Are you an employer in Singapore who is looking for information on overtime pay? If so, you've come to the right place. In this guide, we'll provide you with everything you need to know about overtime pay in Singapore, including how it's calculated and when it's payable. We'll also answer some common questions employers have about overtime pay. Read on to find out more!
Who is entitled to overtime pay?
The following employees are entitled to overtime pay:
- A workman (doing manual labour) earning a basic monthly salary of not more than $4,500
- A non-workman earning up to $2,600
When can an employee claim for overtime?
An employee can claim for overtime if he or she works in excess of the contractual working hours.
What are considered contractual working hours?
Contractual working hours are the hours that you and your employer have agreed to in the contract of service.
|For common work arrangements
|For other work arrangements
|5 days or less a week: Up to 9 hours per day or 44 hours a week
|Less than 44 hours every alternate week
|More than 5 days a week: Up to 8 hours a day or 44 hours a week
|Up to 48 hours a week, but capped at 88 hours in any continuous 2-week period.
How to calculate overtime pay?
Overtime pay = Hourly basic rate of pay × 1.5 × number of hours worked overtime
The hourly basic rate of pay is calculated as follows:
|Hourly basic pay calculation
|(12 x Monthly basic rate of pay) / (52 x 44)
|Daily pay at the basic rate / Working hours per day
|Total weekly pay at the basic rate of pay / Total number of hours worked in the week
Head over to our overtime pay calculator!
What is the maximum overtime rate payable?
The overtime rate payable for non-workmen is capped at the salary level of $2,600, or an hourly rate of $13.60.
When must overtime pay be paid to employees?
Payment must be made within 14 days after the last day of the salary period.
What is the maximum number of overtime hours?
An employee can only work up to 72 overtime hours in a month.
Employers can apply for an exemption if they require employees to work more than 72 hours of overtime in a month.
How is overtime pay on rest days or public holidays calculated?
Overtime on a rest day or public holiday =
(Hourly basic rate of pay × 1.5 × Number of hours worked overtime)
+ (Rest day or public holiday pay)
How to calculate rest day or public holiday pay:
- Public holiday pay: (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 1
- Monthly gross salary already includes payment for holiday and therefore only needs to cover an additional day’s pay
- Rest day pay (full day): (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 2
- Rest day pay (half day): (12 x monthly basic rate of pay) / (52 x average number of days an employee is required to work in a week) x 1
Calculate overtime pay seamlessly with Payboy payroll module!
- 100% Compliant and 100% peace of mind
- Prepare your e-submission of CPF contributions with a few simple clicks on Payboy!
- Covers any work arrangement
- Working with full timers, part timers, freelancers and contract staff? We’ll take care of the unique payroll requirements for each working arrangement.
- Transparent, Accurate and Simple
- Full visibility on how payroll is calculated automatically based on shifts, attendance, leave and submitted claims, within an intuitive experience.
- Fully integrated with your preferred platforms
- We’ll fit into your ecosystem seamlessly and keep your finance team happy. Check out our full list of integrations.
Head over to our Payboy support center to find out how to customise additional overtime settings with Payboy payroll module!
Are there any SME grants available if I’m interested in using Payboy HR & payroll software?
Yes Payboy is eligible under the PSG Grant! With PSG Grant, you can possibly save up to 70% of the total fees!* Head over to our PSG grant FAQs or reach out to our friendly support team for more information!
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