Employment Law in Singapore

Coverage and Scope

• Singapore’s main labour law is the Employment Act. It provides the basic terms and conditions at work for employees covered by the Act.
• All employees under a contract of service with an employer are covered including both local and foreign workers, but there are exceptions.
• A contract of service defines the employer-employee relationship, including the terms and conditions of employment.
• The agreement can be in writing, verbal, expressed or implied. It can be in the form of a letter of appointment or employment, or an apprenticeship agreement. However, to minimize disputes on the agreed terms and conditions, the contract should be in writing.

Who is not covered by the Act?

• Seafarer
• Domestic worker
• Statutory board employee or civil servant

If employee are not covered by the Employment Act, the terms and conditions of employment will be according to employee’s employment contract.

The Employment Act is divided into two categories: the Core Provisions, applied to all categories of employees, and Part IV Provisions which apply to only a specific set of employees.

The Core Provisions refer to employee entitlements such as:

• Salary payment
• Paid annual leave
• Paid sick leave
• Paid public holidays
• Dismissal
• Employment of records

Key Provisions

• Employment Contracts

Employment contracts in Singapore can be written, verbal, expressed, or implied. They must be written in English and include essential details such as job scope, salary, working hours, and other employment terms. It’s important for employers to provide a clear and comprehensive contract to avoid disputes.

• Working Hours and Overtime

The standard working hours in Singapore are up to 8 hours a day or 44 hours a week. Overtime work is classified by all work in excess of the normal hours of work (excluding breaks). You can claim overtime if you are:

• • A non-workman earning up to SG$2,600,
  • A workman earning up to SG$4,500.
• Overtime pay = Hourly basic rate of pay x 1.5 x number of hours worked overtime.
• As an employee, you are not allowed to work more than 12 hours a day.
• If an employer requires employees to work more than 12 hours a day must apply for an overtime exemption.
• An employee can only work up to 72 overtime hours in a month.
• Work on rest day or public holidays is not counted in the 72-hour overtime limit.
• Payment must be made within 14 calendar days after the last day of the salary period.

• Salary and Wages

Singapore does not have a minimum wage. Employee salary is subject to negotiation and agreement between employer and employee or trade union.

• • For common work arrangements, the normal contractual hours of work are as follows:
    • Up to 8 hours a day or 44 hours a week, if employees are required to work more than 5 days a week; or
    • Up to 9 hours a day, or 44 hours a week if employees are required to work 5 days or less a week.
• The salary must be paid at least once a month and within  7 calendar days after the end of the salary period. There are exceptions for overtime, resignation without notice and other situations.
• For overtime work, within 14 calendar days after the end of the salary period.

Final salary payment could vary depending on the following situations:

No unauthorized deductions shall be made by employer from employee’s salary with exception on below:

• By court order, or other valid authority.
• If your employer is declared an agent for the recovery of income tax, property tax or goods and services tax (GST) payable by you.

Employer can deduct salary only for the following reasons: absence from work, damage or loss of money or goods, supplying of accommodation or amenities or services, recovery of advances, loans or overpaid salary, CPF contribution, payment to any registered co-operative society or any deduction with written consent.

• Employer cannot deduct more than 50% of your total salary payable in any one salary period with exceptions to absence from work, recovery of advances, loans, overpaid salary or payments with your consent, registered co-operative societies for subscriptions, entrance fees, loan instalments, interest and other dues payable.
• When the contract of service is terminated, the total authorized deduction may exceed 50% of employee’s final salary payment.
• Employer can only reduce foreign worker salaries, or increase or make new deductions to salaries, if:
  • They get employee written consent.
  • They inform MOM of the change in employee’s salary using WP Online (for Work Permit holders) or submit the request to MOM through EP online one month before the salary is reduced (for EP or S Pass holders).

Monthly and Daily Salary:

• Employee may receive a monthly or daily salary.
• Monthly salary for an incomplete month of work is calculated as follows:

Monthly Gross Rate of Pay / Total Number of Working Days in that month x Total Number of Days the Employee Actually Worked in that month

• Daily wages are calculated using either the gross rate or basic rate.

• Basic Rate of Pay:
  • How it is used: For calculating pay for work on a rest day or public holiday.
  • What is included: Basic rate of pay includes wage adjustments and increments that an employee is entitled to under a contract of service.
  • What is excluded: Basic rate of pay excludes:
    • Overtime payments, bonus payments and annual wage supplements (AWS).
    • Reimbursement of special expenses incurred in the course of employment.
    • Productivity incentive payments.
    • Any allowance.

For a monthly-rated employee, the basic rate of pay for 1 day is calculated as follows:

12 x monthly basic rate of pay

52x average number of days an employee is required to work in a week

• Gross Rate of Pay:
  • How it is used: For calculating:
    • Salary in lieu of notice of termination of service.
    • Salary in lieu of annual leave.
    • Salary deduction for unauthorised absence from work.
    • Paid public holidays.
    • Approved paid leave, including annual leave, hospitalisation leave and maternity leave.
  • What is included: Gross rate of pay includes allowances that an employee is entitled to under a contract of service.
  • What is excluded: Gross rate of pay excludes:
    • Overtime payments, bonus payments and annual wage supplements (AWS).
    • Reimbursement of special expenses incurred in the course of employment.
    • Productivity incentive payments.
    • Travel, food and housing allowances.

For a monthly-rated employee, the gross rate of pay 1 day is calculated as follows:

12 x monthly gross rate of pay

52 x average number of days an employee is required to work in a week

• Probation Period

While there is no statutory requirement for a probation period, it is common practice for employers to include a probationary period of 3 to 6 months. During this time, either party can terminate the employment with shorter notice periods.

• Retirement and Re-employment

The minimum retirement age in Singapore is 63, and employers are required to offer re-employment to eligible employees up to the age of 68. This policy aims to encourage older workers to continue contributing to the workforce.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Singapore employment laws and regulations, please visit the official governmental websites.

Updated on: June 2025