Singapore Employment Act Guide for Employers

The Employment Act (EA) is Singapore's main labor legislation, providing baseline terms and conditions of employment for all employees under a contract of service. Administered and enforced by the Ministry of Manpower (MOM), the EA covers a wide range of employment matters including payment of salary, working hours, rest days, public holidays, leave, and termination.

Since April 1, 2019, the EA covers all employees (local and foreign) under a contract of service, except for domestic workers, seafarers, and statutory board employees or civil servants. However, Part IV of the EA (which governs working hours, overtime, and rest days) applies only to workmen earning up to $4,500/month and non-workmen earning up to $2,600/month.

For employers operating in Singapore, understanding the EA is non-negotiable. Whether you have 5 employees or 500, these provisions set the legal floor for employment terms. This guide covers the key EA provisions that every employer and HR team must know.

The Employment Act applies as follows:

General Provisions (All EA-covered employees)

Applies to all employees under a contract of service, regardless of salary level. Covers:

• Payment of salary (must be paid at least once a month, within 7 days after the end of the salary period)
• Public holidays (11 gazetted holidays)
• Annual leave entitlements
• Sick leave and hospitalization leave
• Maternity, paternity, and childcare leave
• Termination and notice provisions
• Protection from wrongful dismissal

Part IV Provisions (Working hours, overtime, rest days)

Part IV applies only to:

• Workmen (manual labor employees) earning up to $4,500/month
• Non-workmen earning up to $2,600/month

Not covered by the EA:

• Domestic workers (covered by separate Employment of Foreign Manpower Act provisions)
• Seafarers (covered by the Merchant Shipping Act)
• Statutory board employees and civil servants
• Managers and executives earning above $4,500/month are covered by the EA for some provisions (dismissal, salary payment, public holidays, maternity/paternity) but not Part IV

For employees covered by Part IV, the EA sets these limits:

Normal Working Hours

• Maximum 8 hours per day or 44 hours per week
• If working more than 5 days a week: maximum 8 hours per day
• If working 5 days or fewer: maximum 9 hours per day (but still max 44 hours/week)
• Employees should not work more than 6 consecutive hours without a break
• Breaks of 45 minutes or less do not count as working time

Overtime

• Overtime rate: at least 1.5 times the hourly basic rate of pay
• Overtime cap: 72 hours per month (can be exceeded only with MOM's approval)
• Overtime is calculated based on a 12-month period
• The hourly basic rate = (12 × monthly basic rate of pay) ÷ (52 × 44)

Important: For overtime salary computation, the monthly salary is capped at $2,600, even if the employee earns more. This means overtime pay = $2,600 × 12 ÷ (52 × 44) × 1.5 = $13.60/hour minimum.

Shift Workers

Shift workers may work more than 8 hours per day or 44 hours per week, provided their average over a continuous period of 3 weeks does not exceed 44 hours per week, and they do not work more than 12 hours in any day (including overtime).

Rest Days (Part IV employees):

• Employees are entitled to 1 rest day per week without pay (unless the contract provides for paid rest days)
• The rest day can be on Sunday or any other day, as determined by the employer
• If the employer requires work on a rest day:
  • At the employee's request (up to half the normal hours): 1x pay
  • At the employer's request (up to half the normal hours): 1x pay
  • At the employer's request (more than half the normal hours): 2x pay for the entire day
  • Beyond normal hours on a rest day: 2x the hourly rate for each extra hour

Public Holidays (All EA employees):

Singapore has 11 gazetted public holidays:

1. New Year's Day
2. Chinese New Year (2 days)
3. Good Friday
4. Labour Day
5. Hari Raya Puasa
6. Vesak Day
7. Hari Raya Haji
8. National Day (August 9)
9. Deepavali
10. Christmas Day

If a public holiday falls on a rest day, the next working day is a paid holiday. Employees who work on a public holiday are entitled to an extra day's salary (on top of the gross rate of pay for that day).

Annual Leave:

• Minimum 7 days for employees who have worked for at least 3 months
• Increases by 1 day for each subsequent year of service, up to a maximum of 14 days
• Entitlement: 7 days (1st year), 8 (2nd), 9 (3rd), 10 (4th), 11 (5th), 12 (6th), 13 (7th), 14 (8th year and beyond)

Sick Leave:

• After 6 months of service: 14 days outpatient sick leave + 60 days hospitalization leave (inclusive of the 14 outpatient days, so total 60 days)
• Graduated entitlement during months 3-6: 5 days outpatient (3 months), 15 days hospitalization (3 months), up to full entitlement at 6 months
• Requires medical certificate from a company-approved doctor or government doctor

Maternity Leave:

• 16 weeks for Singapore citizen children (Government-Paid Maternity Leave — GPML); 12 weeks for non-citizen children
• Eligibility: at least 3 months of service before delivery, child is a Singapore citizen (for 16 weeks)
• First 8 weeks paid by employer, last 8 weeks (for GPML) funded by the Government, capped at $10,000/month

Paternity Leave:

• 2 weeks Government-Paid Paternity Leave for fathers of Singapore citizen children

Childcare Leave:

• 6 days/year per parent for children under 7 (3 days employer-paid, 3 days government-paid, capped at $500/day)
• 2 days/year extended childcare leave per parent for children aged 7-12 (employer-paid)

Either party may terminate an employment contract by giving notice or paying salary in lieu of notice:

Notice Period (if not specified in contract)

• Less than 26 weeks of service: 1 day
• 26 weeks to less than 2 years: 1 week
• 2 years to less than 5 years: 2 weeks
• 5 years and above: 4 weeks

If the employment contract specifies a notice period, that period applies (but must be the same for both employer and employee).

Salary in Lieu of Notice

Either party may pay the other party's salary in lieu of the notice period to end the contract immediately.

Summary Dismissal (Termination Without Notice)

An employer may dismiss an employee without notice only in cases of wilful breach of contract, misconduct, or continual neglect of duties. Before dismissal, the employer should conduct a proper inquiry. Employees may also leave without notice if the employer fails to pay salary within 7 days of it being due.

Wrongful Dismissal

Since April 2019, all employees under the EA (not just those with 2+ years of service) can lodge wrongful dismissal claims with MOM's Tripartite Alliance for Dispute Management (TADM). Dismissals are considered wrongful if they are discriminatory, retaliatory, or carried out without due process for misconduct.