Understanding Singapore's Employment Act

In Korea, the Labor Standards Act establishes the minimum standards for working conditions, with the Ministry of Employment and Labor overseeing compliance to protect the basic livelihoods of workers. Singapore has a corresponding piece of legislation: the Employment Act 1968, which governs the fundamental conditions of employment — including working hours, annual leave, overtime, and rest periods — for employees working in Singapore.

This article compares the two frameworks across their most foundational provisions: working hours, overtime, and annual leave entitlements.

Under Section 38 of Singapore's Employment Act, working hours may not exceed 8 hours per day or 44 hours per week. Where a separate arrangement is agreed upon between the employer and employee through the employment contract, a degree of flexibility in working hour distribution is permitted within defined limits.

For example, in a five-day work environment, up to 9 hours per day may be worked. A two-week averaging arrangement is also possible, where one week exceeds 44 hours provided the other week is reduced accordingly — but the total working hours over any consecutive two-week period may not exceed 88 hours, and no single week may exceed 48 hours.

As in Korea, employers in Singapore are required to pay overtime pay when employees work beyond the statutory hours. Under Section 38(4) of the Employment Act, overtime must be compensated at a rate of at least 1.5 times the employee's basic hourly rate, and overtime is capped at 72 hours per month. If monthly overtime exceeds 72 hours, the employer must obtain approval from the Commissioner for Labour under the Ministry of Manpower, as required by Section 38(3).

Section 38(9) further specifies that employees in fire services or roles that inherently involve extended standby time are exempt from the working hour and overtime restrictions. This exemption applies to occupations such as firefighters, security personnel, and emergency responders — where standby time substantially exceeds active working time.

Under Section 88A(1) of the Employment Act, employees who have worked continuously under the same employer for at least one year are entitled to a minimum of 7 days of paid annual leave, with one additional day added for each subsequent year of service — up to a maximum of 14 days. Accrued annual leave must be taken within 12 months of the date it arises; any unused leave beyond this period is forfeited.

Sections 88A(2) and 88A(3) also extend annual leave entitlements to employees with between 3 and 12 months of service, with leave calculated on a pro-rata basis according to the number of months worked.

For example, an employee entitled to 7 days of annual leave who has worked for 6 months would be entitled to (7 ÷ 12) × 6 = 3.5 days, rounded up to 4 days. An employee with 4 months of service would be entitled to (7 ÷ 12) × 4 = 2.33 days, with the fraction rounded down to 2 days.

Under Section 88 of the Employment Act, all employees in Singapore are entitled to paid leave on public holidays. The Ministry of Manpower (MOM) announces the public holiday schedule annually, guaranteeing 11 public holidays per year.

If a public holiday falls on a rest day, the following day is designated as a substitute holiday. Where an employee is required to work on a public holiday, the employer must either pay a holiday work differential or grant an alternative day off.

1. New Year's Day
2. Chinese New Year – first day
3. Chinese New Year – second day
4. Hari Raya Puasa
5. Hari Raya Haji
6. Good Friday
7. Labour Day
8. Vesak Day
9. National Day
10. Deepavali
11. Christmas Day

Most countries, including Korea, operate a statutory minimum wage. However, Singapore — one of the highest per-capita income countries in Asia — does not have a national minimum wage.

Instead, the Singapore government operates the Progressive Wage Model (PWM), a structured wage framework designed to deliver sustained wage increases for employees in specific lower-wage occupations. Developed by a tripartite committee comprising the government, trade unions, and employers, the PWM combines stepwise wage increases with skill development requirements to improve both earnings and productivity for lower-wage workers.

Employers in PWM-covered sectors are required to pay at or above the sector-specific minimum wage thresholds and to provide employees with training opportunities to develop job-related skills.

The government further supports this framework through the Progressive Wage Credit Scheme (PWCS), which co-funds a portion of wage increases for lower-wage workers to ease the cost burden on employers, and the Workfare Skills Support (WSS) scheme, which subsidizes part of the cost of job training — simultaneously promoting workforce development and business productivity.

💡 Related article: Learn more about Singapore's Progressive Wage Model (PWM)

Unlike Korea's Labor Standards Act, Singapore's Employment Act does not apply equally to all employees. In particular, the provisions under Part 4 of the Employment Act — Rest Days, Hours of Work and Other Conditions of Service — apply only to employees below a specified wage threshold, and employees in managerial or executive positions are explicitly excluded.

Section 35(b) of the Employment Act specifies that the relevant provisions apply “to every employee (other than a workman or a person employed in a managerial or an executive position).” Working hours, rest days, and related conditions for managers and executives are therefore not prescribed by statute — they are determined by the terms set out in each individual employment contract.

However, Section 88, which governs holiday work differentials and substitute leave for public holidays, applies equally to all employees regardless of seniority or role.

In practice, this means that while managers and executives are not entitled to overtime pay, they are legally entitled to a holiday work differential or substitute leave if required to work on a public holiday.

💡 Part 4 of the Employment Act — conditions for applicable employees:
- General employees (excluding managers and executives) with a basic monthly salary of SGD 2,500 or below
- Workmen with a basic monthly salary of SGD 4,500 or below

Under Regulation 91 of the Employment Act, all employers are legally required to maintain employment records for each employee — including working hours, rest days, overtime, and payroll details. The specific requirements are detailed in the subsidiary regulations covering Particulars of every employee record and Key employment terms, and employers are required to retain these records for a minimum of two years.

In Singapore, working hour record-keeping is not optional — it is a statutory requirement. Accurate attendance data is not merely a management tool; it is central to legal compliance and can serve as critical evidence in the event of a labor inspection or employment dispute.

Singapore's Employment Act is a practical, operationally detailed piece of legislation covering working hours, annual leave, wages, pay differentials, public holidays, rest periods, and overtime — with different provisions applying depending on job function and income level.

As the number of Korean employees working in Singapore and Korean companies establishing local entities there continues to grow, it is important to review the specifics of Singapore's Employment Act carefully in advance — even where it may appear similar to Korea's Labor Standards Act on the surface, the details often differ in meaningful ways.