Singapore

Contract Types

In Singapore contracts can be permanent or fixed term.

Probation

There is no legal regulation of probation terms but it should be specified in the contract. Usually probation is between 3 and 6 months.

Working Hours

8 hours per day, maximum of 44 hours per week.

Overtime

Employers must pay a minimum of 150% of base salary for overtime, which is defined as any work outside usual working hours for those employees earning less than SGD 4,500 per month.

Other

A 13th month salary is normal in Singapore, paid at the end of the year. In some cases employees receive a bonus of 2 or 3 months’ salary.

Employers must have Workmen’s Compensation insurance in place via an approved insurer.

Corporation Tax 2024: 17%

Consumption Tax: 9%

Employers’ Social Security Contributions

9 – 17% Pension plus Skills Levy of up to 0.25%

Employees’ Contributions: 7.5 – 20% Pension

Income Tax Rates:

• To 20,000 –  0%
• 20,000 – 30,000 – 2%
• 30,000 – 40,000 – 3.5%
• 40,000 – 80,000 – 7%
• 80,000 – 120,000 – 11.5%
• 120,000 – 160,000 – 15%
• 160,000 – 200,000 – 18%
• 200,000 – 240,000 – 19%
• 240,000 – 280,000 – 19.5%
• 280,000 – 320,000 – 20%
• Over 320,000 – 22%

Notice

The applicable notice period rises with tenure

During probation

as per the contract

• Up to 26 weeks – 1 day
• Two years’ service – 1 week
• Five years – 2 weeks
• Over 5 years – 4 weeks

Notice periods should be stated in the contract. A termination agreement with a severance payment in lieu of notice is possible. This requires the agreement of both parties.

Dismissal

So long as the dismissal is not discriminatory, employers are able to dismiss workers. Correct notice should be given and any outstanding accrued leave should be paid. The employer needs to obtain tax clearance from the authorities before making the final payment.

Severance Pay

Severance is determined by the terms of the contract or the collective agreement which is due after 2 years’ service. Typically it would be between 2 and 4 weeks’ pay per year.

Paid Public Holidays:  11 days

New Year’s Day – 1st January

Day Given in Lieu

Lunar New Year – 10th February

No Day Given in Lieu

Lunar New Year – 11th February

Day Given in Lieu

Good Friday – 29th March

NA – Day Given in Lieu

Hari Raya Puasa* – 10th April

Day Given in Lieu

Labour Day – 1st May

Day Given in Lieu

Vesak Day – 22nd May

Day Given in Lieu

Hari Raja Haji * – 17th June

Day Given in Lieu

National Day – 9th August

Day Given in Lieu

Diwali – 31st October

Day Given in Lieu

Christmas Day – 25th December

Day Given in Lieu

*Tentative date

Comment:

Days are given off in lieu only when the holiday falls on a Sunday. For those falling on a Saturday, a day should be given in lieu or the employee should be paid.

 Election days are also public holidays.

Paid legal entitlement (working days)

Leave entitlement increases with service. The base entitlement after 1 year’s service is 7 days, which rises by 1 day for each year of service until the employee is entitled to the maximum of 14 days’ leave after 8 years. Many employers will provide more than the minimum giving 14 to 20 days leave.

Carry over permitted

Regulation specifies that those earning under SGD 2,600 per year must be allowed to carry over unused leave until the end of the following holiday year. Those earning more than this threshold should use their leave entitlement in the year it is earned unless otherwise agreed.

Payment in lieu allowed

Residual leave must be compensated in cash after termination of employment if it cannot be taken in kind.

Sick

After 6 months’ service, employees are entitled to 14 days per year paid sick leave if no hospitalisation is involved. Should the employee be hospitalised then they are entitled to 60 days. Prior to completing 6 months’ service, employees are entitled to 5 days if they are not in hospital, rising by 3 days per completed month of service, and 15 days for hospitalised leave, rising by 15 days per month.

Maternity

New mothers, after 3 months’ employment, are entitled to 16 weeks maternity leave so long as the child is a Singapore citizen (12 weeks for non Singaporean children). For the first two children mothers receive the first 8 weeks of pay from the employer and the remainder from the government. From the third child onwards the government pays for the full 16 weeks. Female employees have protection of employment whilst on maternity leave.

Paternity

New fathers are entitled to 2 weeks’ paternity leave paid by the government, so long as the child is a Singapore citizen and they are legally married to the mother.

Parental

The leave is also applicable to adoption with the same conditions. Eligible fathers may share up to 16 weeks of the mother’s maternity leave, paid by the government 

Childcare Leave

Parents with a minimum of 3 months’ service can take 6 days per year for childcare leave until the child is 7 years old. This leave cannot be carried forward. The leave is paid, split between the government and the employer up to capped levels (SGD 1,500 per year). As with maternity and paternity leave, the child must be a Singapore citizen for the employee to qualify.

Extended childcare leave is available for 2 days per year for an employee’s youngest child, so long as they are a Singapore citizen and between 7 and 12 years old. This is paid up to a capped amount by the government.

Bereavement Leave

Most employers give 3 days’ paid leave in the event of the death of an immediate family member.

Marriage Leave

5 days on the occasion of an employee’s wedding.

National Service Leave

Employers must allow unpaid leave for employees who are called up for National Service.

Medical

Private medical benefits are commonly offered to employees, and occasionally their dependents, sometimes via an allowance.

This offers access to more choice of specialists and shorter waiting times than provided by the public system.

Life

This is sometimes offered to senior employees.

Other

Per diems to cover travel or other work related expenses are common. An end of year bonus of one or more month’s salary is standard.