – Full Contribution Rates:

• EE < 50 | Income > $750 | ECF SHG | Mid-Month Starter
• EE < 60 | $500 < Income < $750 | ECF SHG | Mid-Month Leaver | Termination Benefits
• EE < 65 | $50 < Income < $500 | ECF SHG | Gross-Up
• EE < 70 | Income > $750 | ECF SHG | Long Service
• EE > 70 | Income > $750 | ECF SHG | Long Service
  

Second-Year Resident – Graduated Contribution Rates:

• EE < 50 | Income > $750 | MBMF SHG | Change in Residency Status & SHG
• EE < 60 | $500 < Income < $750 | MBMF SHG | Contract Type Change
• EE < 65 | $50 < Income < $500 | MBMF SHG | Festive Allowance | Referral Bonus
• EE > 65 | $50 < Income < $500 | MBMF SHG | Work Injury | Maternity Compensation
  

First-Year Resident – Full Contribution Rates:

• EE < 50 | Income > $750 | SINDA SHG | Retroactive Calculations
• EE < 60 | $500 < Income < $750 | SINDA SHG
• EE < 65 | $50 < Income < $500 | SINDA SHG
• EE < 70 | Income > $750 | SINDA SHG
• EE > 70 | Income > $750 | SINDA SHG
  

First-Year Resident – Graduated Contribution Rates:

• EE < 50 | Income > $750 | SINDA SHG
• EE < 60 | $500 < Income < $750 | SINDA SHG
• EE < 65 | $50 < Income < $500 | SINDA SHG
• EE > 65 | $50 < Income < $500 | SINDA SHG
  

Expatriates and Foreign Workers:

• Subject to Foreign Worker Levy (FWL) based on sector and skill level
  

By incorporating all these combinations, the G2N Payroll Tax Engine Singapore simplifies complex payroll scenarios, ensuring full compliance and transparency. It also acts as a reliable payroll calculator Singapore businesses can trust for real-time, accurate gross-to-net outcomes.

Income

• Employment Income: Include your total gross employment income from the previous year. This includes basic salary, bonuses, fixed allowances, and non-cash benefits (benefits-in-kind). Do not deduct any CPF contributions at this stage.
• Deductible Employment Expenses: List any allowable employment-related expenses that can be claimed as deductions under Singapore tax regulations.
• Trade, Business, or Professional Income: Declare any income earned from self-employment, running a business, or providing freelance/professional services over the past year.
• Dividends: Enter dividend income received during the year. Most locally sourced dividends are exempt, but some foreign-sourced ones may be taxable.
• Interest Income: Only include interest income if it is earned from sources not covered under approved Singapore banks or licensed finance companies.
• Rental Income: Enter your net rental income (rental revenue minus allowable property expenses) earned from leasing property in Singapore or overseas.
• Royalties, Charges, or Trust/Estate Income: Report any income received from royalties, license fees, estate distributions, or trusts.
• Other Income of a Taxable Nature: Include any other taxable gains or profits that do not fall into the categories above, such as windfall payments or special incentives.
• Approved Charitable Donations: List total donations made to Institutions of Public Character (IPC). These qualify for a 2.5x tax deduction. For instance, a $100 donation grants a $250 deduction.

Personal Reliefs in Singapore

When calculating your taxable income, the G2N Payroll Engine Singapore helps incorporate the various reliefs you may be eligible for, which can reduce your taxable income significantly. Below are the personal reliefs that can be claimed under Singapore’s tax system:

Earned Income Relief

You are entitled to Earned Income Relief based on your age and earned income level. The relief amount is calculated as the lower of the following:

• Under 55: $1,000
• 55 to 59: $6,000
• 60 and above: $8,000

For handicapped persons, the maximum earned income relief is higher:

• Under 55: $4,000
• 55 to 59: $10,000
• 60 and above: $12,000

Spouse/Handicapped Spouse Relief

You can claim spouse relief of $2,000 or handicapped spouse relief of $5,500, provided your spouse’s income does not exceed $4,000 in the previous year.If you paid alimony or maintenance to an ex-spouse or handicapped ex-spouse, you may be eligible to claim up to:

• Alimony/maintenance paid to ex-wife: $2,000
• Alimony/maintenance paid to handicapped ex-wife: $3,500

Child Reliefs

• Qualifying Child Relief (QCR): Claim $4,000 per child under Qualifying Child Relief (QCR)
• Handicapped Child Relief (HCR): Claim $7,500 per handicapped child.
• Working Mother’s Child Relief (WMCR): Working mothers can claim relief based on the number of children, with percentages of the mother’s earned income as follows:
  • 1st child: 15%
  • 2nd child: 20%
  • 3rd child and beyond: 25%

The cumulative relief across all children is capped at 100% of the mother’s earned income, with a cap of $50,000 per child.

Parent/Handicapped Parent Relief

Claim parent relief or handicapped parent relief for up to 2 dependants:

• Staying with you:
  • Parent relief: $9,000
  • Handicapped parent relief: $14,000
• Not staying with you:
  • Parent relief: $5,500
  • Handicapped parent relief: $10,000

Life Insurance Relief

If you have no CPF contribution, you can claim up to $5,000 in life insurance relief. If you have CPF contributions, claim the difference between the life insurance cap of $5,000 and your CPF contribution. For instance:

• If you contributed $3,000 to CPF, you can claim $2,000 in life insurance relief.
  

Course Fees Relief

You can claim up to $5,500 for course fees if you meet the qualifying conditions.

Foreign Maid Levy Relief

If you paid the foreign domestic worker levy in the previous year, you are eligible for double the levy amount, subject to the following caps:

• Concessionary FML ($170 per month): $3,080
• Non-concessionary FML ($265 per month): $6,360
  

CPF Cash Top-Up Relief

You can claim relief for cash top-ups made to your CPF account or the accounts of your immediate family members (parents, grandparents, spouse, or siblings):

• Maximum Relief for your own minimum sum: $7,000
• Top-ups for family members: $7,000
  

Supplementary Retirement Scheme (SRS) Relief

Contributions to the Supplementary Retirement Scheme (SRS) can be claimed up to the following limits:

• Singaporeans/Singapore Permanent Residents: $12,750
• Foreigners: $29,750
  

NSman Relief

If you or your son/spouse are National Servicemen (NSmen), you can claim relief as follows:

For NSman (Self)

• Non-KAH (No in-camp training): $1,500
• Non-KAH (Attended in-camp training): $3,000
• KAH (No in-camp training): $3,500
• KAH (Attended in-camp training): $5,000
  

For NSman (Family)

Claim $750 if your son(s) or husband are NSmen.