How to Prepare Payroll and Records for NSmen: A Compliance Guide for Employers in Singapore (2025)

If you employ Singaporean men, there’s a strong chance they’ll be called up for National Service (NS) or reservist duties at some point.

While most employers know their basic obligations — to release staff and comply with the law — many overlook the administrative side: how to manage payroll, track time away correctly, and get reimbursed through the Make-Up Pay scheme.

This guide focuses on the back-office side of NS compliance — what you need to prepare, track, and retain when your employee serves the nation.

Why Good Payroll Records Matter

When an NSman is called up for training, the Ministry of Defence (MINDEF) ensures they aren’t financially disadvantaged. That’s where the Make-Up Pay (MUP) scheme comes in — reimbursing either the employer (if you continue to pay them) or the employee (if you don’t).

To process these claims smoothly, accurate payroll and documentation are critical.

What to Track When an Employee Serves NS

Whether or not you choose to pay your employee during their reservist period, you need to:

• Record their gross monthly income (salary, fixed allowances, bonuses, CPF contributions)
  
• Log the exact dates of their reservist duty
  
• Keep clear payslips showing salary before, during, and after the NS period
  
• Ensure SAF allowance data is captured (if coordinating directly with your employee)
  

Handling Payroll for Partial Months

Sometimes, reservist duty doesn’t span a full month — which means you’ll need to:

• Pro-rate salary based on working days vs ICT days
  
• Distinguish between actual salary paid and any reimbursement amounts expected
  
• Ensure CPF calculations reflect the actual pay period
  
• Use consistent formulas and payroll cycles to avoid discrepancies during audits
  

Clarity in these calculations reduces errors and makes MUP applications far smoother.

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Avoid These Common Mistakes

Even well-meaning employers can run into problems when records are unclear or inconsistent. Watch out for:

• Missing payslips or inconsistent salary data
  
• Incorrect classification of NS duty as annual or unpaid leave
  
• Late submission of MUP claims (employees and employers are subject to deadlines)
  
• Failing to distinguish between fixed and variable pay in claims
  

Taking time to prepare clean, structured payroll records will save you time — and money — later.

Best Practices for Small Businesses

Here’s how to stay on top of things:

• Create a dedicated payroll category or note for NS/ICT periods in your HR/payroll system
  
• Maintain a monthly payroll summary, including all allowances and deductions
  
• Retain NS-related records (payslips, call-up letters, SAF allowance info) for at least 5 years — in line with recordkeeping standards under the Income Tax Act
  
• Assign responsibility for MUP documentation within your team, even if it’s a small one
  

When a claim is submitted, having everything on file avoids delays and strengthens your position in the event of a review.

What You’ll Need to Submit a Make-Up Pay Claim

For employers submitting a claim, MINDEF requires:

• NRIC and full name of the employee
  
• Dates of NS training
  
• Monthly salary details (preferably last 3–6 months)
  
• Proof of salary payment (bank statements, payslips)
  
• CPF contribution history
  
• Your company’s bank account details for reimbursement
  

Everything is submitted through the NS Portal and turnaround times are generally quicker when documentation is complete.

Summary

Small business owners already wear multiple hats. But when it comes to payroll and compliance, having proper systems in place isn’t a luxury — it’s essential.

When you track NS periods accurately and keep detailed records, you:

• Stay compliant with statutory requirements
  
• Avoid penalties or disallowed claims
  
• Reduce admin headaches during NS call-ups
  
• Build a smoother, more professional back office
  

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Here are some articles you might find helpful:

Managing Reservist Deferment Requests: A Practical Guide for Singapore Employers in 2025

National Service and Reservist Duties in Singapore: What Employers Need to Know in 2025

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