Singapore is gradually amending laws to overcome the workaholic culture. Having updated its labour laws since 1 April 2019 to ensure all employees are covered under the Employment Act, Singapore raised the salary cap for overtime pay for workers, adding 100,000 employees under this protection.
Here are the top 5 most-asked things you need to know to better calculate working hours and overtime pay in Singapore.
1. How is overtime pay calculated in Singapore?
Overtime work is classified as all work done in excess of the normal hours of work (excluding breaks).
Overtime pay is complusory in Singapore if an employee is:
- A workman earning a monthly basic salary of SG$4,500 or less.
- A non-workman earning a monthly basic salary of SG$2,600 or less.
In Singapore, an employee must be paid at least 1.5 times (their hourly basic rate of pay) for their overtime work.
Overtime Pay Calculation Formula:
- Hourly basic rate of pay x 1.5 x number of hours worked overtime
Overtime payments must be made within 14 days after the last day of the salary period.
2. What are the maximum hours of work and overtime?
Under normal circumstances, employees should work no longer than 12 hours a day.
However, an employer may ask their employees to work more than the maximum 12 hours of work in the following exceptional scenarios:
- An accident or threat of an accident
- Work that is essential to the life of the community, national defence or security
- Urgent work regarding machinery or plant
- An unforeseeable interruption of work
Employers will need to apply for an exemption if they require employees to work more than 12 hours a day of overtime. The total number of overtime hours an employee is allowed to work is 72 hours a month.
Unless work is done beyond the usual daily working hours, otherwise, work on rest days or public holidays is not counted in the 72-hour overtime limit in Singapore.
In Singapore, overtime on a rest day or public holiday is calculated as such:
- (Hourly basic rate of pay x 1.5 x Number of hours worked overtime) + (Rest day or public holiday pay)
3. What are the regulations on rest days in Singapore and how are they counted?
Employers are required to provide employees with 1 rest day (a whole day) per week.
For shift workers, a rest day can be counted as a continuous period of 30 hours. Even if it extends into the Monday of the following week, the 30-hour rest period starting before 6 pm on a Sunday is considered as 1 rest day within the week.
Employers are not allowed to compel their employees to work on a rest day apart from exceptional circumstances.
4. When can a rest day fall?
The employer has the discretion to designate the weekly rest day, which may fall on a Sunday or any other day of the week.
Days on which an employee is not required to work, other than the designated rest day, are not regarded as rest days under the law.
Where the rest day does not fall on a Sunday, the employer must prepare a monthly work roster and notify the employee of their rest days before the start of each month. The maximum permissible interval between two rest days is 12 consecutive days.
5. How should I calculate overtime hours for shift workers?
Overtime pay for shift workers is required in Singapore if:
- They worked more than an average of 44 hours over three weeks
- Or, they worked more than the contractual working hours per week (this can be less than the 44 hours per week over three weeks).
6. Can an employer give time off instead of overtime pay?
In Singapore, employers cannot substitute overtime pay with time off for employees covered under Part 4 of the Employment Act. For these employees, overtime must be paid at a rate of at least 1.5 times the hourly basic rate of pay.
For those not covered under Part 5 of the Employment Act, the entitlement would depend on the employment contract.
For more information, kindly refer to the ‘Ministry of Manpower’ website.
Key Takeaways on Overtime Pay and Working Hours in Singapore:
- Better planning of manpower
Overall, Singapore with these amendments in overtime pay is part of a bigger movement towards better work-life balance, overturning the workaholic culture present in the area. Overtime pay is not only to ensure proper compensation of employees but also a measure to encourage better scheduling of working hours.
- Communication is key
To avoid disputes on overtime, pay in Singapore, employers should clearly communicate their overtime policies and work arrangements, making sure everything complies with the latest legislation updates.
- Eliminate the hassle
Hiring in Singapore can be a complex procedure, both from a legal perspective and from the day-to-day managing and process payroll, there are many unique factors that only a local expert team would like. Administrative tasks like payroll calculation, distribution, CPF contribution, employer tax liability and other related paperwork can be a hassle.
By outsourcing trivial HR work to a trusted HR and payroll outsourcing services provider in Singapore like Links International, you can better focus on revenue-generating work and bringing the best out of your staff.
FAQs About Singapore Working Hours and Overtime Pay
- What is the standard working hours in Singapore?Under Singapore’s Employment Act, the standard working hours for employees covered under Part IV are generally up to 44 hours per week. Employees are also typically not allowed to work more than 12 hours per day except under certain circumstances permitted by law.
- Who is entitled to overtime pay in Singapore?Overtime pay in Singapore mainly applies to employees covered under Part IV of the Employment Act, including workmen earning up to SGD 4,500 per month and non-workmen earning up to SGD 2,600 per month. Managers and executives are generally not entitled to statutory overtime pay unless stated in their employment contract.
- How is overtime pay calculated in Singapore?Overtime pay in Singapore is generally calculated at 1.5 times the employee’s hourly basic rate of pay for work performed beyond the contractual or statutory working hours. Employers must ensure overtime calculations comply with the Employment Act and applicable salary formulas.
- Are employers required to pay overtime for work on rest days or public holidays in Singapore?Yes. Employees who are required to work on rest days or public holidays may be entitled to additional pay depending on the number of hours worked and the employment arrangement. The payment structure differs based on whether the work was requested by the employer or the employee.
