Is severance pay required by law in Singapore?
No. Retrenchment benefits are a matter of contractual agreement or company policy. Without a provision, the employer is not legally obligated to pay.
What is the market norm for retrenchment benefits?
Two weeks to one month of salary per year of service under MOM’s Tripartite Advisory. Unionised firms usually pay a full month per year.
Who qualifies for retrenchment benefits?
Employees with at least two years of continuous service, if specified in their contract or collective agreement.
Are foreign employees treated differently?
No. EP, S Pass and Work Permit holders are treated the same as locals for retrenchment benefit purposes.
What is the Mandatory Retrenchment Notification?
Employers with at least 10 employees must notify MOM of all retrenchments within five working days, regardless of how many are affected.
Is my notice pay taxable?
Yes, though it does not attract CPF. Retrenchment benefits are generally neither taxable nor CPF-attracting.
How much notice am I owed?
From one day to four weeks depending on tenure, unless your contract specifies longer.
When must my work pass be cancelled?
Within 7 days of termination. You then receive a Short-Term Visit Pass valid for 30 days, during which you cannot work.
Where do I take a dispute?
MOM for statutory matters, and TAFEP for mediation including retrenchment benefit disputes.
Is Saplic free to use?
Yes. Creating your profile, searching for jobs and applying costs nothing, now or later. There is no app to install either.