The following are some frequently asked questions that we often encounter:
"What is the standard calculation for overtime pay for full-time workers in Singapore?"
"How does overtime pay apply for work done on public holidays and rest days for full-time employees in Singapore?"
"What's the process for computing overtime pay for full-time employees in Singapore?"
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Below, you'll find responses to frequently asked questions that we often encounter.
Overtime rates in Singapore are governed by the Employment Act. The Act generally applies to all employees under a contract of service. The key aspects of the overtime rates in Singapore are as follows:
Overtime Pay: For non-workmen earning up to SGD 2,600 and workmen earning up to SGD 4,500, overtime pay is calculated as 1.5 times the hourly basic rate of pay. This is also applicable for employees who are not covered by the Employment Act.
Overtime Hours: Employees should not work more than 12 hours a day under the Employment Act, including overtime. If employees work beyond the official working hours (usually 44 hours a week), such work is considered overtime.
Payment Time: Overtime pay should be paid within 14 days after the salary period in which the overtime work was done.
Maximum Overtime: The maximum amount of overtime that an employee can work is capped at 72 hours per month.
It's crucial for employers to adhere to these regulations to avoid legal repercussions, and for employees to be aware of their rights under the Employment Act.
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How overtime pay is calculated in Singapore?
The rate of pay for overtime work is calculated at 1.5 times the employee's hourly basic rate of pay.
The formula used to calculate the overtime rate is as follows:
Overtime pay = (Hourly basic rate of pay x 1.5) x Number of overtime hours worked
The hourly basic rate of pay is calculated as follows:
Monthly-rated employee: (12 x Monthly basic rate of pay) / (52 x 44)
Daily-rated employee: Daily pay at the basic rate / Working hours per day
However, work on rest day or public holidays is not counted in the 72-hour overtime limit, except for work done beyond the usual daily working hours on those days. Such extra hours are included in the 72-hour limit.
Overtime on a rest day or public holiday is calculated as follows:
(Hourly basic rate of pay × 1.5 × Number of hours worked overtime) + (Rest day or public holiday pay)
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How process overtime pay in Talenox?
You can choose either "Overtime Days" or "Overtime Hours" under Hourly/Daily Attendance tab:
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The above is a general overtime calculation formula provided by MOM and the company's employment contract might have specific provisions regarding overtime.
Admins are advised to check the employee's employment contract or agreement and ensure compliance with the Employment Act.