Guide To Overtime Pay For Employers In Singapore


Are you researching on how to calculate your employee’s overtime pay? If that’s the case, you’ve come to the right place. We’ll cover everything you need to know about overtime pay in Singapore, including how it’s calculated, your employee’s rights to claim for it, and when it is payable. We’ll also address some frequently asked questions about overtime pay from employers.

Working Hours Under The Employment Act

Working hours, including overtime hours and pay, are regulated in Singapore for those covered by Section 4 of the Employment Act. The work week (Monday through Sunday) is divided into regular working days and rest day(s). Depending on the nature of the business and the arrangement with the employees, contractual terms such as work and rest days, and working hours are usually mutually agreed to by the employee and employer in the  employment contract.

What Is Overtime Pay

Overtime is defined as any work done in excess of the stipulated working hours, excluding breaks. Overtime pay applies in the following situations:

  • A workman (doing manual labour) earning no more than $4,500 per month
  • A non-worker earning up to $2,600 per month

According to MOM, OT paid to non-workers is limited to a salary level of S$2,250 or an hourly rate of S$11.80. 

Reference reading –

Employees can only clock a maximum of 72 OT hours per month.

How Overtime Pay Is Calculated

Overtime salary is calculated as 1.5x hourly rate x overtime hours worked. However, there are additional requirements for meeting overtime payments. In fact, there are also different calculations depending on the type of day overtime was clocked.

However, it is important to note that this is calculated weekly rather than daily and is paid only if the worker works more than 44 hours per week. 

The total working time is averaged over a two-week period (or three weeks if the worker works 12-hour shifts). Assuming a worker works 45 hours on the first week but only 40 hours the next, they will not be eligible for overtime pay because the average working week is 42.5 hours during this time period. 

Other Important Considerations

When calculating overtime salary for your employees, do you know that there are other factors to consider? They are:

  • CPF calculation
  • Contributions to self-help groups by race, such as SINDA, CDAC, Mendaki, Eurasian Association

According to MOM laws, it is a requirement to provide them accurate info in the payslips based on these considerations too.

Read the 8 Important CPF information evry employer should know

When Can Employees Claim Overtime Pay

If an employee works more than the contractual working hours, he or she may file a claim to be paid for putting in additional hours. Contractual working hours are the hours that you and your employer agreed to in your service contract. Overtime pay must be made within 14 days of the salary period’s end.