Employing in Singapore
For employees covered by the Employment Act:
- Employers must pay salaries at least once a month.
- They may choose to pay salaries at shorter intervals if preferred.
Salary must be paid as follows:
- Within 7 days after the end of the salary period.
- For overtime work, within 14 days after the end of the salary period.
Non-payment of salary is an offence.
The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from both employers and employees.
CPF is a key pillar of Singapore’s social security system and is designed to support citizens in meeting their retirement, housing, and healthcare needs.
The Basic Retirement Sum (BRS) is intended to provide monthly payouts during retirement, helping to cover basic living expenses.
Contractual working hours are limited to a maximum of 44 hours per week:
- Employees working 5 days or fewer per week may work up to 9 hours per day.
- Employees working more than 5 days per week may work up to 8 hours per day.
Employers are not required to pay for rest and meal breaks.
Employees are not permitted to work more than 12 hours in a day under any circumstances.
Employers must provide one rest day per week:
- A rest day must comprise a full 24-hour period (midnight to midnight).
- This rest day is not a paid day.
Eligibility
You are entitled to paid annual leave if you have worked for your employer for at least 3 months.
You can only apply for annual leave after working for 3 months.
Entitlement
Your annual leave entitlement depends on how many years of service you have with your employer. Your year of service begins from the day you start work with your employer.
A contract of service may be terminated by either the employer or the employee. Termination can occur for various reasons, including:
- The employee resigns.
- The employer dismisses the employee.
- The contract term expires, such as upon the completion of a project or contract period.
Both parties must adhere to the terms and conditions for termination as stated in the contract of service. A termination letter is mandatory, and any notice of termination must be in writing, whether it is issued by the employer or the employee.
If a termination letter is not provided, the employee should request one from the employer. Without a formal termination letter, the employee is still legally considered employed by the company.
