Singapore Employment Act: What Every Employer Must Know (2026)

The Employment Act (Chapter 91) is Singapore's primary labor legislation. It covers all employees under a contract of service except domestic workers, seafarers, and statutory board/government employees. The Act was significantly amended in 2019 to extend coverage to all employees regardless of salary level. It sets minimum standards for salary payment, working hours, leave, and termination.

Who Does the Singapore Employment Act Cover?

The Employment Act covers every employee working under a contract of service in Singapore. Three categories are excluded: domestic workers, seafarers, and employees of the Government or statutory boards. The Act applies regardless of nationality: Singapore citizens, permanent residents, and foreign workers are all covered equally.

Part IV of the Employment Act provides additional protections for two groups. Workmen (manual laborers) earning up to S$4,500/month. Non-workmen earning up to S$2,600/month. Part IV covers working hours, overtime pay, rest days, and shift work provisions. Managers and executives above these thresholds are covered by the general Employment Act provisions but not Part IV.

What Are the Salary Payment Rules Under the Employment Act?

Salary must be paid at least once a month. The salary period cannot exceed 1 month. Salary must be paid within 7 days after the end of the salary period. Overtime pay must be paid within 14 days after the end of the salary period. Salary on termination must be paid on the last day of employment (if dismissed) or within 7 days of notice period end.

Authorized deductions from salary include: CPF contributions, absence from work, damage to or loss of goods/money (with conditions), accommodation/amenities/services provided by employer, income tax recovery (IR21), and court orders. Total deductions cannot exceed 50% of salary in any salary period. Unauthorized deductions can result in fines of up to S$5,000.

What Are the Working Hours Rules in Singapore?

Part IV employees are limited to 44 hours of work per week or 8 hours per day (9 hours if 5-day work week). Overtime is capped at 72 hours per month. Overtime must be paid at 1.5 times the hourly basic rate of pay. The overtime rate calculation is based on the basic rate of pay, not including allowances or bonuses.

Night work and shift work have specific provisions. Employees on shift work can work up to 12 hours per day under certain conditions. Continuous night shift workers must have a break of at least 11 consecutive hours between shifts. Employers must keep detailed records of hours worked for all Part IV employees.

What Leave Entitlements Does the Employment Act Provide?

Maternity leave is 16 weeks for the first and second child (Government-Paid Maternity Leave). The first 8 weeks are paid by the employer (reimbursed by Government for the first 2 children, capped at S$10,000/4 weeks). Third child onwards: 16 weeks Government-Paid. Eligibility: 3 months employment before delivery, child is a Singapore citizen.

How Does Termination Work Under the Employment Act?

Either party can terminate employment by giving notice as specified in the contract. If no notice period is specified, Section 10 defaults apply: 1 day (employed less than 26 weeks), 1 week (26 weeks to 2 years), 2 weeks (2 to 5 years), 4 weeks (5 years and above). Either party can pay salary in lieu of notice.

Dismissal without notice is permitted for employee misconduct after due inquiry. Misconduct includes willful disobedience, dishonesty, disorderly conduct, and continuous absence from work for 2+ days without approval or valid reason. The employer must conduct an inquiry before dismissal: immediate dismissal without inquiry is wrongful.

Employees who believe they were wrongfully dismissed can file a claim with the Tripartite Alliance for Dispute Management (TADM) within 1 month, followed by the Employment Claims Tribunal if mediation fails. Remedies include reinstatement or compensation up to 6 months' salary. Aniday's EOR Singapore (Aniday EOR Singapore) manages all termination compliance.

What Are the Retrenchment Requirements?

Employers retrenching employees must notify MOM if 5 or more employees are retrenched within 6 months. Notification must be made within 5 working days of the retrenchment notice. Retrenchment benefits are not legally mandated but are a common practice: the prevailing norm is 2 weeks to 1 month salary per year of service.

MOM's Tripartite Advisory on Managing Excess Manpower recommends: consider alternatives before retrenchment (no-pay leave, shorter work weeks, retraining), provide reasonable retrenchment benefits, give adequate notice, and assist retrenched employees with job search. While advisory, MOM monitors compliance and may limit future work pass approvals for employers with poor retrenchment practices.

Does the Employment Act apply to company directors?

Company directors who have a contract of service (employment relationship) are covered. Directors who are shareholders or serve in a non-executive capacity without a contract of service are not employees under the Employment Act. The test is whether a contract of service exists, not the job title.

Are part-time employees covered by the Employment Act?

Yes. The Employment (Part-Time Employees) Regulations provide pro-rata entitlements for employees working less than 35 hours per week. Leave entitlements, notice periods, and salary protections apply proportionally. Part IV overtime protections apply if the employee works beyond their contracted hours.

What records must employers keep under the Employment Act?

Employers must maintain records for all current employees and for 2 years after employment ends. Required records include: employee personal details, employment terms, salary records (payment dates, amounts, deductions), leave records, hours worked (Part IV employees), and overtime records. Failure to keep records is an offense: fine up to S$5,000.

Can an employer change employment terms unilaterally?

No. Changes to Key Employment Terms require employee consent. Unilateral changes constitute a breach of contract. If the employee does not agree, the employer can issue notice of termination and offer re-employment on new terms. The employee can accept the new terms or claim constructive dismissal.

What is the minimum wage in Singapore?

Singapore has no general minimum wage. The Progressive Wage Model (PWM) sets minimum wages for specific sectors: cleaning, security, landscape, retail, food services, and waste management. PWM wages are S$1,570-S$2,210/month for entry-level positions (as of 2024). From March 2023, the Local Qualifying Salary (LQS) of S$1,400/month triggers CPF obligations.

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