Social Insurance

New Changes of Employment Act in Singapore


  • The person whose basic salary is less than S$4500 every month will be applicable for the Employment Act in Singapore. Based on this law, the disease allowance and unemployment benefit by injustice dismissal will be applied. As a result, there are about 300,000 people estimated to be the objects including the positions of experts and managers.
  • The officers whose basic salary will be raised from S$2000 to S$2500 will be the objects to apply the Employment Act. As result, about 150,000 labors estimated can apply the Act. For the manual workers, the basic salary is no more than S$4000.
  • The upper limit of various deductions from the salary of employees by employers is set for 25% of monthly salary.
  • The overtime payment is set for not more than S$2250.
  • In order to protect experts or managers from injustice dismissal, it is necessary to work for more than 12 months.
  • The fine for violation of Employment Act has been enforced. The maximum penalty is changed to S$30,000 for no payment of salary. It is also possible to be sentenced to penal servitude for 12 months.


Main points of Employment Act:


There are some characteristics of Employment Act in Singapore. Firstly, not all of the employees are the objects to apply the Employment Act in Singapore. In the case of employing labors that are not in the scope of Employment Act, it is necessary to make contract to regulate salary and the welfare of employees between employers and employees.


If the employees are applied for Employment Act becomes a standard of employment relationship. It is classified into objects of Employment Act and independent contractor. The independent contractors are just applied for service contract so there is no employment relationship and not applied for Employment Act.


Labor Union in Singapore:


The Labor Union in Singapore has a very high social position. Employees have the right to form a labor union and to negotiate with other organizations. Until the year of 2012, the registered labor unions have been 66 and there are 610,000 members. These unions are under the National Trades Unison Congress (NTUC). The NTUC plays a role in many fields. It manages supermarkets, insurance companies, travel companies, taxis companies and other kinds of corporations. And as a partner of politics, it supports the development of economics.


Labor Union Act:


In order to keep the good relationship between companies and labors by improving the employment conditions, the Labor Union Act regulates the laws to contribute the economics development of Singapore. In the law, the way of registration and rights of labors are regulated and the labor union must register to registrar within one month from formation.


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