An employee covered under Part IV of the Employment Act who has worked for at least 3 months is entitled to paid annual leave.

Annual leave entitlement depends on the years of service from the start of employment:

Past the 3rd month of work, annual leave entitlement is pro-rated based on the number of full months completed regardless of probation:

  • (No. of completed months of service / 12 months) x No. of days of annual leave entitlement
  • Exclude periods of unpaid leave taken.
  • Round up to 1 day if the fraction is half or more; Round down otherwise.


Any leave taken is counted as a full day of leave, even when taken on a half working day, unless the company allows taking half a day of leave.


An employee's annual leave entitlement can be forfeited if the person:

  • Is absent from work in excess of 20% of the work days in a work period of up to a year, without valid reasons or permission.
  • Does not take the leave within 12 months after 1 complete year of service.
  • Is dismissed for misconduct.

An employer can choose to encash any unused annual leave at the gross rate of pay per the employee's last drawn salary, instead of forfeiture. However, an employer must encash any unused leave for termination of work for reasons other than misconduct.

Unpaid leave

If an employee is not eligible for paid annual leave or has insufficient balance, unpaid leave (aka no pay leave) can be applied instead, subject to approval, and salary can be deducted accordingly.

A monthly-rated full-time employee is deemed to have worked an incomplete month if unpaid leave is taken. Salary for an incomplete month of work is calculated as:

  • Monthly gross rate of pay x (No. of days worked in the month / No. of working days the month)

Use Talenox's Singapore salary for incomplete month of work calculator to quickly obtain accurate prorated salary.

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