Minimum Wage in Singapore

Minimum Wage in Singapore

Singapore does not enforce a standard minimum wage across all sectors. Instead, the wage structure is influenced by market demands, company policies, and individual negotiations.

This flexibility allows businesses to adjust wages based on performance and market conditions, fostering a competitive and merit-based environment.

Local Qualifying Salary (LQS) in Singapore

The Local Qualifying Salary is used to decide how many local employees a company can count when calculating its Work Permit and S Pass quota. The current LQS is SG$1,600.

The LQS is reviewed regularly so it can keep up with rising local wages and ensure the quota system remains effective.

Progressive Wage Model (PWM) in Singapore

The Progressive Wage Model (PWM) is Singapore’s strategic initiative aimed at uplifting lower-wage workers by setting minimum wage benchmarks in specific sectors.

The PWM covers sectors like cleaning, security, and landscape, lift and escalator, retail, food services, occupational PWs for administrators and drivers and waste management sectors, with plans to expand to more industries.

Under the PWM, workers are assured a minimum salary that increases progressively with skill levels and job responsibilities.

These sectors have structured career progression pathways, ensuring that as workers gain more skills and responsibilities, their wages increase correspondingly.

Overtime Pay and Salary Limits in Singapore

Overtime Pay:

• For overtime work, employees must be paid within 14 calendar days after the end of the salary period.
• 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 or less.
  • A workman earning up to SG$4,500 or less.
• 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.

Central Provident Fund (CPF) in Singapore

The Central Provident Fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement, home ownership, healthcare, family protection and asset enhancement according to the below accounts:

CPF Contribution Accounts in Singapore:

• Ordinary Account (OA): For housing, insurance, investment, and education.
• Special Account (SA): For old age and investment in retirement-related financial products.
• Medisave Account (MA): For hospitalisation and approved medical insurance.
• Retirement Account (RA): On your 55th birthday, a fourth account, the Retirement Account (RA), is automatically created.

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: April 2026