Understanding Annual Leave Entitlement in Singapore
In the Singapore business landscape, navigating annual leave entitlements in Singapore can be confusing. This comprehensive guide clarifies your rights and responsibilities as an employee, addressing common questions and concerns.
What is Annual Leave Entitlement in Singapore?
To qualify for annual leave entitlement, the employee must work for your employer for at least 3 months without a break in service to be eligible for annual leave.
Calculation
Annual leave entitlement is based on completed years of service. Keep reading to find the anual leave entitlement in detail.
Pro-ration
If you don't complete a full year, the company pro-rates your annual leave based on the months you worked. This rule applies during probation and if you leave the company mid-year.
Additional Leave
In different scenario, employers may offer more leave than the statutory minimum of 14 days as a benefit.
How Many Days of Paid Annual Leave Am I Entitled To?
In Singapore, your paid annual leave is determined by the Employment Act (EA) and your length of service. The minimum entitlement is:
- 7 days after working for at least 3 months in your first year. If an employee has worked at least 3 months but less than a year, their annual leave entitlement of 7 days is pro-rated based on the number of complete months worked, rather than a full 7 days if they haven't completed a full year of service.
- An additional day for each subsequent year of service, up to a maximum of 14 days after 8 years.
| Year of Service | Days of Annual Leave |
|---|---|
| 1st | 7 |
| 2nd | 8 |
| 3rd | 9 |
| 4th | 10 |
| 5th | 11 |
| 6th | 12 |
| 7th | 13 |
| 8th and thereafter | 14 |
How is Annual Leave Calculated for New Employees in Their First Year?
The first thing to be eligible for annual leave is that you need at least 3 months of service to qualify for paid annual leave. Additionally, the minimum is 7 days after 3 months of service.
Pro-ration formula
The formula for pro-rated leave is: (Number of months of service / 12 months) * Days of annual leave entitlement.
*Results are rounded up to the nearest whole day (except for results less than 0.5 days, which are rounded down).
Example Calculation
Jenie is an employee starting work on January 1st and leaving on July 31st (6 months) with a 7-day entitlement. Therefore, she would receive (6/12) * 7 = 3.5 days, rounded up to 4 annual leave days.
Can My Employer Reject My Annual Leave Request?
While employers can't arbitrarily deny leave, they can reject or adjust dates due to operational needs (e.g., peak periods, insufficient staffing). However, they should propose alternative dates and maintain fair, consistent practices. Essentially, open communication is crucial.
What Happens to Unused Annual Leave When I Resign?
You can typically encash or clear unused leave when you resign. Encashment is calculated based on your gross rate of pay at your last drawn salary. However, if you are terminated for misconduct, any unused leave is forfeited. Additionally, you can use annual leave to offset your notice period.
Can Annual Leave Be Carried Forward to the Next Year?
This depends on whether you're covered under Part IV of the Employment Act (monthly basic salary of $4,500 or less for workmen, or $2,600 or less for non-workmen). If so, unused leave can be carried forward to the next 12-month leave cycle, but encashment after this period is at the employer's discretion. For employees not covered under Part IV, the employment contract dictates the policy.
Am I Entitled to Annual Leave During My Probation Period?
Yes, after completing at least 3 months of service or more, you are entitled to pro-rated annual leave, regardless of probation status. If your probation is less than 3 months, leave is at your employer's discretion.
How is Annual Leave Entitlement for Part-Timers?
Part-time employees are entitled to pro-rated annual leave based on their working hours compared to a full-time employee. This can be calculated using a pro-rata basis or an accrual system.
Formula (pro-rate):
(No of working hours per year of part-time employee ÷ No of working hours per year of a similar full-time employee) x no of days of annual leave of a similar full-time employee with equal length of service x number of working hours in a day of a similar full-time employee
Example:
John is a part-timer that works 5 hours a day for 4 days a week (20 hours per week). A similar full-timer works 8 hours a day for 5 days per week (40 hours per week). The full-timer’s leave entitlement is 14 days in the first year.
The part-timer’s entitlement after 3 months is therefore 56 hours, as calculated below:
[(20 hours × 52 weeks) ÷ (40 hours × 52 weeks)] × 14 days × 8 hours per day = 56 hours
What Happens if I Fall Sick During My Annual Leave?
You can ask your employer to switch to sick leave, but this is at their discretion.
Can My Employer Force Me to Clear My Annual Leave?
No. Employers cannot force you to take leave at a specific time. While they can reject requests based on operational needs, they cannot compel you to take leave against your will.
