Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in English and use the Singapore Dollar currency (SGD).
Working Hours
Part IV of the Singapore Employment Act states that the Standard maximum number of working hours in Singapore are 44 hours per week.
Overtime
For employees covered by the Employment Act, overtime work is paid at a rate of at least 150% of the basic hourly rate of pay for eligible employees, with a maximum of 12 hours worked in any one day and 72 hours in a month. The maximum monthly overtime pay for an employee classified as a white collar worker is 4,500 SGD and 2,600 SGD for a blue collar worker.
The employer must pay overtime within 14 days of the last day of the salary period.
Public Holidays
Public holidays falling on a Sunday are moved to the next working day as a day off in lieu. Public holidays falling on a Saturday should either be paid out or an extra day off should be given in lieu.
For the year 2024:
- 1 Jan: New Year’s Day
- 10 Feb: Chinese New Year
- 11 Feb: Chinese New Year
- 12 Feb: Chinese New Year Holiday (Day Off in Lieu)
- 29 Mar: Good Friday
- 10 Apr: Hari Raya Puasa
- 1 May: Labour Day
- 22 May: Vesak Day (Tentative)
- 17 Jun: Hari Raya Haji
- 9 Aug: National Day
- 31 Oct: Deepavali
- 25 Dec: Christmas Day
Annual Leave (Vacation)
Annual Leave is stipulated for employees covered by the Employment Act who have completed at least three months service. They’re entitled to paid annual leave of at least 7 days in their first year, increasing by one day for each year of service thereafter. However, it is common practice for employers to grant 14–20 days after the completion of the first year.
Sick Days
Once an employee has completed six months of service, the employee is entitled to paid sick leave (at regular gross salary) of 14 days per year if no hospitalization is necessary, or 60 days per year if hospitalization is necessary; this leave includes 14 days as outpatient care.
Before completing six months of employment, an employee is entitled to a number of paid sick days depending on the length of employment at the time.
- Up to three months – five days per year, 15 days if hospitalization is necessary
- Four months – eight days per year, 45 days in the case of hospitalization
- Five months – 11 days per year, 45 days in the case of hospitalization
- Six months – 14 days per year, 60 days in the case of hospitalization
The employee must inform their employer within 48 hours of any inability to work and provide a certificate from a medical professional upon returning to work, for any period of sickness.
Maternity Leave
A pregnant employee, employed for at least three months before the due date and the child being a Singaporean citizen, is entitled to 16 weeks of paid maternity leave. The maternity leave consists of two periods: the woman may take up to 8 weeks before the expected due date but no less than 28 days and the remaining weeks after the baby’s birth.
If the child is not a Singaporean citizen, the maternity leave period is reduced to 12 weeks.
For the first and second child, the first eight weeks are paid by the employer (at regular gross salary). The additional eight weeks can be reimbursed by the Government capped at 10,000 SGD per 4 weeks or a total of 20,000 SGD per child.
However, from the birth of the third child, all 16 weeks of maternity leave are reimbursed directly by the Government, capped at 10,000 SGD per 4 weeks or a total of 20,000 SGD per child.
Paternity Leave
The father/partner is entitled to 2 weeks of paid paternity leave after the baby is born, following three months of service, and within 16 weeks after the baby’s birth. This leave is funded by the Government-Paid Paternity Leave (GPPL), capped at 2,500 SGD per week or a total of 5,000 SGD.
Adoptive fathers are also eligible for government-paid paternity leave if they meet the eligibility criteria.
Parental Leave
Eligible fathers can apply for Shared Parental Leave allowing them to share up to 4 weeks of their wife’s 16 weeks Maternity Leave. The payment is reimbursed by the Government capped at 2,500 SGD per week.
Each parent who has at least 3 months service is eligible for 6 days per year of Childcare Leave until the year the child turns 7 years old, regardless of the number of children they have. Childcare leave is capped at 42 days for each parent.
The employees need to consume their yearly childcare leave entitlement by the end of that year. They cannot carry forward childcare leave meant for one year to the next.
The leave is paid as follows:
- The first 3 days will be paid by the employer.
- The remaining 3 days will be paid by the Government.
- Payments are capped at 500 SGD per day, including CPF contributions, or a total of 1,500 SGD in any calendar year.
The employees are eligible for 2 days of Extended Childcare Leave per year if their youngest child, who is a Singapore citizen, is between 7 and 12 years old (inclusive). These days are reimbursed by the Government, capped at 500 SGD per day.
Bereavement Leave
In the event of the death of an immediate family member, although this is not a statutory entitlement, many Singaporean employers allow employees two or three days of paid leave.
Marriage Leave
In the event of an employee’s marriage, the employee may take up to five days of leave.
Voting Leave
In Singapore, voting/polling day is a public holiday.
Military Leave
Employees are entitled to receive paid reservist leave on an annual basis when they receive the official Notification of National Service Call Up –SAF 100 issued by the government.
Employee Severance and Terminations
Termination Process
The employer or the employee may end the employment relationship by providing the legally required notice, provided it is not for an illegal reason such as discrimination of a group protected by law, etc., and it is in accordance with the contract of employment.
Leavers should be paid all outstanding holiday entitlement, assuming the reason for termination is not misconduct. The employer must seek appropriate tax clearance from IRAS before making the final payment.
If the employer terminates the contract or the employee resigns and works the full notice period, payment is made on the last day of employment or within three days if this is not possible.
If an employee resigns without notice and does not work during the notice period, the payment is made within seven days of the last day of employment.
Notice Period
Less than 26 weeks of service – 1 day notice
More than 26 weeks but less than 2 years of service – 1 week notice
More than 2 years but less than 5 years of service – 2 weeks notice
More than 5 years of service – 4 weeks notice
During the probation period, employment can be terminated by either the employer or the employee with five days of notice.
Severance Pay
In Singapore, employment contracts/collective agreements contain “retrenchment benefit” payments due upon termination once an employee has completed two years of service. It is common practice for this to be 2–4 weeks’ pay for each year in employment.
Probation Period
The probation period in Singapore is set within the employment contract/collective agreement and is generally 3-6 months.
Payroll Cycle
Monthly, paid within 7 days of the end of the salary period.
In the event of termination/resignation, payment is due on the last day of work.
13th Salary
It is customary to pay a 13th month salary at the end of the year in Singapore.
Contributions
Employer Payroll Contributions
VISA
Work permits are required in Singapore; however, the type of permit required is based on the person’s skills. A person with a degree, professional qualifications, or specialist skill will need an employment pass to work in Singapore.
In contrast, a work permit is required for other skilled or unskilled foreign workers. The Singapore Ministry of Manpower (MOM) is responsible for issuing all types of employment passes.
Different types of employment passes may be issued depending on the applicant’s salary, but the basic procedures remain the same. An employment pass is set by the individual and the company they work for. If an employment pass holder wants to change jobs, the employer must cancel the existing EP, and the new employer will have to apply for a new one. The employment pass must also be canceled if the holder ceases employment in Singapore or obtains permanent resident status.
VAT
The GST rate will increase from 8% to 9% with effect from 1 Jan 2024.