Singapore: New Amendments to the Employment Act

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According to sources, more Singaporeans will see their employment conditions such as overtime pay and hours of work protected under projected changes to the Employment Act.

Approximately 430,000 more professionals, managers and executives (PMEs) will be covered under the Employment Act when it is amended to remove the S$4,500 salary cap according to a recent statement by Manpower Minister Lim Swee Say in Parliament.

Moreover, other amendments and the removal of the salary cap within Singapore’s main labour law will be introduced in Parliament later this year for implementation by April 2019.

Following these amendments, the PMEs will enjoy core employee benefits under the new Employment Act which includes redress for wrongful dismissal, sick leave payments, timely payment of salary, public holiday and allowable deductions.

Currently, the employment act covers blue collar workers including the majority of technicians, clerical staff and non-manual workers. The minister has stated that with the pay cap removed the coverage will extend to all employees excluding public servants, seafarers and domestic workers as they come under others Acts due to the nature of their employment.