Overtime Pay in Singapore: A Comprehensive Guide
Working overtime is often a necessary aspect of jobs in Singapore. Hence, it's crucial to understand your rights and how overtime pay is calculated. This guide offers a comprehensive overview of overtime pay in Singapore, addressing common questions and clarifying the regulations under the Employment Act.
What is Considered Overtime Work in Singapore?
Overtime is as any work exceeding your usual or contractual hours, excluding breaks and meal times. This often means exceeding 8 hours a day or 44 hours a week.
Eligibility for Overtime Pay
- Non-workmen earning up to S$2,600 per month.
- Workmen earning up to S$4,500 per month.
Managers, executives, domestic workers, statutory board employees, and civil servants are generally exempt.
Maximum Overtime Hours
Employees cannot work more than 12 hours a day, except in emergencies or essential services, with a cap of 72 overtime hours per month.
Special Conditions
Overtime on rest days or public holidays entails additional calculations and higher pay rates.
What are the contractual working hours in Singapore?
Contractual working hours are the hours that you and your employer have agreed to in the contract of service.
For common work arrangements | For other work arrangements |
---|---|
5 days or less a week: Up to 9 hours per day or 44 hours a week | Less than 44 hours every alternate week |
More than 5 days a week: Up to 8 hours a day or 44 hours a week | Up to 48 hours a week, but capped at 88 hours in any continuous 2-week period. |
How Much Extra Money Will I Get Paid for Overtime?
Overtime pay in Singapore is dictated by the Employment Act and the amount received is influenced by several factors:
Eligibility
- Overtime pay is applicable to non-workmen earning up to SGD 2,600 per month and workmen (manual laborers) earning up to SGD 4,500 per month.
- In Singapore, overtime pay regulations under the Employment Act specify that non-workmen are eligible for overtime pay if they earn up to SGD 2,600 per month, while workmen (manual laborers) qualify if they earn up to SGD 4,500 per month.
Overtime Pay Rate
The overtime pay rate is 1.5 times your hourly basic rate of pay. In Singapore, under the Employment Act, eligible employees receive overtime pay calculated at 1.5 times their hourly basic rate of pay.
The formula used is:
Overtime Pay = (Hourly Basic Rate of Pay × 1.5) × Number of Overtime Hours Worked
Calculating Hourly Basic Rate
- Monthly-rated employees: (12 × Monthly Basic Rate of Pay) / (52 × 44)
- Daily-rated employees: Daily Pay at the Basic Rate / Working Hours Per Day
Example Calculation
An employee earning SGD 2,600 per month works 2 hours of overtime:
- Hourly basic rate: (12 × 2600) / (52 × 44) ≈ SGD 13.60 per hour
- Overtime pay: SGD 13.60 × 1.5 × 2 = SGD 40.80
Additional Considerations
- Employees working on rest days and public holidays include these hours in the overtime limit and receive payment according to specific rules based on the hours worked.
- The maximum overtime is generally capped at 72 hours per month unless the Ministry of Manpower (MOM) approves exemptions.
Are Part-Time Workers Eligible for Overtime Pay?
Yes, part-time workers are eligible if their earnings meet the criteria (non-workmen earning up to $2,600, workmen earning up to $4,500) and they are covered under the Employment Act.
Part-time workers in Singapore are covered under the Employment Act, but their eligibility for benefits is not based on the salary criteria of $2,600 for non-workmen and $4,500 for workmen. Therefore, overtime pay is calculated at 1.5 times their hourly basic rate.
Overtime Pay for Public Holidays and Rest Days
Overtime pay calculations differ for public holidays and rest days. Furthermore, refer to the detailed breakdown provided earlier in this guide.
- Public holiday pay: (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 1
- Monthly gross salary already includes payment for holiday and therefore only needs to cover an additional day’s pay
- Rest day pay (full day): (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 2
- Rest day pay (half day): (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 1
Which Employees Are Not Eligible for Overtime Pay?
- Managers and Executives: Generally exempt.
- Employees exceeding salary caps: Non-workmen earning over SGD 2,600 and workmen earning over SGD 4,500.
- Certain Categories of Workers: Seafarers, domestic workers, statutory board employees, and civil servants.
Can Employers Offer Time-Off Instead of Overtime Pay?
No, employers cannot substitute overtime pay with time off for employees covered under Part IV of the Employment Act. For those not covered, it depends on the employment contract.
Is Overtime Pay Mandatory for All Companies?
No. Overtime pay is mandatory only for eligible employees under the Employment Act rules.
What to Do If Your Employer Refuses to Pay Overtime
- Verify Eligibility: Ensure you meet the criteria.
- Calculate Overtime Pay: Accurately calculate the amount owed.
- Review Your Contract: Check for relevant clauses.
- Communicate with Your Employer: Explain the situation and provide evidence.
- Seek Mediation (TADM): Consider mediation through the Tripartite Alliance for Dispute Management.
- File a Claim (ECT): File a claim with the Employment Claims Tribunal if necessary.
- Contact MOM: Report the issue to the Ministry of Manpower.
Overtime Pay for Shift Workers
Overtime pay for shift workers is calculated at 1.5 times their basic hourly rate for hours exceeding the average of 44 hours per week over 3 weeks. However, higher rates apply for work on rest days and public holidays.
Day Type | Pay Rate |
---|---|
Normal Workday (Overtime) | 1.5x Hourly Rate |
Rest Day | Double Daily Rate + Overtime |
Public Holiday | Double Daily Rate + Overtime |
This guide offers a general overview. For specific details, consult the Employment Act and the Ministry of Manpower's website.