Last updated: June 2026
The Singapore Employment Act is Singapore’s main labour law for employees working under a contract of service. It sets minimum standards for salary payment, leave, rest days, working hours, overtime, termination, payslips and employment records.
For 2026, employers also need to track connected updates on CPF, parental leave, retirement and re-employment, work passes and the ongoing Employment Act review.
What The Singapore Employment Act Covers
The Singapore Employment Act applies to most local and foreign employees in Singapore, including full-time, part-time, temporary and contract employees. MOM explains this in its official guide to employee coverage under the Employment Act.
The Act generally excludes seafarers, domestic workers, statutory board employees and civil servants. These groups are covered by separate rules or employment terms.
Employers hiring in Singapore should treat the Act as the baseline for contracts, payroll, leave policies and termination processes. For businesses setting up local payroll, Procloz’s outsourced payroll services Singapore can support salary processing, CPF, payslips and local compliance workflows.
Key Singapore Employment Act Updates For 2026
The Singapore Employment Act itself remains the core framework, but 2026 compliance is shaped by several connected labour and payroll updates.
From 1 January 2026, the CPF Ordinary Wage ceiling reached S$8,000, as confirmed in the CPF Board’s guidance on Ordinary Wage ceiling rules for CPF contributions. Employers should check CPF settings, Additional Wage calculations and senior worker contribution rates before payroll runs.
From 1 July 2026, Singapore’s retirement age rises to 64 and the re-employment age rises to 69. MOM explains the change in its guidance on retirement and re-employment age requirements. Employers should update handbooks, re-employment letters and workforce planning processes.
Parental leave also needs attention. MOM confirms that Shared Parental Leave entitlement rules increase to 10 weeks for eligible parents of children born from 1 April 2026 onwards. Eligible fathers are also entitled to four weeks under the Government-Paid Paternity Leave eligibility rules for children born from 1 April 2025 onwards.
For deeper CPF payroll planning, Procloz also explains the payroll impact in its blog on CPF changes in Singapore and what they mean for employers.
What Part IV Means For Employers
Part IV of the Singapore Employment Act covers rest days, hours of work, overtime and related service conditions. It does not apply to every employee.
MOM states that Part IV applies to workmen earning a monthly basic salary of S$4,500 or less, and non-workmen covered by the Act earning S$2,600 or less. Managers and executives are not covered by Part IV.
This distinction matters because overtime, rest day and working hour rules depend on employee classification. A payroll setup that applies one rule to every worker can create underpayment or overpayment risk.
Salary, Overtime And Payslip Requirements
For employees who fall under Part IV, overtime pay is calculated separately from basic salary and must meet MOM’s minimum rate. Employers should follow MOM’s guidance on overtime pay rates and payment timelines, including the requirement to pay overtime within 14 days after the salary period ends.
Employers must issue itemised payslips to employees covered by the Act. MOM’s itemised payslip requirements for employers explain when payslips should be issued and what records must be kept.
Employment and salary records should also be retained properly. MOM’s employment recordkeeping requirements state that records for current employees should be kept for the latest two years. For former employees, the last two years of records should be kept for one year after they leave.
Companies managing payroll in several countries can use Procloz’s global payroll services for multi-country teams to standardize controls while keeping Singapore-specific rules intact.
Contracts, Leave And Termination Rules
Employers should issue clear written Key Employment Terms. These usually include job title, main duties, working arrangements, salary, pay period, benefits, leave, probation and notice period. MOM provides official guidance on Key Employment Terms for Singapore employees.
Leave policies should reflect annual leave, sick leave, public holidays, maternity leave, paternity leave and Shared Parental Leave where employees qualify. Payroll teams should connect leave approvals with salary calculations and reimbursement tracking.
For termination, the notice period should follow the employment contract. If the contract is silent, statutory notice rules apply. Employers should also handle final salary, deductions and payslips accurately.
When restructuring, employers should check MOM’s mandatory retrenchment notification rules. Covered employers must notify MOM within five working days after notifying affected employees.
Work Pass And Fair Employment Readiness
Work pass rules sit outside the Singapore Employment Act, but they affect hiring cost, contract planning and payroll compliance.
MOM’s guidance on Employment Pass eligibility and COMPASS requirements confirms the current EP salary framework. MOM’s guidance on S Pass qualifying salary and assessment criteria confirms the S Pass salary thresholds and assessment approach.
Employers should check pass eligibility before issuing offers, especially for regional hires, senior specialists and foreign professionals.
Singapore is also strengthening workplace fairness. MOM announced that the Workplace Fairness Bill was passed in January 2025. Employers should review hiring, promotion, appraisal, grievance and dismissal processes for consistency.
The Singapore Employment Act is also under review by a Tripartite Workgroup, with recommendations expected in the second half of 2026. MOM’s update on the Tripartite Workgroup review of the Employment Act shows why employers should keep policies flexible.
For companies hiring without a local entity, Procloz’s Employer of Record services for compliant hiring can support onboarding, payroll and employment administration.
Procloz supports companies with payroll, compliance, EOR, and workforce operations, so HR teams can focus on strategic decisions with stronger operational control.
Contact us for assistance.
Frequently Asked Questions On Singapore Employment Act
1. Who Is Covered Under The Singapore Employment Act?
The Singapore Employment Act covers most local and foreign employees working under a contract of service in Singapore. This includes full-time, part-time, temporary and contract employees. It generally excludes seafarers, domestic workers, statutory board employees and civil servants, who are governed by other employment terms or laws.
2. Does The Singapore Employment Act Apply To Foreign Employees?
Yes. Foreign employees working under a contract of service in Singapore are generally covered by the Singapore Employment Act. However, their coverage under Part IV depends on their role and salary level. Employers should also check work pass conditions separately because immigration rules are governed by MOM’s work pass framework.
3. What Is Part IV Of The Singapore Employment Act?
Part IV covers rest days, hours of work, overtime and related service conditions. It applies only to specific employees, including workmen earning S$4,500 or less and non-workmen earning S$2,600 or less in monthly basic salary. Managers and executives are not covered by Part IV.
4. What Should Employers Update For Singapore Employment Compliance In 2026?
Employers should review CPF settings, leave policies, retirement and re-employment processes, Part IV classifications, payslip formats, employment records and work pass salary checks. They should also monitor MOM’s Employment Act review, as recommendations are expected in the second half of 2026.
