Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. Key areas: salary and bonus payment regulations, mandatory itemized payslips requirements, payment timelines and methods for additional wages.
Income Tax Act: Legislation governing taxation of employment income including bonuses. Covers tax implications of bonus payments, reporting requirements, and CPF contributions considerations.
Central Provident Fund Act: Legislation governing mandatory social security savings system. Specifically covers CPF contribution requirements for bonuses, maximum contribution limits, and computation rules for additional wages.
MOM Guidelines: Ministry of Manpower guidelines covering wage and bonus payments, best practices for documentation, and record-keeping requirements for employment-related matters.
Personal Data Protection Act (PDPA): Legislation governing the collection, use, and disclosure of personal data. Relevant for handling employee personal information, consent requirements, and data protection obligations.
Employment Claims Act: Legislation establishing framework for employment disputes resolution, including jurisdiction of employment claims tribunals for bonus-related disputes.
Bonus Letter Key Components: Essential elements including bonus amount/calculation method, payment timing, tax/CPF implications, conditions, clawback provisions, relationship to employment contract, confidentiality clauses, and acknowledgment section.
