Understanding the Employment Act Singapore (Updated for 2027)

The Employment Act Singapore is the country's main labour law, covering wages, working hours, leave and termination. Administered by the Ministry of Manpower (MOM), it changes regularly through amendments and related laws and guidelines, so HR teams need to track both what is mandatory and what is common practice.

In this guide, we cover who the Employment Act covers, its key provisions, statutory requirements and common practices, and practical ways to stay compliant in 2027. For the full employee lifecycle, see our HR's Guide to Managing Singapore Employment.

Who is Covered by the Employment Act Singapore?

The Employment Act Singapore covers every employee working under a contract of service, regardless of nationality, except seafarers, domestic workers and public servants. Since the 1 April 2019 amendments, this includes managers and executives at all salary levels.

A contract of service is an agreement, written or verbal, under which an employer hires a person as an employee. Independent contractors work under a contract for service instead and fall outside the Act; see our guide to independent contractors and employee vs contractor differences.

Coverage works in two layers:

The Act provides basic protections on working hours, overtime, rest days, annual leave, sick leave, public holidays, salary payment and termination. Employees outside it, such as domestic workers, are protected by other laws, including the Employment of Foreign Manpower Act. All employees, including managers and executives, can bring wrongful dismissal claims to the Employment Claims Tribunal (ECT) after mediation at the Tripartite Alliance for Dispute Management (TADM).

Key Provisions of the Employment Act Singapore

The Employment Act Singapore has many provisions that protect employees. They fall broadly into core provisions, which apply to all covered employees, and Part IV provisions, which give extra protection to lower-salaried and manual workers.

Core provisions

Contracts and Key Employment Terms (KETs):
Employers must give employees written Key Employment Terms within 14 days of the start of employment, for employees hired for 14 days or more. KETs cover items such as job title, duties, working hours, salary, leave and notice period. See our guide to employment contracts.

Itemised payslips and records:
Employers must issue itemised payslips at least once a month, together with salary payment or within three working days of it, and keep detailed employment records (MOM, itemised payslips). Our payslip template for Singapore lists the required items.

Working hours:
For most employees, normal hours are up to 9 hours a day or 44 hours a week (8 hours a day if they work more than five days a week). Work beyond this counts as overtime. Keep accurate attendance records and apply the same rules to flexible or remote work.

Annual leave:
Employees with at least three months of service get 7 days of paid annual leave in their first year, plus one day for every additional year of service, up to 14 days.

Public holidays:
Employees are entitled to 11 paid public holidays a year. When a holiday falls on a Sunday, the next working day becomes a paid holiday, which is why 2027 includes an extra holiday on Monday, 8 February (HCA Magazine on Singapore's 2027 public holidays).

See our Singapore public holidays guide.

Sick leave and hospitalisation leave:
Employees with at least three months of service who inform their employer within 48 hours of their absence are entitled to paid sick leave that rises with service:

The 60 days of hospitalisation leave include the 14 days of outpatient sick leave.

Termination:
Either party can end the contract by giving notice or paying salary in lieu of notice. The notice period is set by the contract. If the contract is silent, section 10 of the Employment Act sets the minimum:

Read next: HR's Guide to Managing Singapore Employment

Part IV Provisions

Part IV of the Employment Act Singapore gives extra protection on hours of work, rest days and overtime to workmen earning up to S$4,500 and non-workmen earning up to S$2,600 a month. Under Part IV:

• Employees can work up to 12 hours a day, including overtime.
• Overtime is capped at 72 hours a month and paid at least 1.5 times the hourly basic rate, within 14 days after the end of the salary period. For non-workmen, the overtime rate is capped at the S$2,600 salary level (S$13.60 an hour). Use our guide to computing overtime pay.
• Employees get one rest day a week, and work on a rest day is paid at higher rates.
• Employees should work no more than 6 consecutive hours without a break.

Statutory Requirements and Common Practices

The Employment Act Singapore and related laws make some rules binding, while tripartite guidelines from MOM, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) set out practices employers are expected to follow.

Salary and wages:
Singapore has no universal minimum wage. Firms that hire foreign workers must pay local employees at least the Local Qualifying Salary (LQS) for them to count towards the foreign worker quota. From 1 July 2026, the LQS rose from S$1,600 to S$1,800 a month for full-time employees and S$10.50 an hour for part-time employees. Sectors covered by the Progressive Wage Model have higher wage floors. Many employers also offer performance bonuses, allowances and the Annual Wage Supplement.

Health insurance:
The Employment Act does not require employers to provide health insurance, but many do. Employers must buy medical insurance for Work Permit and S Pass holders under the Employment of Foreign Manpower Act (MOM, S Pass medical insurance).

Maternity, paternity and parental leave:
Working parents of Singapore citizen children are entitled to:

If the child is not a Singapore citizen, mothers covered by the Employment Act with at least three months of service and fewer than two living children are entitled to 12 weeks of maternity leave, with the first 8 weeks paid by the employer. Learn more in our guide to Singapore maternity leave.

Flexible work arrangements:
Since 1 December 2024, employers must consider employees' formal requests for flexible work arrangements fairly and respond in writing within two months, under the Tripartite Guidelines on Flexible Work Arrangement Requests. See our guide to FWAs in Singapore and flexible working policy template.

Probation:
Probation is not required by law, but three to six months is common. Statutory sick leave and annual leave depend on length of service, not on whether probation has ended.

Termination:
Follow the notice period, termination clauses and any severance terms in the contract closely. Dismissal must not be wrongful, for example because of pregnancy or to deny an employee their benefits.

Retrenchment, layoffs and downsizing:
Employers with at least 10 employees must notify MOM within five working days after informing an employee of their retrenchment. Under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, employees with at least two years of service should receive retrenchment benefits, with the norm at two weeks' to one month's salary per year of service.

Retirement and re-employment:
From 1 July 2026, the minimum retirement age rose from 63 to 64 and the re-employment age from 68 to 69, under the Retirement and Re-employment Act. Employers must offer re-employment to eligible employees who reach retirement age. See MOM's retirement and re-employment guidance.

CPF contributions:
The Central Provident Fund (CPF) is Singapore's mandatory social security savings scheme for citizens and permanent residents. Contribution rates vary by age and are set by the CPF Board, and rates for senior workers have been rising in stages. See CPF contribution rates, what the 2027 CPF rate is and try our free CPF calculator.

Non statutory benefits & perks

Beyond the Employment Act Singapore's minimums, many employers offer benefits to attract and retain talent:

• Personal well-being: Programmes that support employees' physical and mental well-being, such as gym memberships, workshops, counselling and employee assistance programmes. See our guide to workplace mental health in Singapore.
• Travel allowance: Coverage for transport, meals and accommodation on business travel.
• Relocation package: Help with housing, transport, moving and settling-in costs for employees who relocate.
• Employee Stock Purchase Plans (ESPP): Discounted company share purchases, often through payroll deductions, which link pay to the company's performance and employee engagement.

When you offer these benefits, set eligibility rules in a written policy and check how each one is treated for tax; our guide to taxation in Singapore covers taxable benefits.

Strategies to Stay Compliant with the Employment Act Singapore

Breaching the Employment Act Singapore can lead to salary claims at the Employment Claims Tribunal, fines and, for repeat or serious offences, prosecution, as well as damage to your employer brand. These strategies help you stay compliant.

Leverage HRIS for accurate recordkeeping

A Human Resources Information System (HRIS) keeps employee records, leave, attendance and payroll in one place, so KETs, payslips, leave balances and overtime follow the Act's rules and are ready for an MOM inspection. Choose a system that harnesses automation for statutory calculations and keeps an audit trail of every change.

With Omni HR, statutory annual, sick and parental leave entitlements are set up by length of service in time-off management, attendance feeds overtime into payroll, and itemised payslips and CPF contributions are generated from the same employee record.

Read next: The Best HR Software in Singapore

Hire a local HR manager

A local HR manager who knows the Employment Act Singapore can interpret its provisions, advise on related laws such as the Retirement and Re-employment Act and the Workplace Fairness Act, and answer employees' questions about their rights. From July 2028, firms with 200 or more employees will need an HR lead certified by the Institute for Human Resource Professionals (IHRP); see our guide to Singapore's HR certification mandate.

Seek expert guidance

Employment lawyers and HR consultants can provide tailored advice and compliance audits, especially for retrenchment, wrongful dismissal claims and complex employment contracts. Regular training on employment law updates keeps your HR team current. Our HR compliance checklist and compliance checklist for companies are a good starting point.

Prepare for the 2027 changes

Several changes affect Singapore employers in 2027:

See our guides to the Workplace Fairness Bill and the latest compliance updates, and plan key dates with our HR Calendar 2027.

Stay Compliant with the Employment Act Singapore in 2027

With the Workplace Fairness Act arriving at the end of 2027, a review of the Act under way and recent changes to parental leave, the LQS and retirement ages, now is the time to audit your KETs, leave policies, overtime rules and grievance process against the Employment Act Singapore.

Omni’s all-in-one HR solution helps make these tasks streamlined and free of manual error to reduce the administrative burden on HR. With secure and centralized employee database, HR teams can easily store, update, and communicate employee information across departments and with employees. Our payroll solutions make it easier than ever to calculate accurate employee payments and tax calculations through automation that saves time and reduces errors. And with automated payroll information synchronization, end of month processing becomes a streamlined and seamless effort.

Start your free trial today and learn how Omni can help you remain compliant with regulations like the Employment Act Singapore and reduce your administrative workload for all of your People management needs.

Book a demo with our team now!