How To Calculate The Overtime Wages according to Singapore MOM Regulations

How To Calculate The Overtime Wages according to Singapore MOM Regulations

Table of Contents

What does “MOM” imply in Singapore?

The Ministry of Manpower is a government ministry in Singapore that is in charge of developing and carrying out policies regarding employment there. The Ministry is in charge of three statutory boards, the Central Provident Fund Board, the Singapore Labour Foundation and Workforce Singapore.

The Central Provident Fund Board administers the Central Provident Fund (CPF), Singapore’s social security savings plan that provides working Singaporeans with old-age and retirement financial security. It also extends assistance to lower-income union members through its welfare schemes. SLF is funded mainly by contributions from unions, co-operatives, and returns from investments.

Workforce Singapore will promote the development, competitiveness, inclusiveness, and employability of all levels of the workforce. Its key mission is to enable Singaporeans to meet their career aspirations, take on quality jobs at different stages of life and help enterprises be competitive and manpower-lean. Workforce Singapore will focus on strengthening the Singaporean core and ensure that Singaporeans are able to have better jobs and careers. Workforce Singapore, in partnership with key stakeholders, will also provide support to business owners and companies to enable them to adapt and grow, while building a future-ready workforce.

How do singapore mom regulations calculate overtime wages?

Part IV of the Employment Act is applicable if you are a workman (performing manual labor) making a basic monthly income of no more than $4,500 or an employee who is not a workman but is covered by the Employment Act and has a basic monthly salary of no more than $2,600, according to the MOM website. You are entitled to breaks, overtime compensation, and a day of rest, and your work hours are regulated.

A workman is typically someone whose primary line of work is manual labor. This also applies to those who perform manual labor (including artisans and apprentices, but not seafarers or domestic workers). People who oversee manual workers but also conduct manual labor for more than half of their working hours are also covered, as are those who drive or repair commercial vehicles carrying passengers. However, all managers or executives are not covered by Part IV of the Act. Making judgments on matters like hiring, reprimanding, terminating employees’ employment, performance reviewing, and compensation may be among their responsibilities and powers. Manager or executive responsibilities also include creating the enterprise’s strategies and policies as well as managing or operating the company.

Hours of work, overtime and rest day

Employee are generally not required to work more than 6 consecutive hours without a break. However, if the nature of the work requires continuous work for up to 8 hours, breaks must be provided for meals. The breaks should be at least 45 minutes long.

Overtime work is all work in excess of the normal hours of work, excluding breaks. You can claim overtime if you are a non-workman earning up to $2,600 or a workman earning up to $4,500. The overtime rate payable for non-workmen is capped at the salary level of $2,600, or an hourly rate of $13.60. And for overtime work, your employer must pay you at least 1.5 times the hourly basic rate of pay. Payment must be made within 14 days after the last day of the salary period.

Overtime pay is calculated as follows:

  • Hourly basic rate of pay × 1.5 × number of hours worked overtime

The hourly basic rate of pay is calculated as follows:

For this category of employeeHourly basic rate of pay is
Monthly-rated employee(12 x Monthly basic rate of pay) / (52 x 44)
Daily-rated employeeDaily pay at the basic rate / Working hours per day
Piece-rated employeeTotal weekly pay at the basic rate of pay / Total number of hours worked in the week

As an employee, you are not allowed to work more than 12 hours a day.

However, your employer can ask you to work more than 12 hours a day if there is an accident or threat of accident, or work that is essential to the life of the community, national defense or security. Cases like urgent work to be done to machinery or plant and an interruption of work that was impossible to foresee. Also, an employee can only work up to 72 overtime hours in a month and the employers can apply for an exemption if they require employees to work more than the 72 hours of overtime in a month.

Employer must provide 1 rest day per week. A rest day comprises 1 whole day (midnight to midnight). It is not a paid day. For shift workers, the rest day can be a continuous period of 30 hours. A 30-hour rest period that starts before 6pm on a Sunday is considered as 1 rest day within the week, even if it extends into the Monday of the following week. Your employer cannot compel you to work on a rest day, unless under exceptional circumstances.

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