The Singapore Employment Act covers the basic terms and conditions of employment for most workers in Singapore, including working hours, salary payment timelines, leave entitlements, and termination procedures. It is the foundational piece of labour legislation that every employer and employee in Singapore needs to understand before signing a contract or making a hiring decision.
Key Takeaways
- The Employment Act is Singapore’s main labour law, protecting most employees earning up to S$2,600/month, and all non-workmen earning up to S$4,500/month for core provisions.
- It sets minimum standards for working hours, salary payment, rest days, leave entitlements, and termination notice.
- Not everyone is covered equally directors, domestic workers, and public servants fall outside its scope.
- Employers who misunderstand coverage boundaries risk costly disputes and compliance failures.
- Both employees and business owners benefit from knowing exactly where the Act applies and where it stops.
Who the Employment Act Actually Protects
Singapore’s Ministry of Manpower has consistently reinforced that the Act applies to employees under a contract of service but not uniformly. There are two tiers worth knowing.
The Part IV provisions (covering rest days, hours of work, and overtime pay) apply specifically to workmen earning up to S$4,500/month and non-workmen earning up to S$2,600/month. The core provisions covering salary, sick leave, annual leave, and termination apply more broadly to all employees regardless of salary, with a few exclusions.
Those excluded from the Act entirely include:
- Seafarers and domestic workers (covered under separate legislation)
- Public servants
- Statutory board employees with their own schemes
According to MOM’s 2023 Labour Market Report, Singapore’s resident workforce stood at approximately 2.3 million. The vast majority fall within Employment Act coverage, yet MOM continues to receive thousands of salary-related complaints annually suggesting that many employees still do not know their rights.
If you want a broader read on your entitlements as a worker, knowing your legal rights at work is a solid starting point before you engage HR or legal counsel.
Working Hours and Overtime Under the Act
For employees covered under Part IV, the Employment Act sets a clear ceiling: no more than 8 hours per day or 44 hours per week. Anything beyond that is overtime, and it must be compensated at a minimum of 1.5 times the hourly basic rate.
There is a cap on overtime hours too employees cannot be required to work more than 72 overtime hours per month without their consent.
What most people miss is that managerial and executive employees earning above the Part IV threshold are not entitled to overtime pay under the Act. Their hours are governed by their employment contract, not statute. This distinction trips up many first-time employers who assume the Act covers all staff equally.
Salary: Payment Timelines and Deductions
The Employment Act is specific about when salaries must be paid:
- Basic salary: Within 7 days after the end of the salary period
- Overtime pay: Within 14 days after the end of the salary period
Employers cannot make unauthorised deductions from salary. Permitted deductions are limited to CPF contributions, absence from work, accommodation or amenities agreed in writing, and recovery of salary advances.
A common compliance gap we have observed: employers who delay salary payment assuming it is minor. Under the Act, late payment can constitute an offence even if the employee has not formally complained.
Leave Entitlements
The Act mandates minimum leave entitlements that scale with years of service:
| Years of Service | Annual Leave (Days) |
| 1 year | 7 days |
| 2 years | 8 days |
| 3 years | 9 days |
| Up to 8+ years | 14 days |
Beyond annual leave, employees are entitled to 14 days paid sick leave (with hospitalisation) and 60 days hospitalisation leave per year, after completing 3 months of service. Outpatient sick leave without hospitalisation is capped at 14 days.
Maternity, paternity, and childcare leave are governed separately under the Child Development Co-Savings Act, though they operate alongside Employment Act protections.
Termination, Notice, and Wrongful Dismissal
The Employment Act requires both parties to give proper notice of termination, or pay salary in lieu. Notice periods are tied to length of service:
- Less than 26 weeks: 1 day’s notice
- 26 weeks to 2 years: 1 week’s notice
- 2 to 5 years: 2 weeks’ notice
- 5 years and above: 4 weeks’ notice
The Act also protects employees from wrongful dismissal defined as dismissal without just cause or excuse. Employees who believe they have been wrongfully dismissed can file a claim with the Employment Claims Tribunal within one month of their last day.
One nuance that employers often overlook: even during a probation period, notice is still required unless the contract explicitly states otherwise. Assuming probationary staff can be let go without notice is a costly mistake.
If your business is navigating a complex termination or your employment contracts need review, getting a contract reviewed before disputes escalate can save significant time and legal exposure.
What the Act Does Not Cover (And What Should Fill the Gap)
The Employment Act establishes minimums, not maximums. Employers can and should offer better terms than what the Act requires. However, for matters the Act is silent on equity vesting, commission structures, intellectual property ownership, restraint of trade clauses your employment contract carries the full weight.
This is where many businesses, especially SMEs, are exposed. If a contract is poorly drafted or relies on outdated templates, the Act will not protect you from disputes. For comprehensive employment contract support and other labour-related corporate matters, Remoteforce’s legal services offer practical, Singapore-specific guidance for businesses of all sizes.
The Bottom Line
The Singapore Employment Act is not just a compliance checklist it reflects a minimum standard of fair treatment that every working relationship in Singapore should meet. Business owners need to build contracts and HR policies that sit comfortably above that floor. Employees need to know where that floor actually is.
When in doubt about whether a clause in your contract aligns with the Act, do not wait for a dispute to find out.
FAQ: What Does the Employment Act Cover in Singapore?
Does the Employment Act apply to part-time employees?
Yes. Part-time employees (those working under 35 hours per week) are covered under the Employment Act and the Part-Time Employment Regulations. They receive pro-rated entitlements for annual leave, sick leave, and public holidays based on hours worked relative to a full-time equivalent.
Are managers and executives covered by the Singapore Employment Act?
Managers and executives are covered for core provisions such as salary protection, sick leave, and termination notice. However, they are excluded from Part IV protections like overtime pay and rest day entitlements if they earn above the relevant salary threshold.
What happens if an employer does not comply with the Employment Act?
Non-compliance can result in financial penalties, back-payment orders, and in serious cases, criminal prosecution. Employees can file claims with MOM or the Employment Claims Tribunal. Employers found guilty of salary offences face fines of up to S$15,000 per charge for first-time offenders.
Can an employment contract offer less than what the Employment Act provides?
No. Any contractual term that gives an employee less than the minimum entitlements under the Employment Act is void and unenforceable. The Act sets the floor; contracts must meet or exceed it.
How do I know if my role falls under Part IV of the Employment Act?
Part IV applies to workmen (those doing manual labour) earning up to S$4,500/month, and non-workmen earning up to S$2,600/month. If you are unsure of your classification, check your job description against MOM’s definitions or consult an employment lawyer for a formal assessment.
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