Singapore employment law for SMEs starts with the Employment Act, which covers every employee under a contract of service, local or foreign, including managers and executives. Its hours and overtime rules in Part 4 reach only workmen earning S$4,500 a month or less and non-workmen earning S$2,600 or less (MOM, as of 5 November 2026). You issue written key employment terms within 14 days of the first day of work. Work passes, workplace safety and work injury insurance add separate duties, and the Workplace Fairness Act is targeted for the end of 2027.
Accurate as of 5 November 2026. Every figure, date and rule on this page was checked against its source on that date, and the page is rechecked monthly.
The Employment Act covers every employee under a contract of service, and Part 4 adds salary limits
The Act covers each local or foreign employee under a contract of service, whether full-time, part-time, temporary or contract, with three exclusions. Seafarers, domestic workers and statutory board employees or civil servants follow their own contracts. Since 1 April 2019 the Act covers managers and executives too. This guide covers employers of staff under the Act, and the later sections add work passes, workplace safety and health, work injury insurance and sector rules.
| Employee type | Employment Act (general terms) | Part 4: hours, overtime, rest days | Monthly basic salary test |
|---|---|---|---|
| Workman (mainly manual labour) | Covered | Covered | S$4,500 or less |
| Workman above the limit | Covered | Not covered | Above S$4,500 |
| Non-workman who is not a manager or executive | Covered | Covered | S$2,600 or less |
| Non-workman above the limit | Covered | Not covered | Above S$2,600 |
| Manager or executive | Covered | Not covered | No salary test |
| Seafarer, domestic worker, statutory board employee, civil servant | Not covered | Not covered | Not applicable |
Employment Act coverage by employee type, as shown on MOM's coverage page last updated 24 July 2025 and checked 5 November 2026.
What counts as basic salary for the Part 4 test?
Basic salary is the pay before extras, so overtime, bonus, annual wage supplement, productivity incentive payment, expense reimbursement and every allowance sit outside the test. A non-workman paid S$2,400 basic plus S$500 in fixed allowances passes the S$2,600 test on the S$2,400 alone. Part-time employees working under 35 hours a week fall under the Employment of Part-Time Employees Regulations.
Who counts as a workman?
A workman is generally someone whose work mainly involves manual labour, including artisans, apprentices and supervisors who do manual work for more than half their working time. The First Schedule of the Act also lists cleaners, construction workers, labourers and drivers. MOM offers a Part 4 self-assessment tool for borderline roles.
Written key employment terms reach every covered employee within 14 days of day one
You give each covered employee written key employment terms (KETs) within 14 days after the first day of employment, and an itemised payslip with each salary. KETs are mandatory for employees hired on or after 1 April 2016 for 14 days or more continuously. MOM's toolkit lists 18 items, which the table groups.
| KET group | Items required | Count | Omission rule |
|---|---|---|---|
| Parties | Full name of employer, full name of employee | 2 | None |
| Job | Job title, main duties and responsibilities; start date; duration if fixed-term | 3 | Duration applies to fixed-term contracts |
| Work arrangements | Daily hours, working days per week, rest day | 1 | None |
| Pay | Salary period, basic salary, fixed allowances, fixed deductions, overtime payment period, overtime rate, other components such as bonuses | 7 | Overtime items omitted for a PME with no overtime pay |
| Leave and benefits | Types of leave, other medical benefits | 2 | None |
| Probation and notice | Probation period, notice period | 2 | None |
| Place of work | Place of work | 1 | Optional, encouraged where it differs from the employer's address |
MOM's 18 required KET items grouped by topic, with the count per group, checked 5 November 2026.
When does an employee receive an itemised payslip?
An employee receives the itemised payslip with the salary or within 3 working days after the salary is paid. Where pay runs more than once a month, a consolidated payslip is allowed if the employee receives it at least monthly. On termination or dismissal, the payslip goes out with the outstanding salary.
How long do you keep payslip records?
You keep the latest 2 years of payslips for a current employee, and for an ex-employee you keep the latest 2 years of payslips for 1 year after they leave. Payroll files hold personal data, and the PDPA compliance guide sets out the retention, protection and breach duties that attach to personal data.
Part 4 sets working hours, overtime and rest days for employees below the salary limits
A Part 4 employee works up to 44 hours a week, earns at least 1.5 times the hourly basic rate for overtime and gets one unpaid rest day a week. Contractual hours reach 9 hours a day on a 5-day week or 8 hours a day on a longer week. The daily limit including overtime is 12 hours, and overtime is capped at 72 hours a month unless MOM grants an exemption.
How do you calculate overtime pay?
Overtime pay equals the hourly basic rate times 1.5 times the overtime hours, with the hourly rate for a monthly-rated employee set at 12 times monthly basic pay divided by 52 times 44. Overtime is due within 14 days after the last day of the salary period.
| Step | Calculation | Result | Basis |
|---|---|---|---|
| Monthly basic salary | Non-workman, below the S$2,600 limit | S$2,400 | Part 4 coverage test |
| Hourly basic rate | (12 x 2,400) / (52 x 44) = 28,800 / 2,288 | S$12.5874 | MOM formula for monthly-rated staff |
| Overtime rate | 12.5874 x 1.5 | S$18.8811 | At least 1.5 times the hourly basic rate |
| Pay for 10 overtime hours | 18.8811 x 10 | S$188.81 | Due within 14 days after the salary period |
Worked overtime calculation using MOM's formula for a monthly-rated employee, amounts to four decimal places then rounded to the cent, checked 5 November 2026.
What does an employee earn for working a rest day?
Pay for rest-day work depends on who asked for it and how long the employee works, from half a day's salary to two days' salary plus overtime. An employer does not require rest-day work except in exceptional circumstances, and the longest gap between rest days is 12 days.
| Rest-day work requested by | Up to half of normal daily hours | More than half of normal daily hours | Beyond normal daily hours |
|---|---|---|---|
| Employer | 1 day's salary | 2 days' salary | 2 days' salary plus overtime pay |
| Employee | Half a day's salary | 1 day's salary | 1 day's salary plus overtime pay |
Rest-day pay for Part 4 employees, from MOM's hours of work page of 24 July 2025, checked 5 November 2026.
How many paid public holidays does an employee get, and what if one falls on a rest day?
A covered employee gets 11 paid public holidays a year, and working one earns an extra day's salary or time off. An employee loses holiday pay by being absent without consent or a reasonable excuse on the working day before or after the holiday. Deepavali falls on Sunday 8 November 2026, and Monday 9 November 2026 is a public holiday if the employee's rest day falls on 8 November.
| Holiday falls on | Example on a 5-day week | Pay for working it | Holiday in return |
|---|---|---|---|
| A working day | Weekday | An extra day's salary at the basic rate, plus overtime for hours beyond normal hours | None |
| A non-working day | Saturday | Overtime for extra hours, plus one extra day's salary at the gross rate | Another day off, in place of the extra salary |
| A rest day | Sunday | Pay for the rest-day work, plus overtime beyond normal hours | The next working day becomes a paid holiday |
Public holiday pay by day type, from MOM's public holiday entitlement and pay page, checked 5 November 2026.
Which dates are the 2027 public holidays?
The 2027 calendar has 11 public holidays, and 4 of those days fall on a Saturday or Sunday. Planning rosters early matters for the weekend dates. MOM lists Chinese New Year on 6 and 7 February 2027, with Monday 8 February 2027 a public holiday if the employee's rest day falls on 7 February.
| Holiday | 2027 date | Weekday | Weekend |
|---|---|---|---|
| New Year's Day | 1 January | Friday | No |
| Chinese New Year | 6 and 7 February | Saturday and Sunday | Yes |
| Hari Raya Puasa | 10 March | Wednesday | No |
| Good Friday | 26 March | Friday | No |
| Labour Day | 1 May | Saturday | Yes |
| Hari Raya Haji | 17 May | Monday | No |
| Vesak Day | 20 May | Thursday | No |
| National Day | 9 August | Monday | No |
| Deepavali | 28 October | Thursday | No |
| Christmas Day | 25 December | Saturday | Yes |
Singapore public holidays in 2027 as listed by MOM, with weekday and weekend flag, checked 5 November 2026. Chinese New Year counts as two holidays.
Leave entitlements come from the Act and from government-paid schemes with set caps
Statutory leave runs from 7 days of annual leave to 16 weeks of government-paid maternity leave, and the employer pays or claims back depending on the scheme. Annual and sick leave start after 3 months of service. The parental schemes require a Singapore citizen child and 3 continuous months of service before the birth.
| Leave | Entitlement | Who pays | Condition |
|---|---|---|---|
| Annual leave | 7 days in year 1, plus 1 day a year, 14 days from year 8 | Employer | 3 months of service, prorated by completed months |
| Paid outpatient sick leave | 14 days after 6 months (5 days at 3 months) | Employer | 3 months of service |
| Paid hospitalisation leave | 60 days after 6 months, including the outpatient days (15 days at 3 months) | Employer | 3 months of service |
| Maternity leave, Government-Paid Maternity Leave | 16 weeks | First and second child: employer pays 8 weeks, government reimburses 8 weeks up to S$10,000 per 4 weeks and S$20,000 per child. Third child onward: government reimburses all 16 weeks up to S$40,000 | Singapore citizen child, 3 months of service |
| Maternity leave, Employment Act option | 12 weeks | Employer pays 8 weeks for a mother with fewer than 2 living children; last 4 weeks unpaid | Covered by the Act, 3 months of service |
| Paternity leave | 4 weeks for births, due dates or adoption intent on or after 1 April 2025 | Employer, reimbursed up to S$2,500 a week, S$10,000 for 4 weeks | Singapore citizen child, 3 months of service |
| Shared parental leave | 10 weeks for births from 1 April 2026 (6 weeks for births from 1 April 2025 to 31 March 2026) | Employer, reimbursed up to S$2,500 a week | Singapore citizen child, 3 months of service |
| Childcare leave | 6 days a year per parent for a child under 7 | Employer pays 3 days; government reimburses 3 days up to S$500 a day | Singapore citizen child, 3 months of service |
| Extended childcare leave | 2 days a year for a youngest Singaporean child aged 7 to 12 | MOM's page states no pay terms | Singaporean child |
Statutory leave and who pays, from MOM leave pages updated between 24 July 2025 and 24 August 2026, checked 5 November 2026.
How do you prorate annual leave for a part-year employee?
You multiply completed months of service divided by 12 by the annual entitlement, and you round a fraction of less than half a day down. Partial months do not count, and approved unpaid leave is excluded. MOM's own example gives 4 completed months on a 10-day entitlement as (4 / 12) x 10 = 3.33, rounded down to 3 days.
How much paid sick leave does a new hire earn in the first 6 months?
Paid sick leave builds in steps of 3 outpatient days and 15 hospitalisation days per month between month 3 and month 6. Sick leave taken before the 3-month mark is unpaid.
| Completed months of service | Paid outpatient sick days | Paid hospitalisation days | Step up from the row above |
|---|---|---|---|
| 3 | 5 | 15 | First entitlement |
| 4 | 8 | 30 | 3 outpatient, 15 hospitalisation |
| 5 | 11 | 45 | 3 outpatient, 15 hospitalisation |
| 6 and thereafter | 14 | 60 | 3 outpatient, 15 hospitalisation |
Paid sick leave by completed months of service, from MOM's worked example, with the step column derived by subtraction, checked 5 November 2026.
Salary, payslips and CPF run on fixed payment deadlines with set penalties
You pay salary at least monthly and within 7 days after the salary period ends, and you pay overtime within 14 days. MOM's paying salary page sets final-pay dates by exit type. CPF contributions apply to Singapore citizens and permanent residents.
What final salary is due when an employee leaves?
Final salary is due on the last day of employment when notice is served, and within 7 days when the employee leaves without serving notice. Dismissal and employer termination allow up to 3 working days when payment on the last day is not possible.
| Exit type | Final salary due | Notice rule | CPF on the notice pay |
|---|---|---|---|
| Resignation, notice served | Last day of employment | Contract period, or the default when silent | Payable on salary earned during notice |
| Resignation, notice not served | Within 7 days of the last day | Pay salary in lieu of notice | Not payable on salary in lieu |
| Employer terminates with notice | Last day, or within 3 working days of termination if that is not possible | Same length for employer and employee | Payable on salary earned during notice |
| Dismissal for misconduct after inquiry | Last day, or within 3 working days of dismissal if that is not possible | No notice and no salary in lieu | Not applicable |
Final salary timing by exit type, from MOM's paying salary page of 30 January 2026 and termination with notice page, checked 5 November 2026.
What are the CPF rates and what does late payment cost?
For employees aged 55 and below, CPF contributions are 17% from the employer and 20% from the employee, a total of 37%, in the rates published from 1 January 2026. The rate applies to monthly wages above S$750 for Singapore citizens and for permanent residents from their third year. MOM states that late payment interest runs at 18% a year, which is 1.5% a month, with a minimum of S$5 a month.
| Offence | Fine | Imprisonment | Applies to |
|---|---|---|---|
| Late or unpaid CPF, first offence | S$1,000 to S$5,000 | Up to 6 months, or both | Each offence |
| Late or unpaid CPF, repeat offence | S$2,000 to S$10,000 | Up to 12 months, or both | Each offence |
| Deducted the employee's share but did not pay it to CPF Board | Up to S$10,000 | Up to 7 years, or both | Each offence |
CPF Act penalties as stated on MOM's employer contributions page last updated 24 October 2024, checked 5 November 2026.
For a monthly wage of S$3,000, the employer share is 0.17 x 3,000 = S$510, the employee share is 0.20 x 3,000 = S$600, and the total is S$1,110. One month of late interest on that S$1,110 is 0.015 x 1,110 = S$16.65.
Source: CPF Board, November 2026
How long do you hold a foreign employee's final pay?
You withhold monies due to a foreign employee for up to 30 days after you notify the Comptroller of Income Tax of the cessation. The hold exists for tax clearance. Migrant workers paying the foreign worker levy are exempt from CPF but pay the Skills Development Levy.
Notice of termination follows the contract, and the Act sets defaults when the contract is silent
Notice in the contract binds both sides at the same length, and the default is 1 day, 1 week, 2 weeks or 4 weeks by length of service when the contract is silent. Either side serves the notice or pays salary in lieu, and both sides waive notice by mutual consent, in writing. The notice period includes the day notice is given, plus public holidays, rest days and non-working days.
| Length of service | Default notice | Days counted | Last day if notice is given Monday 9 November 2026 |
|---|---|---|---|
| Less than 26 weeks | 1 day | 1 | Monday 9 November 2026 |
| 26 weeks to less than 2 years | 1 week | 7 | Sunday 15 November 2026 |
| 2 years to less than 5 years | 2 weeks | 14 | Sunday 22 November 2026 |
| 5 years or more | 4 weeks | 28 | Sunday 6 December 2026 |
Default notice from MOM's termination with notice page; the last-day column counts the day notice is given as day 1, derived from MOM's counting rule, checked 5 November 2026.
How does leave during the notice period change the last day?
Approved annual leave inside the notice period leaves the last day unchanged, and offsetting leave with employer agreement brings the last day forward. Sick leave counts as part of the notice period for covered employees, and the employer does not extend the period or claim short notice. Reservist training does not count, so a week of training extends notice by a week.
When does an employer dismiss for misconduct without notice?
An employer dismisses without notice and without salary in lieu after a due inquiry finds misconduct. There is no fixed inquiry procedure, but the employee hears the allegation, presents their case and is heard by someone who does not appear biased. Suspension during the inquiry stays at one week or less without the Commissioner for Labour's approval, and the employer pays at least half salary during it.
How long does an employee have to claim wrongful dismissal?
An employee files a wrongful dismissal claim with TADM within one month of the last day of employment. If TADM does not resolve it, the claim goes to the Employment Claims Tribunals. After a dismissal without notice the employer shows proof the dismissal was not wrongful, and after a dismissal with notice or salary in lieu the employee shows it was wrongful. A manager or executive dismissed with notice needs at least 6 months of service to file.
What does a retrenchment require?
An employer with at least 10 employees notifies MOM within 5 working days after it notifies any affected employee. The notification goes through MOM's Notify for retrenchment exercise e-service. MOM treats retrenchment as a last resort after cost-saving measures.
Employers offer re-employment up to age 69 now that the minimum retirement age is 64
An employer offers re-employment to an eligible employee who turns 64 and does not dismiss any employee on grounds of age. The minimum retirement age rose to 64 and the re-employment age rose from 68 to 69 on 1 July 2026. If no job is available, the employer transfers the duty to another employer with the employee's agreement or pays an Employment Assistance Payment (EAP).
| Monthly salary | 3.5 months of salary | Minimum | Maximum | EAP payable |
|---|---|---|---|---|
| S$1,500 | S$5,250 | S$6,250 | S$14,750 | S$6,250 |
| S$3,000 | S$10,500 | S$6,250 | S$14,750 | S$10,500 |
| S$5,000 | S$17,500 | S$6,250 | S$14,750 | S$14,750 |
Standard Employment Assistance Payment of 3.5 months' salary within MOM's minimum and maximum, worked for three salaries, checked 5 November 2026.
A lower EAP of 2 months' salary, between S$4,000 and S$8,500, applies to an employee re-employed for at least 30 months since age 64.
The Employment Pass, S Pass and Work Permit set salary floors, quotas and levies by skill tier
An Employment Pass needs a fixed monthly salary from S$5,600 and an S Pass from S$3,300 (both outside financial services), while a Work Permit has no salary floor, and only the S Pass and Work Permit carry a quota and a monthly levy (MOM, as of 5 November 2026). An employer or appointed employment agent applies for the pass on the candidate's behalf. This guide covers the three passes an SME uses most often.
| Pass | Who it is for | Qualifying salary rule | Quota and levy | Family passes |
|---|---|---|---|---|
| Employment Pass | Foreign professionals, managers and executives with a job offer | Fixed monthly salary from S$5,600, rising with age to S$10,700 at 45 and above; COMPASS points as well | No quota, no levy | Available for eligible family members |
| S Pass | Foreign employees with a job offer, at the associate professional and technician level | Fixed monthly salary from S$3,300, rising with age to S$4,800 at 45 and above | Quota and monthly levy | Dependant's Pass when the fixed monthly salary is at least S$6,000 |
| Work Permit | Semi-skilled workers from approved source countries in construction, manufacturing, marine shipyard, process and services | No minimum salary; age 18 to below 62 at application | Quota and monthly levy | Not available |
Pass types and rules as stated on MOM's Employment Pass, S Pass and Work Permit pages, amounts for all sectors except financial services, checked 5 November 2026.
| Pass and sector | Minimum now | At age 45 and above now | Minimum for new applications from 1 January 2027 | At age 45 and above from 1 January 2027 |
|---|---|---|---|---|
| Employment Pass, all except financial services | S$5,600 | S$10,700 | S$6,000 | S$11,500 |
| Employment Pass, financial services | S$6,200 | S$11,800 | S$6,600 | S$12,700 |
| S Pass, all except financial services | S$3,300 | S$4,800 | S$3,600 | S$5,100 |
| S Pass, financial services | S$3,800 | S$5,650 | S$4,000 | S$5,650 |
Qualifying salaries by pass and sector, with the step-up for new applications from 1 January 2027 and for renewals of passes expiring from 1 January 2028, checked 5 November 2026.
The Employment Pass minimum for all sectors except financial services rises by S$6,000 - S$5,600 = S$400 a month, which is S$400 x 12 = S$4,800 a year, or 7.1% (400 / 5,600). An Employment Pass lasts up to 2 years for a first-time candidate and up to 3 years on renewal.
What does COMPASS require for an Employment Pass?
An Employment Pass application earns 40 points on COMPASS after it meets the qualifying salary, unless an exemption applies (MOM, as of 5 November 2026). A candidate who misses the qualifying salary is ineligible whatever the COMPASS score. MOM scores six criteria: C1 Salary, C2 Qualifications, C3 Diversity, C4 Support for local employment, C5 Skills bonus (Shortage Occupation List) and C6 Strategic Economic Priorities bonus.
Three conditions exempt a candidate from COMPASS: a fixed monthly salary of at least S$22,500, an overseas intra-corporate transferee, or a role of 1 month or less. The Fair Consideration Framework job advertising requirement still applies before a new Employment Pass application. MOM's Self-Assessment Tool checks a candidate before you apply.
What does an S Pass holder cost an employer each month?
Each S Pass holder carries a levy of S$650 a month in every sector and tier since 1 September 2025, or S$21.37 a day for a month not worked in full (MOM, as of 5 November 2026). The levy starts the day the S Pass is issued and ends when the pass is cancelled or expires. MOM recommends paying by GIRO.
| Item | Calculation | Result | Basis |
|---|---|---|---|
| Monthly levy | Harmonised rate | S$650 | MOM, since 1 September 2025 |
| Annual levy for one holder | 650 x 12 | S$7,800 | Derived from the monthly rate |
| Daily levy rate | (650 x 12) / 365 = 21.3699, rounded up to the cent | S$21.37 | MOM formula for a part month |
| Levy for a holder who works 10 days in a month | 21.37 x 10 | S$213.70 | Daily rate times days |
Worked S Pass levy using MOM's daily-rate formula, checked 5 November 2026.
The Workplace Safety and Health Act makes employers assess risks, train staff and report accidents within 10 days
As an employer you assess risks, keep the work environment and machinery safe, prepare for emergencies, train and supervise workers, and submit an incident report to MOM within 10 days of a reportable accident (MOM, as of 5 November 2026). The Act also places duties on principals, occupiers and employees.
| Duty holder | Duty MOM lists | Protects | Trigger |
|---|---|---|---|
| Employer | Risk assessments and control measures, a safe work environment, safe machinery and processes, emergency systems, instruction, training and supervision | Employees, workers under your direction and people affected by their work | Always |
| Principal | Make sure the contractor is able to perform the work and that equipment used is safe; the principal takes on employer duties when it instructs how the work is done | The contractor's workers | Engaging a contractor under a contract for service |
| Occupier | Keep the workplace, pathways, machinery, plant, articles and substances safe | Anyone on the premises, including non-employees | Control of the premises, or holding the certificate of registration for a factory |
| Employee | Follow safe work procedures, avoid unsafe or negligent acts, use the personal protective equipment provided without tampering | The employee and people working nearby | Always |
Core duties under the WSH Act by duty holder, from MOM's responsibilities page, checked 5 November 2026.
Which accidents need an incident report, and by when?
You report a work accident to MOM within 10 days when it leaves an employee on outpatient or hospitalisation leave, on light duty or dead, and an unreported accident carries a fine up to S$10,000 for a first offence (MOM, as of 5 November 2026). A second or later offence carries a fine up to S$20,000, jail up to 6 months, or both. The 10 days run from the accident for a fatal case and from your first notice of the accident for a non-fatal case.
| Event | Who reports | Notify MOM | Incident report (iReport) deadline |
|---|---|---|---|
| Employee injured, with outpatient or hospitalisation leave or light duty | Employer | Not stated for non-fatal cases | Within 10 days of the employer's first notice |
| Employee dies from a work accident | Employer | As soon as reasonably practicable | Within 10 days of the accident |
| Self-employed person or member of the public dies because of works at a workplace | Workplace occupier | As soon as reasonably practicable | Within 10 days |
| Self-employed person or member of the public is hospitalised because of works | Workplace occupier | As soon as reasonably practicable | Notification only on the page read |
| Occupational disease diagnosed | Employer (platform operator for platform workers) | Not stated | Within 10 days of the diagnosis |
| Dangerous occurrence, such as a mobile crane toppling | Workplace occupier | As soon as reasonably practicable | Within 10 days of the occurrence |
Reporting duties by event type as stated on MOM's what-and-when-to-report page, checked 5 November 2026.
A traffic accident while an employee travels for work, or on company transport between home and the workplace, is reportable. A traffic accident in the employee's own car or on public transport between home and work is not.
What penalties does the WSH Act carry?
A company convicted of a general WSH Act offence faces a fine up to S$500,000 for a first conviction and S$1 million for a repeat, and an individual faces up to S$200,000, 2 years in prison, or both (MOM, as of 5 November 2026). Ignoring a Stop Work Order costs more per day than ignoring a Remedial Order.
| Offence | Maximum fine | Additional daily fine | Maximum imprisonment |
|---|---|---|---|
| Not complying with a Remedial Order | S$50,000 | S$5,000 for each day of continued offence | 12 months, either or both |
| Not complying with a Stop Work Order | S$500,000 | S$20,000 for each day of continued offence | 12 months, either or both |
| General offence, individual, first conviction | S$200,000 | None stated | 2 years, either or both |
| General offence, individual, repeat | S$400,000 | None stated | 2 years, either or both |
| General offence, company, first conviction | S$500,000 | None stated | Not applicable |
| General offence, company, repeat | S$1 million | None stated | Not applicable |
Maximum penalties under the WSH Act as listed by MOM, checked 5 November 2026.
The Commissioner compounds an offence, instead of prosecuting, for a sum capped at half the maximum fine or S$5,000, whichever is lower. For a first corporate conviction with a S$500,000 maximum, half is S$250,000, so the cap is S$5,000. For a hypothetical offence with an S$8,000 maximum, half is S$4,000, which is below S$5,000, so the cap is S$4,000.
Work injury compensation insurance covers manual workers and staff earning S$2,600 or less, with fixed payout limits
You buy work injury compensation insurance for every employee doing manual work and every non-manual employee earning S$2,600 or less a month, and failing to insure is an offence with a fine up to S$10,000, jail up to 12 months, or both (MOM, as of 5 November 2026). The test excludes overtime, bonus, annual wage supplement, productivity incentive payment and allowances, and it covers local and foreign employees alike.
| Employee group | Insurance required | Salary test | If a valid claim arrives |
|---|---|---|---|
| Employee doing manual work | Yes | None, any salary level | Insurer reimburses; you pay medical leave wages and expenses first |
| Non-manual employee earning S$2,600 or less a month | Yes | Excludes overtime, bonus, annual wage supplement, productivity incentive payment and allowances | Insurer reimburses; you pay first |
| Non-manual employee earning above S$2,600 a month | Your choice | Same exclusions | You compensate the employee whether or not you insured |
| Independent contractor, self-employed person, domestic worker, uniformed personnel | Not covered by WICA | Not applicable | Not applicable |
Insurance duty by employee group from MOM's insurance and coverage pages, checked 5 November 2026.
Policies from 1 January 2021 come from a designated insurer on MOM's compulsory terms. MOM asks you to finalise the contract and give the insurer the information required at least 21 days before the policy starts.
What does work injury compensation pay out?
For accidents from 1 November 2025, medical expenses are capped at S$53,000 or 1 year from the accident, whichever comes first, and a permanent incapacity lump sum runs from S$116,000 to S$346,000 multiplied by the percentage of incapacity (MOM, as of 5 November 2026). Medical leave wages are compensation, so they are not taxable and carry no CPF.
| Compensation | Accidents before 1 November 2025 | Accidents from 1 November 2025 | Increase |
|---|---|---|---|
| Medical expenses, maximum | S$45,000 | S$53,000 | S$8,000 |
| Permanent incapacity, minimum | S$97,000 x % incapacity | S$116,000 x % incapacity | S$19,000 |
| Permanent incapacity, maximum | S$289,000 x % incapacity | S$346,000 x % incapacity | S$57,000 |
| Death, minimum | S$76,000 | S$91,000 | S$15,000 |
| Death, maximum | S$225,000 | S$269,000 | S$44,000 |
Compensation limits by accident date from MOM's types-of-compensation page, with the increase column derived by subtraction, checked 5 November 2026.
For 40% permanent incapacity, the limits are 116,000 x 0.40 = S$46,400 and 346,000 x 0.40 = S$138,400. When the doctor awards 100% incapacity, MOM adds 25%, so the limits become 116,000 x 1.25 = S$145,000 and 346,000 x 1.25 = S$432,500. The amount within each range is average monthly earnings x age multiplying factor x % incapacity, and the insurer pays within 21 days of the notice of assessment or computation.
| Leave type | Days | Employee gets | Employer pays |
|---|---|---|---|
| Hospitalisation leave | Up to 60 days | Full average monthly earnings | Full average monthly earnings |
| Hospitalisation leave | 61st day to 1 year from the accident | 2/3 of average monthly earnings | 2/3 of average monthly earnings |
| Outpatient medical leave | Up to 14 days | Full average monthly earnings | Full average monthly earnings |
| Outpatient medical leave | 15th day to 1 year from the accident | 2/3 of average monthly earnings | 2/3 of average monthly earnings |
Medical leave wages under WICA by leave type, from MOM's types-of-compensation page, checked 5 November 2026.
MOM computes average monthly earnings over the 12 months before the accident. It includes overtime pay and bonuses and excludes transport allowances and reimbursements. MOM's own example of 10 outpatient days plus 71 hospitalisation days pays full earnings for 10 + 60 = 70 days and two-thirds for the remaining 11 days.
What does an employer do after a work injury?
You submit an incident report within 10 days, pay medical leave wages by the next payday, and reimburse medical bills the employee paid within 14 days of receiving the original bills (MOM, as of 5 November 2026). For a fatal accident, you notify MOM as soon as possible. Inform your insurer as soon as possible so the insurer reimburses you.
Pay the injured employee first and claim from the insurer later. Failing to pay compensation is an offence with a fine up to S$15,000, jail up to 12 months, or both. An employee claims within 1 year of the accident even after leaving your company or after a work pass is cancelled. You dispute a claim you think is untrue or not work related by writing to the designated insurer or MOM with evidence.
MOM sets sector ceilings for foreign workers and progressive wage rules for named sectors
MOM caps the share of Work Permit and S Pass holders in your workforce by sector, from 35% in services to 83.3% in construction and process, and runs progressive wage rules for seven named sectors plus occupational rules for administrators and drivers (MOM, as of 5 November 2026). Your sector follows from the business activity you declare to MOM the first time you apply for a Work Permit or S Pass.
| Sector | Dependency ratio ceiling (Work Permit plus S Pass) | S Pass cap | PRC Work Permit sub-quota |
|---|---|---|---|
| Services | 35% | 10% | 8% |
| Manufacturing | 60% | 15% | 25% |
| Marine shipyard | 75% | 15% | Not stated |
| Construction | 83.3% | 15% | Not stated |
| Process | 83.3% | 15% | Not stated |
Foreign worker ceilings as a share of total workforce, from MOM's S Pass quota and levy requirements page, checked 5 November 2026.
A services company with a total workforce of 40 holds at most 40 x 0.35 = 14 Work Permit and S Pass holders together, at most 40 x 0.10 = 4 of them on S Pass, and at most 40 x 0.08 = 3.2 PRC Work Permit holders. MOM computes the quota from the average number of local employees over the last 3 months, using CPF data, so late or unpaid CPF contributions and salary declarations affect the quota, and higher levy tiers follow in some cases.
Which sectors have a Progressive Wage Model?
MOM publishes Progressive Wage Model requirements for the cleaning, security, landscape, lift and escalator, retail, food services and waste management sectors, plus occupational progressive wages for administrators and drivers (MOM, as of 5 November 2026). Each sector page carries its own wage and training requirements. This guide does not reproduce those amounts, so read the page for your sector before you set pay.
The Workplace Fairness Act starts on a gazetted date, targeted for end-2027, and requires a written grievance process
The Workplace Fairness Act 2025 (Act 8 of 2025) comes into operation on a date the Minister appoints by Gazette notification, MOM and TAFEP target the end of 2027, and employers with fewer than 25 employees fall outside the Act except for the fair consideration duty in section 26 (SSO, as of 5 November 2026). Parliament passed the Act on 8 January 2025 and the President assented on 3 February 2025. The Act bars adverse employment decisions on five groups of protected characteristics. The Tripartite Guidelines on Fair Employment Practices keep covering other characteristics.
| Milestone | Date or threshold | What it means for an employer | Source |
|---|---|---|---|
| Workplace Fairness Act passed | 8 January 2025; published 13 February 2025 | Sets the protected characteristics and the employer duties | SSO, Act 8 of 2025 |
| Commencement | A date the Minister appoints by Gazette notification (section 1) | The duties apply from that date | SSO, Act 8 of 2025 |
| Target start | End of 2027 | MOM and TAFEP name this as the planned start | MOM press release, TAFEP |
| Small-employer exemption | Fewer than 25 employees (section 4) | The Act does not apply, except section 26 on fair consideration for work pass applications | SSO, Act 8 of 2025 |
| Dispute Resolution Bill passed | 4 November 2025 | Sets mediation and the claims route | MOM press release |
| Claims forum | Up to and including S$250,000 | Employment Claims Tribunals hear the claim; claims above S$250,000 go to the High Court | MOM press release |
Workplace Fairness Act timeline from the Act on Singapore Statutes Online and MOM press releases, checked 5 November 2026.
MOM's second reading speech adds that the exemption for small firms is reviewed five years after the law starts, and that the Tripartite Guidelines continue to apply to those firms.
Which characteristics does the WFA protect?
The WFA protects five groups: age; nationality; sex, marital status, pregnancy status and caregiving responsibilities; race, religion and language ability; and disability and mental health conditions. It covers hiring, appraisal, training, promotion and dismissal. TAFEP publishes the employer guide.
What does a grievance process look like under the WFA?
The Act requires a written process that commits you to inquire into each grievance, review it, tell the employee the outcome, keep written records for a stated period and protect confidentiality (SSO, section 27, as of 5 November 2026). You inform all employees of the process in writing. Retaliation against an employee who raises a grievance is prohibited by section 28. A worker uses the firm's process first, then mediation, then the Tribunals or the High Court.
What penalties does the WFA carry?
A civil contravention draws an administrative penalty set in regulations, and a serious civil contravention draws a court-ordered civil penalty of up to S$50,000 for a first order against a company and up to S$250,000 for later orders (SSO, sections 29 to 34, as of 5 November 2026). For an individual employer, the civil penalty is up to S$10,000 for a first order and up to S$50,000 for later orders.
| Tier | Trigger | Penalty | Act section |
|---|---|---|---|
| Administrative penalty | Civil contravention, including one discriminatory act, a discriminatory advertisement, no written grievance process, failing to inform employees of it, or retaliation | A prescribed amount per act, set in regulations and not stated in the Act | 29, 31 |
| Directions | An authorised officer orders you to end a contravention | Ignoring a direction without reasonable excuse is an offence: fine up to S$5,000 for a company, or fine up to S$2,500, jail up to 6 months, or both for an individual | 33 |
| Civil penalty, first order | Serious civil contravention: repeat discrimination, discrimination directed by a discriminatory policy, retaliation by dismissal, or repeat retaliation within a year | Up to S$50,000 for a company, partnership or association; up to S$10,000 for an individual | 30, 34 |
| Civil penalty, later orders | Same serious contraventions | Up to S$250,000 for a company, partnership or association; up to S$50,000 for an individual | 30, 34 |
Workplace Fairness Act penalty tiers from the Act text on Singapore Statutes Online, checked 5 November 2026.
A company with a first and a second civil penalty order faces up to S$50,000 + S$250,000 = S$300,000 in total. The Commissioner brings the court action with the Public Prosecutor's consent within 6 years of the contravention, and does not bring it where a contravention notice was already issued for the same act. An officer who consents to or connives at a contravention is treated as having committed it alongside the company.
Employer duties carry deadlines from the last day of employment to two years, ordered in one table
The shortest employer deadline is the last day of employment, and the longest is the 2-year payslip record. These deadlines apply from the first hire, a point the guide to starting a business in Singapore raises for new employers.
| Deadline | Employer duty | Trigger | Source |
|---|---|---|---|
| Last day of employment | Pay final salary when notice is served | Resignation with notice | MOM, Paying salary |
| Within 3 working days | Give the itemised payslip after pay | Salary paid | MOM Employer's Toolkit |
| Within 3 working days | Pay final salary when payment on the last day is not possible | Dismissal or employer termination | MOM, Paying salary |
| Within 5 working days | Notify MOM of a retrenchment (10 or more employees) | Affected employees notified | MOM, Mandatory retrenchment notifications |
| Within 7 days | Pay salary after the salary period; pay final salary if no notice was served | Salary period ends, or resignation without notice | MOM, Paying salary |
| 1 week | Keep suspension to one week unless the Commissioner for Labour approves; seek approval at least 3 working days before the week ends | Inquiry into misconduct | MOM, Termination due to misconduct |
| Within 10 days | Submit the incident report (iReport) for a reportable work accident | Accident (fatal) or first notice (non-fatal) | MOM, Work-related accidents |
| Within 14 days | Issue KETs; pay overtime; reimburse medical bills an injured employee paid | First day of employment; salary period ends; original medical bills received | MOM Employer's Toolkit, Hours of work, WICA employer duties |
| At least 21 days before the policy starts | Finalise the work injury insurance contract and give the insurer the required information | Policy start date | MOM, Work injury compensation insurance |
| Up to 30 days | Withhold a foreign employee's final pay for tax clearance | Comptroller of Income Tax notified | MOM, Paying salary |
| End of the month | Pay CPF contributions | Wages paid | MOM, Employer's CPF contributions |
| 1 month | Employee files a wrongful dismissal claim | Last day of employment | MOM, Wrongful dismissal |
| 2 years, then 1 year | Keep the latest 2 years of payslips; for ex-employees keep for 1 year after exit | Payslips issued, employee leaves | MOM Employer's Toolkit |
Employer deadlines in the Employment Act guidance ordered from shortest to longest, checked 5 November 2026.
General guidance as of 5 November 2026, not legal advice.