Understanding Your Payslip in Singapore: What Every Deduction Actually Means
If you're a Work Permit holder in Singapore, there are seven costs your employer can never take out of your salary: work pass renewal, security bond, medical insurance, repatriation, compulsory training, medical fees, and levy. If you see any of them as a deduction on your payslip, it isn't allowed.
This guide is for Work Permit holders already working in Singapore. It explains what your employer is allowed to deduct, the limits on those deductions, and what your payslip must show you every month.
7 Costs Your Employer Can Never Deduct From Your Salary
Under the Employment of Foreign Manpower Act, your employer cannot deduct your salary, under any circumstances, for these costs of employing you:
Work pass renewal
Security bond
Medical insurance
Repatriation costs (sending you home)
Compulsory training
Medical fees
Levy payment
Your employer also cannot deduct your salary as a condition for employing you, or for continuing to employ you. Your employer cannot make you pay to get your job or to keep it.
These are your employer's costs, not yours. The levy in particular is a monthly charge your employer pays to the Ministry of Manpower (MOM) for each foreign worker; we explain how it works in Singapore Work Permit Levy Explained.
Seen one of these on your payslip? WhatsApp us at +65 8836 4624 and we'll tell you what to do next.
What Your Employer Is Allowed to Deduct From Your Salary
If you are covered by the Employment Act (Work Permit holders in construction are; migrant domestic workers are not), your employer can deduct your salary only for the reasons below. Anything else is not allowed.
Deduction | The rules |
|---|---|
Absence from work | Only for days you were absent. MOM sets how the amount is calculated. |
Damage or loss of money or goods you are responsible for (tools, equipment, vehicles) | Your employer must first hold an inquiry and give you a chance to explain. Maximum 25% of one month's salary, taken once as a lump sum. |
Accommodation you have accepted | Cannot be more than what the housing actually costs. See the housing section below. |
Amenities and services you have accepted (beyond what your employer must provide) | Your employer needs approval from the Commissioner for Labour first. Accommodation, amenities and services together cannot be more than 25% of your salary for that pay period. |
Salary advances | Paid back in instalments over no more than 12 months. Each instalment is at most 25% of your salary for that pay period. |
Loans | Paid back in instalments. Each instalment is at most 25% of your salary for that pay period. |
Overpaid salary or benefits you did not earn | Your employer can recover the full amount. |
Payments to a registered co-operative society | Only with your written consent. |
Anything else you agree to in writing | Must benefit you, and you can withdraw your consent at any time. It cannot be used for things like liquidated damages, or to recover levy. |
Required by law | For example, a court order, or tax your employer has been told to collect on your behalf. |
About CPF: the Central Provident Fund (CPF) deduction you may hear about applies to Singapore citizens and Permanent Residents. Work Permit holders do not contribute to CPF, so a "CPF" deduction should not appear on your payslip.
Housing: Your Employer Must Arrange It, but Can Charge You for It
Your employer is legally responsible for your housing. They must make sure you live in proper housing that meets MOM's standards, pay the rent on time, and register your address with MOM before your Work Permit is issued.
But "arrange" does not mean "pay for". MOM allows your employer to recover the cost of your housing, in one of two ways:
You pay the dormitory operator directly, or
Your employer deducts a fixed amount from your salary.
If your employer deducts it from your salary, all of these must be true:
You agree to the amount.
The deduction is no more than what your housing actually costs.
The housing deduction (together with any approved amenities) is no more than 25% of your salary.
All your deductions together, such as housing, food and transport, stay within 50% of your salary.
If the amount changes, you agree to the change and your employer updates MOM through WP Online (MOM's online Work Permit system).
Watch for this: if your housing deduction goes up and you never agreed to the new amount, that is not allowed.
The 50% Limit
In any one pay period, your employer cannot deduct more than 50% of your total salary.
Some deductions do not count toward this limit:
Absence from work
Paying back advances, loans, overpaid salary or unearned benefits
Payments to a registered co-operative society that you agreed to
The one exception is your final salary payment when your contract ends. Deductions from that last payment can go above 50%.
Your Employer Cannot Change Your Salary Without Telling MOM
For Work Permit holders, your employer can only lower your salary, or add or increase a deduction, if they:
Get your written consent, and
Inform MOM of the change through WP Online
Your employer is also not allowed to change your salary before your Work Permit is issued. The salary declared in your application is the salary you should receive.
What Your Payslip Must Show
Your employer must give you an itemised payslip, together with your salary or within three working days of paying you. If your job ends, you get your payslip together with any salary still owed to you. It can be printed, digital, or even handwritten.
Every payslip must include these 12 items, unless one does not apply to you (for example, if you worked no overtime, items 9 to 11 can be left out):
No. | What it must show |
|---|---|
1 | Your employer's full name |
2 | Your full name |
3 | Date of payment |
4 | Basic salary (for hourly, daily or piece-rated workers: your rate of pay and total hours, days or pieces) |
5 | Start and end date of the salary period |
6 | Allowances paid, fixed (e.g. transport) and one-off |
7 | Other payments, such as bonuses, rest day pay and public holiday pay |
8 | Deductions for the period, both fixed and one-off (e.g. absence) |
9 | Overtime hours worked |
10 | Overtime pay |
11 | Start and end date of the overtime period, if different from item 5 |
12 | Net salary paid |
Your employer must keep records of your payslips for the latest two years. Keep your own copies too. If you ever need to make a claim, your payslips are your evidence.
What to Do If a Deduction Isn't Allowed
Check your payslip against the two lists above. Note the month, the deduction and the amount.
Ask your employer in writing what the deduction is for. Keep the reply.
If it isn't resolved, report it to MOM. You can use MOM's e-Services or the FWMOMCare app. Salary claims go to the Tripartite Alliance for Dispute Management (TADM). We explain the full process step by step in Your Rights as a Migrant Construction Worker in Singapore.
One more thing to watch for: if your employer asks you for money to get or keep your job, that is not allowed. Employment agencies are different: a licensed agency may charge you a fee, but the amount is capped by law, and anyone who is not a licensed agency cannot charge you at all. You can check whether an agency is licensed in How to Check If a Singapore Employment Agency Is Licensed.
Something on Your Payslip Doesn't Add Up?
Stagencies is a MOM-licensed employment agency (EA Licence No. 19C9576). If you're a Work Permit holder in Singapore and something on your payslip doesn't look right, WhatsApp us at +65 8836 4624.
Source: Ministry of Manpower, "Allowable salary deductions", "Itemised pay slips", "Employer's responsibilities for migrant worker housing" and the FAQ "Can the cost of housing be counted towards fixed monthly salary?", checked 30 September 2026.
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