Latest Singapore Labor Laws and Regulations

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1. ‌Labor Law Overview‌
‌Primary Reference Acts/Regulations:‌
Singapore primarily refers to the Employment Act for employment regulations. This Act mainly stipulates employment rights such as leave, fair employment, and employment disputes. However, in certain specific situations, there are special provisions for different employee levels/positions regarding regulations like rest days, overtime, and working hours. For further details, please refer to the Singapore Ministry of Manpower website: www.mom.gov.sg.

1.1 ‌Employment Contract Signing‌
‌Types of Employment Contracts:‌ Both fixed-term and indefinite-term employment contracts are permitted and common. Similar to indefinite-term contract employees, fixed-term contract employees are also entitled to statutory benefits under the Employment Act.

1.2 ‌Probation Period‌

• Probation Period Duration:‌ The Employment Act does not explicitly stipulate a probation period. The common local practice is a probation period of 3-6 months.

• During the probation period, salary, annual leave, and other benefits must remain consistent with those after the probation period. Employee benefits cannot be reduced due to the probation period.

• During the probation period, employers may appropriately shorten the notice period, with 7 days being common.

1.3 ‌Notice Period‌

• Notice Period Duration:‌ If the notice period is specified in the employment contract, both the employer and the employee must fulfill their respective obligations according to the agreed notice period or provide payment in lieu of notice to one party. If both parties agree, the notice period can also be waived in writing.

• Typically, a notice period of 1 month is common. If not specified in the employment contract, the notice period can be referenced as follows:

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| Length of Service | Notice Period |

| :--- | :--- |

| Less than 26 weeks | 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 |

1.4 ‌Working Hours & Overtime‌

If employees fall under the protected categories in Part IV of the Employment Act, specific working hours are regulated, and they are entitled to overtime pay and rest days. Part IV of the Employment Act excludes managers and executives. For further details, please refer to www.mom.gov.sg.

• Maximum Overtime Limit:‌ Normally cannot exceed 12 hours per day. If the employer requires an employee to work more than 12 hours per day or more than 72 hours of overtime per month, the employer must apply for an overtime exemption from the relevant authorities.

• Overtime Applicability:‌ Refers to all work performed outside normal working hours (excluding rest periods). Employees meeting the following conditions are eligible for overtime pay: Non-workmen earning a monthly salary of ≤ SGD 2,600. The salary cap for calculating overtime pay for non-workmen is SGD 2,600 or SGD 13.60 per hour. Workmen earning a monthly income of up to SGD 4,500 or less.

• Overtime Pay Calculation Standard:‌ Hourly basic wage * 1.5 * Overtime hours

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| Employee Type | Hourly Basic Wage Calculation Logic |

| :--- | :--- |

| Monthly-paid employees | (12 x Monthly basic wage) / (52 x 44) |

| Daily-rated employees | Daily basic wage / Standard daily working hours |

| Piece-rated employees | Total weekly wages calculated based on the basic wage rate / Total hours worked per week |

• Other:Common working hours for office employees in Singapore are Monday to Friday, 9 AM to 6 PM or 7 PM, depending on the industry and company policy. It is also common for Singaporean employees to work 9 to 10 hours on weekdays and half a day on Saturdays.

1.5 ‌Types of Leave and Usage Rules‌
‌Annual Leave‌
Employees are entitled to annual leave after completing 3 months of service. The statutory standard entitles employees to at least 7 days of annual leave, with an additional day granted for each completed year of service, up to a maximum of 14 days.

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Sick Leave

Employees are entitled to paid outpatient sick leave and paid hospitalization leave after completing 3 months of service. Paid outpatient sick leave is up to 14 days, and paid hospitalization leave is up to 60 days. The 60 days of paid hospitalization leave include the 14 days of paid outpatient sick leave. Paid sick leave during the 3-6 month service period is pro-rated based on the length of service. Upon completing 6 months, employees are entitled to the full benefits.

• Sick Leave Application Conditions:Must be certified by a doctor registered under the Medical Registration Act or the Dental Registration Act that the employee is unfit for work.

• Calculation of Entitled Sick Leave Days:

| Length of Service (Months) | Paid Outpatient Sick Leave (Days) | Paid Hospitalization Leave (Days) |

| :--- | :--- | :--- |

| 3 | 5 | 15 |

| 4 | 8 | 30 |

| 5 | 11 | 45 |

| 6 and above | 14 | 60 |

‌*Maternity Leave*

* Female employees employed for more than 3 months are eligible for paid maternity leave benefits under certain conditions. Eligible female employees are entitled to a total of 16 weeks of leave. Employers cannot dismiss an employee on maternity leave during this period.

‌*Paternity Leave*

• Effective January 1, 2024, eligible working fathers are entitled to 4 weeks of paid paternity leave.

• The child is a Singapore Citizen born on or after January 1, 2024.

• The father is or was legally married to the child's mother during the period from conception to delivery.

• The father has served the employer continuously for at least 3 months before the child's birth.

‌*Shared Parental Leave*

Allows eligible parents to share part of the mother's maternity leave. Under this scheme, the mother can transfer up to 4 weeks of her 16-week maternity leave to the father, provided both parents meet the eligibility criteria. If the father takes the full 4 weeks, the mother's maternity leave is reduced to 12 weeks.

‌*Childcare Leave*

• Eligible working parents of Singapore Citizen children are entitled to 6 days of paid childcare leave. The following conditions must be met to qualify:

• The child is a Singapore Citizen.

• The youngest child is under 7 years old.

• The parent has served the employer continuously for at least 3 months.

*Under the Employment Act, parents of non-citizen children are entitled to 2 days of childcare leave per year.

1.6 ‌Work Visa Requirements and Process‌
The Singapore government introduced the COMPASS Framework effective September 1, 2023, raising the requirements for Employment Pass (EP) applications for foreign workers. This model assesses applicants and employers based on four dimensions (salary, qualifications, firm diversity, support for local employment) and assigns points. Scoring 40 points or above qualifies for EP application.

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‌*Work Visa Application Process*

It is necessary to provide the employee's passport copy, salary, position, JD, and educational background to a visa consultant in advance for a COMPASS preliminary assessment and scoring. If the conditions are met, the application can proceed. The overall estimated processing period is 3 months (subject to actual operations; the following process is for reference only).

| Stage | Estimated Duration | Event Overview | Standard Actions |

| Visa Assessment | 10 working days | Material Collection & Work Visa Assessment | Collect preliminary assessment materials from the employee, including resume, current position & JD & salary, date of birth, etc. Assess work visa eligibility via SAT/COMPASS. |

| Material Preparation & Submission | 14 working days | Post job advertisement on designated website | Overseas recruitment during advertisement posting. Details include: Advertisement ID, Job Title, Advertisement posting and expiry dates. |

| | 7-10 working days | Prepare detailed visa application materials | Fill EP/SPass Application. Required documents: Passport page scan, highest academic degree certificate and graduation certificate scans (if obtained in China, English academic degree certification documents are required). |

| Result Confirmation | 10 working days | Review and confirm application materials; Progress tracking | Generally, results are issued within 10 working days after material submission. |

| | 5 working days | Apply for Electronic Visit Pass (e-Pass) to enter Singapore | Employer informs of EP issuance; employee receives temporary visa information and appointed time for fingerprint registration, etc. |

| Entry to Singapore | | Enter Singapore | Applicant provides address & mobile number; work pass card (electronic) is issued. |

‌*Special Note:*Effective immediately, the Nominal Employer (EOR) model is not permitted to provide work visa sponsorship services to foreigners. Non-compliance constitutes a legal offense.

2. ‌Compensation and Benefits‌

2.1 ‌Statutory Social Security‌
‌Central Provident Fund (CPF)‌ is a comprehensive social security savings plan for Singapore Citizens or Permanent Residents, covering retirement, housing, and healthcare primarily. Foreign employees holding work permits are not required to contribute. CPF contribution rates depend on several factors, including age, residency status, and type of income. Contribution rates are subject to change.
The table below lists the contribution rates for employees who are Singapore Citizens or Singapore Permanent Residents for 3 years or more, with a monthly income of SGD 750 and above (capped at SGD 6,800).

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| Employee Age | Employer Contribution Rate (%) | Employee Contribution Rate (%) | Total (%) |

| :--- | :--- | :--- | :--- |

| < 55 | 17.0 | 20.0 | 37.0 |

| 55 - 60 | 15.0 | 16.0 | 31.0 |

| 60 - 65 | 11.5 | 10.5 | 22.0 |

| 65 - 70 | 9.0 | 7.5 | 16.5 |

| >70 | 7.5 | 5.0 | 12.5 |

• The employer's maximum monthly contribution for Ordinary Wages is capped at ‌**SGD 1,156**‌.

• The employee's maximum monthly contribution for Ordinary Wages is capped at ‌**SGD 1,360**‌.

‌**Skills Development Levy (SDL)**‌

Employers must pay the Skills Development Levy for all employees. The SDL is credited to the national Skills Development Fund after payment, intended to enable employers to provide corresponding training to employees through the national education and training system. The SDL contribution rate is 0.25% of the monthly salary. The minimum payment is SGD 2 for employees earning less than SGD 800 per month, and the maximum payment is SGD 11.25 for employees earning more than SGD 4500 per month.

‌**Worker's Compensation Insurance**‌

In Singapore, employers must provide work injury compensation for manual workers and all non-manual workers earning a monthly salary not exceeding SGD 2600. For employees not falling into the above two categories, providing work injury insurance is at the employer's discretion.

*The above social security rates are for reference only; actual rates are subject to official announcements.*

2.2 ‌Non-statutory Benefits‌
* ‌Comprehensive Allowances:‌ Travel/transportation/meal allowances may be provided.
* ‌Relocation Allowance:‌ Provide relocation allowances for foreign employees, including but not limited to paid personal effects shipment, paid air tickets, housing allowance.

2.3 ‌Commercial Insurance‌
* There are no statutory requirements. Providing basic supplementary group health insurance is common. It typically covers the following:
* Group Hospital and Surgical Insurance
* Group Outpatient Specialist
* Group Outpatient Clinical
* Personal Accident

2.4 ‌Personal Income Tax‌
‌Residents‌
The chargeable income (after personal reliefs) of resident individuals is taxed at progressive rates. The current rates for the Year of Assessment 2024 (income year 2023) are shown below.

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| Chargeable Income (SGD) | For YA 2024 and subsequent YAs |

| :--- | :--- |

| Exceeding (Col 1) | Not Exceeding | Tax Payable (SGD) | Tax Rate on Excess (%) |

| 0 | 20,000 | - | - |

| 20,000 | 30,000 | - | 2.00 |

| 30,000 | 40,000 | 200 | 3.50 |

| 40,000 | 80,000 | 550 | 7.00 |

| 80,000 | 120,000 | 3,350 | 11.50 |

| 120,000 | 160,000 | 7,950 | 15.00 |

| 160,000 | 200,000 | 13,950 | 18.00 |

| 200,000 | 240,000 | 21,150 | 19.00 |

| 240,000 | 280,000 | 28,750 | 19.50 |

| 280,000 | 320,000 | 36,550 | 20.00 |

| 320,000 | 500,000 | 44,550 | 22.00 |

| 500,000 | 1,000,000 | 84,150 | 23.00 |

| 1,000,000 | | 199,150 | 24.00 |

‌**Non-Residents**‌

Non-resident individuals are taxed at a flat rate of 24%, but employment income is taxed at a flat rate of 15% or at the resident progressive rates, whichever results in a higher tax amount. Remuneration of non-resident directors does not qualify for the reduced rate, and a 24% withholding tax (WHT) must be deducted from the remuneration paid to non-resident directors.

3. ‌Public Holidays‌
Considering consistency in holiday names, the official English names are used.
Specific holiday dates are subject to final official announcements.

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