Singapore is moving towards better work-life balance by adjusting working time regulations and overtime rate requirements. Whether you are new to the Singaporean job market or managing a growing workforce, understanding these laws is essential to stay compliant. This guide explains everything you need to know about working time and overtime rates in Singapore.
Content Outline
Key Summary
Standard working hours in Singapore are 44 hours per week, with a 12-hour daily limit.
Overtime rate is 1.5 times the basic hourly wage, with pay due within 14 days.
Overtime limits cap at 72 hours/month unless exemptions are approved by the Ministry of Manpower.
Shift workers’ overtime is based on 3-week average hours exceeding 44 per week.
FastLaneRecruit helps manage payroll and compliance, ensuring smooth operations and accurate overtime pay.
Why Understanding Working Time And Overtime Rates Matters
Singapore has been working hard to change its “workaholic” culture, making labor laws more employee-friendly. Recent amendments, such as increasing the salary cap for overtime pay, now cover more employees. These changes encourage fair compensation and help employers avoid disputes.
For business operating in Singapore, knowing these rules is essential for:
- Ensuring employees are properly compensated
- Avoiding fines or penalties for non-compliance
- Promotion a healthy work-life balance
Standard Working Hours in Singapore
In Singapore, employees generally work up to 44 hours per week, with a daily limit of 12 hours per day.
Important Rules on Standard Working Time
- Breaks are not counted in working hours.
- For full-time employees, the 44-hour week can be spread over 5 or 6 days.
- Shift workers may follow different schedules but they must also meet labor standards.
It is important to note that overtime only applies if an employee works beyond these standard hours.
How To Calculate Overtime Rates
Overtime pay ensures employees are rewarded for additional hours. In Singapore, overtime is calculated at 1.5 times the employee’s basic hourly rate.
Here’s the formula for overtime pay:
Overtime Pay = (hourly Rate x 1.5) x Overtime Hours
Example Calculation:
If and employee’s hourly wage is $10 SGD, and they worked 4 overtime hours:
Overtime Pay = (10 x 1.5) x 4 = $60 SGD
Employers are required to pay overtime within 14 days of the salary period.
Limits On Overtime & Special Exceptions
Monthly Overtime Limit
In Singapore, the maximum overtime limit is 72 hours per month.
However, certain exceptions allow employees to work beyond 12 hours a day:
- Accidents or emergencies that require immediate response
- Essential services related to national security or public health
- Unforeseeable interruptions that impact business operations
If an employer needs workers to exceed 72 overtime hours in a month, they must apply for an exemption from the Ministry of Manpower.
Overtime Rules for Shift Workers
Shift workers have slightly different rules for calculating overtime. Overtime is applied if they work more than an average of 44 hours over 3 consecutive weeks.
Examples of Overtime Calculations
| Scenario | Category | Regular Hours Worked | Overtime Hours Worked | Calculation | Total Overtime Pay |
| Employee working 2 extra hours on a weekday | Regular Employee | 8 hours/day (5 days) | 2 hours | (Hourly Rate × 1.5) × 2 hours | E.g., SGD 10 × 1.5 × 2 = SGD 30 |
| Shift worker with 136 hours over 3 weeks | Shift Worker | 44 × 3 = 132 hours | 4 hours | (Hourly Rate × 1.5) × 4 hours | E.g., SGD 12 × 1.5 × 4 = SGD 72 |
| Employee working 8 extra hours on a public holiday | Regular Employee | 8 hours + 8 overtime | 8 hours | (Holiday Pay + (Hourly Rate × 1.5) × 8) | E.g., 100 + (10 × 1.5 × 8) = SGD 220 |
| Employee worked beyond 72 OT hours/month | Regular Employee | 44 hours/week + 80 OT/month | Exceeds limit by 8 hours | Exemption required; otherwise, 8 hours | N/A until exemption approved |
| Shift worker averaging 43 hours/week over 3 weeks | Shift Worker | 43 × 3 = 129 hours | 0 overtime hours | No overtime since hours are below the 44-hour average | SGD 0 |
Rest Days & Public Holidays
Employees are entitled to at least one rest day per week, usually on Sunday. Shift workers can take a 30-hour continuous rest period that may extend into the following Monday.
Employers cannot force employees to work on a rest day unless there are emergencies. If work is performed on a public holiday or rest day, employees must be compensated with:
(Overtime Pay) + (Holiday/Rest Day Pay)
Time Off in Lieu (TOIL) Vs. Overtime Pay
In Singapore, overtime pay cannot be replaced with time off for employees covered under Part IV of the Employment Act. These employees must receive 1.5x their hourly wage for overtime.
For other employees, the right to time off in lieu depends on the terms of their employment contract. Employers should clearly outline these policies to avoid misunderstandings.
How FastLaneRecruit Can Help with Payroll & Compliance
Managing overtime calculations and payroll can be time-consuming. Mistakes in payroll can lead to disputes or fines. With FastLaneRecruit’s HR and payroll outsourcing services, you can eliminate the hassle and ensure compliance with Singapore’s labor laws.
Benefits of Outsourcing Payroll with FastLaneRecruit:
- Accurate overtime calculations and on-time payments
- Compliance with labor laws and government regulations
- CPF contributions and tax filing managed by experts
- Focus on growing your business while we handle the administrative tasks
Learn more about how FastLaneRecurt can support your business today!
Conclusion
Complying with Singapore’s working time and overtime rules is essential to avoid disputes and maintain employee satisfaction. By partnering with FastLaneRecruit, you can streamline your payroll process and focus on business growth.
Don’t let payroll compliance be a headache. Contact FastLaneRecruit today and let us handle your HR and payroll needs!
Frequently Asked Questions
What is the legal maximum for overtime work?
Employees can work a maximum of 72 overtime hours per month unless an exemption is approved.
Can employers give time off instead of paying overtime?
For employees under Part IV of the Employment Act, overtime pay is mandatory. For others, it depends on the employment contract.
When should overtime payments be made?
Overtime pay must be made within 14 days after the end of the salary period.
How is overtime calculated for shift workers?
Overtime applies if the average working hours exceed 44 hours over three weeks.
