Singapore’s Employment Act Gets a Big Makeover
Picture this: the rulebook that safeguards workers’ rights has just turned into a “one‑size‑fits‑all” menu. From now on, every private‑sector employee—whether a techie, a manager, or even a fresh‑out‑of‑school junior—gets the full dish of benefits: paid sick leave, a sweet seven‑to‑fourteen‑day annual vacation, and protection against being yanked out of their job without a good reason.
No More $4,500 Salary Ceiling
The infamous salary cap that kept the Employment Act (EA) from covering high‑earning PMETs (professionals, managers, executives, & technicians) is finally going out of business. That means the new Act will now touch the growing army of talent that Singapore is projected to have by 2030—about two‑thirds of the local workforce, including 430,000 managers and executives that sat outside the old law’s reach.
What This Means for Everyone
- Every private‑sector employee—from white‑collar workers to manual labourers—gets paid sick leave.
- All workers enjoy a mandatory annual leave of 7‑14 days.
- Wrongful dismissal is now a legal issue you can actually fight.
- Salary disputes will be handled at the Employment Claims Tribunal (ECT).
Big Expansions for Rank‑and‑File Workers
- Part IV of the Act, the protection powerhouse for rank‑and‑file staff, has been beefed up. It now covers higher salaries—an extra 100,000 white‑collar workers who make $2,600 a month instead of $2,500.
- For manual workers (the “blue‑collar” crew), Part IV still protects those earning up to $4,500 per month.
- New rules now set fairer overtime pay and stricter rules around rest days.
How Employers Are Gaining Flexibility
From April, employers can offer alternative time off for staff who clocked hours on a public holiday instead of a full day’s paid leave or a bonus day’s pay. This means more leeway to keep the business running smoothly while still respecting employees’ rights.
Parliament’s Big Blessing
All 17 MPs, plus two from the Workers’ Party, rallied behind the amendments—calling it a “watershed moment” for PMETs earning over $4,500 a month. Labour MP Patrick Tay slammed those “rogue employers” who tried to dodge the law by exploiting the old salary cap. Others, like Daniel Goh, are pushing for even deeper protections: dropping the white‑/blue‑collar divide, safeguarding disabled, older, and gig‑workers. The Ministry ladies responded with a 40‑page reply, emphasizing that the EA is about balancing worker protection with a flexible labor market so jobs can thrive.
What’s Next?
Once the new rules kick in on 1 April next year, employees and businesses alike will have a more streamlined, one‑stop service in the ECT. And, perhaps, a kinder, fairer workplace that looks after both the people who work and the people who run the businesses.
