The Employment Act (Cap. 91A) is Singapore’s foundational employment legislation, setting out the minimum terms and conditions of employment for the vast majority of employees working in Singapore. Significantly updated in recent years to extend coverage to all employees — including professionals, managers and executives (PMEs) regardless of salary level — it remains the first port of call for any employer looking to understand their legal obligations.
With key changes taking effect in 2026, including an increase in the statutory retirement age and expanded parental leave entitlements, every employer operating in Singapore should review their HR policies now. This guide covers the key provisions you need to know.
Who Does the Employment Act Cover?
The Employment Act covers all employees in Singapore under a contract of service, with three categories of exceptions:
- Domestic workers (covered separately under the Employment of Foreign Manpower Act)
- Seafarers (covered under the Merchant Shipping Act)
- Statutory board employees and civil servants (covered under their own legislation)
All other employees — including PMEs — are covered by the Employment Act. This is a significant point: prior to the 2019 amendments, managers and executives earning above S$4,500 per month were excluded. Today, the core protections of the Act apply to everyone.
Part IV: Enhanced Protections for Lower-Wage Workers
Part IV of the Employment Act provides additional protections — including limits on working hours, rest day pay, and overtime rates — for two sub-categories of employees:
- Workmen earning a basic monthly salary of S$4,500 or less
- Non-workmen earning a basic monthly salary of S$2,600 or less
Employees above these thresholds (including most PMEs) are protected by the core provisions of the Act but not the Part IV overtime and rest day requirements.
Salary: Payment Rules Every Employer Must Follow
The Employment Act sets strict rules on salary payment that apply to all covered employees:
- Salary must be paid at least once a month, and the salary period cannot exceed one month
- Salary must be paid within seven days after the end of each salary period
- Overtime pay must be paid within 14 days after the end of the salary period in which it was earned
- Unauthorised deductions from salary are prohibited — only specified deductions (such as CPF contributions, agreed loan repayments, and absence from work) are permitted
Failure to pay salary on time is a criminal offence under Section 94 of the Act, with penalties including fines and imprisonment for repeat offenders.
Leave Entitlements
Annual Leave
Employees who have worked for at least three months are entitled to paid annual leave on a pro-rated basis. The minimum entitlement scales with length of service:
- 1st year of service: 7 days
- 2nd year: 8 days
- 3rd year: 9 days
- 4th year: 10 days
- 5th year: 11 days
- 6th year: 12 days
- 7th year: 13 days
- 8th year and beyond: 14 days
These are statutory minimums. Many employers offer more generous entitlements in their employment contracts.
Sick Leave
Employees are entitled to paid sick leave once they have completed at least three months of service:
- Outpatient sick leave: 14 days per year (after 6 months), scaling from 5 days after 3 months
- Hospitalisation leave: Up to 60 days per year (inclusive of the 14 days outpatient entitlement) where hospitalisation is required
Shared Parental Leave — Expanded from 1 April 2026
One of the most significant changes in 2026 concerns parental leave. From 1 April 2026, eligible working parents of Singapore citizen children are entitled to 10 weeks of Shared Parental Leave (SPL), up from six weeks in the initial phase. Each parent receives five weeks by default, though the weeks can be transferred between parents by agreement. SPL is in addition to maternity leave (16 weeks) and paternity leave (four weeks) entitlements under the Child Development Co-Savings Act.
Working Hours and Rest Days (Part IV Employees)
For employees covered by Part IV of the Employment Act, the following limits apply:
- Maximum 44 hours per week (or 8 hours per day, or 9 hours if on a five-day work week)
- At least one rest day per week (unpaid for most Part IV employees)
- Maximum 72 hours of overtime per month
- Overtime must be paid at 1.5 times the hourly basic rate
These limits do not apply to managers, executives, and other employees outside Part IV coverage.
Key Employment Terms (KETs): A Mandatory Document
Employers must issue Key Employment Terms (KETs) in writing to all employees covered by the Employment Act. KETs must be provided within 14 days of the employee’s start date and must include:
- Full name of employer and employee
- Job title, main duties and responsibilities
- Start date (and end date if fixed-term)
- Working arrangement (hours, days, work location)
- Salary, allowances, and any incentive payments
- Leave entitlements
- Medical benefits
- Probation period (if any)
- Notice period for termination
Failure to issue KETs is an offence under the Employment Act. MOM provides a standard KETs template that employers can adapt.
Retirement and Re-Employment: 2026 Changes
From 1 July 2026:
- The statutory retirement age increases from 63 to 64
- The statutory re-employment age increases from 68 to 69
Employers are prohibited from dismissing employees solely because they have reached the retirement age — they must offer re-employment to eligible employees up to the re-employment age. Employers who cannot offer suitable re-employment must offer an Employment Assistance Payment (EAP) instead. These changes reflect Singapore’s longer-term plan to raise the retirement age to 65 and re-employment age to 70 by 2030.
Termination and Notice
The Employment Act does not prescribe specific notice periods — these are determined by the employment contract. However, where no notice period is specified, Section 10 provides default notice periods based on length of service:
- Less than 26 weeks: 1 day’s notice
- 26 weeks to less than 2 years: 1 week’s notice
- 2 years to less than 5 years: 2 weeks’ notice
- 5 years or more: 4 weeks’ notice
Employees may not be dismissed without just cause or excuse. Wrongful dismissal claims may be brought before the Employment Claims Tribunals (ECT) or — for managers and executives — the MOM. Keep meticulous HR records to support any termination decision.
Employer Obligations: A Practical Checklist
- Issue KETs within 14 days of employment commencement
- Pay salary within 7 days of the salary period end
- Make CPF contributions for all Singapore citizen and PR employees on time each month
- Maintain proper payslip records (itemised payslips are mandatory for all covered employees)
- Comply with the new SPL entitlement from 1 April 2026
- Update employment contracts and HR policies to reflect the retirement age change from 1 July 2026
- Adhere to annual compliance obligations including IRAS Auto-Inclusion Scheme (AIS) submissions
Conclusion
The Employment Act sets the floor for employment conditions in Singapore, and its requirements are not negotiable. With retirement age rising and parental leave expanding in 2026, employers must act promptly to update their HR policies and contracts. Non-compliance carries criminal penalties, civil claims at the Employment Claims Tribunals, and reputational risk.
For help with HR compliance, employment contracts, and work pass applications for your Singapore business, Raffles Corporate Services is here to assist.
— The Editorial Team, Raffles Corporate Services