A foreign worker working in Singapoe, posted a complaint on Facebook lamenting how it has been 15 days since she’s supposed to get her salary.
The woman said that she needed to use the money urgently and accused the company of allegedly cheating her of her 1-month salary.
She said that her employer purportedly told her that she needs to pay income tax because she had been working in Singapore for more than a year, and she is upset at the IRAS report still pending.
Here is what she said
What are u doing without giving my salary it’s already 15 days ur company keeps me waiting…I’m already told that I need use money urgent this is how ur company cheated ex employee 1month salary??? ..
2k salary u told me about income tax just coz working more than 1year …it’s really f-ing s-t…IRAS notification report already given 5days back….but still pending want to ask IRAS again???
Netizens’ comments
- The company never cheat u, they really need to file the tax clearance for foreign employee. Company have to withhold salary for at least a month and wait for IRAS’s letter, it might take around 2 or 3 weeks.
- Call the IRAS by urself if ur foreigner under permit pass. Call IRAS personally to give clearance, tell them ur FIN no. and reason why u need them to expedite.
After IRAS give clearance and will notified ur ex-employer by mail or e-mail of how much u gonna pay the tax.
After paying the tax, inform ur ex-employer, after that then can release ur salary. This is the norm.
The only thing is maybe ur ex employer didn’t rush IRAS for u that’s all. Bt as an ex-employer themselves point of view, why shld they need to rush for u right? U shld call in IRAS by urself.
Or after u called IRAS, log in IRAS website approx 1 week+ later to check ur tax amt payable also can. - Everybody who has an income in SG must pay income tax. Isnt quite a universal rule? Like that say cheating… if give u the $ first, when IRAS request to pay ur income tax will u pay? The rate is 15 – 22% from ur total yearly income. So if your income is 2k * 12 months = 24k, ur income tax payable is abt SGD 3600.. good luck
- At least 3 week-1 month.
After IRAS tell how much income tax, company will deduct it from your salary and pay you the rest. So it’s normal.
Tax for foreign workers
According to the IRAS website, foreign workers must settle all their taxes if they are about to leave singapore, and their employer has to notify IRAS.
IRAS said in their website: “You must settle all your taxes if you are about to leave Singapore or change to another job within Singapore. This process is known as tax clearance. Your current employer must notify IRAS and ensure you have paid all taxes before you cease employment with them.”
IRAS guidelines
If you cease employment with your current employer, go on an overseas posting or leave Singapore for more than three months, your employer must notify IRAS at least one month in advance by filing the Form IR21, and withhold all monies due to you from the date they are aware of your impending cessation of employment or departure from Singapore. This process is known as tax clearance.
In the Form IR21, your employer will report your employment details and income earned up to your last day of employment or the day before your departure from Singapore.
To ensure that you pay all your income tax, your employer is required to withhold the payment of all monies (including salary, bonus, overtime pay, leave pay, allowances, gratuities, lump sum payments, etc.) due to you from the date they are aware of your impending cessation of employment or departure from Singapore.
