Employers in Singapore have to be familiar with the Enlistment Act. This is because male employees up to 50 years (for officers) and 40 years (for the rest) may be required to report for In-Camp Training (ICT).
Potentially, your business operations may be disrupted as employees may be required to attend up to 40 days of ICT a year. While NSmen are rarely called up for the full 40 days a year, employers can expect between 1 to 2 weeks of reservist duties each time employees are called up.
When an employee has to report for in-camp training, employers are required to grant them a leave of absence for the duration of his service.
Similarly both male and female employees may also be eligible to be SAFVC Volunteers.
Read Also: 17 Types of Leaves Offered By Singapore Companies (Statutory And Non-Statutory)
How Long Will Employees Be On In-Camp Trainings (ICTs)?
NSmen will be given an official SAF100 notice, with their call-up details, such as the reporting date, time, venue and other information. This should be shared with employers as soon as possible, so alternative work arrangements can be made to support the person’s absence during ICT.
There are four main types of In-Camp Training:
#1 High-Key Training
Training sessions will be 7 days or more. NSmen will be notified 6 months in advance.
#2 Low-Key Training
Training sessions will be less than 7 days. NSmen will be notified 3 months in advance.
#3 Make-Up Training (MUT)
NSmen will be notified 1 month in advance.
#4 Other Call-Up Activities
NSmen will be notified 1 month in advance.
While deferment is “Strongly discouraged”, employers are able to defer their employees’ ICT for certain reasons. This may include if they have 1) just started work in the last 3 months, 2) are sending their employees for training or 3) have 2 or more employees in the same capacity in the same department getting a call-up in the same period.
Even when deferment is granted, Such NSmen may be required to attend Make-Up Training (MUT). In such cases, employers will only get a 1-month advance notice rather than 3 to 6 months.
Read Also: Supporting Staff Who Are NSMen: Here Are 5 Things Employers’ Need To Know
How Much Will Employers Have To Pay Their Employees When They Go For Reservist Training?
According to the Enlistment Act, employers must ensure that their NSmen employees do not suffer a loss in their civilian income because of their obligations to fulfil NS duties.
When an employee attends their ICT, they will only be eligible for the Service Pay according to their rank and vocation. The base Service Pay is $1,600 per month.
If there is any shortfall in their civilian pay, employers are obligated to ensure they are “not made worse off financially” by ensuring they can claim a Make-Up Pay (MUP).
Employers can do so in two ways.
#1 DIRECT Scheme
Employers are encouraged to opt for the Direct Reimbursement to Employers of Claims for NS Training Scheme (DIRECT) scheme. In this scheme, employers continue to pay their employees their full salary as usual during the month, inclusive of additional payments, such as. overtime pay, or variable payments, such as commissions. Additional payments should be based on the average past payments received before their ICT.
You help your employees claim for their Make-Up Pay (MUP) and receive the reimbursement directly from the government. Your employees will not be required to make any claims. Your claim should be submitted 2 weeks before the commencement of your employee’s ICT. You may register for the DIRECT Scheme, and update your company’s bank account details, via the ‘Employee Payment Management’ eService on the OneNS portal.
An auto-generated MUP amount will be available for viewing on the ‘Employee Payment Management’ eService, about one month before the start of your employee’s ICT. Any adjustments or new claims should be submitted two weeks before the start of their ICT.
#2 Deducting Pay For Their Reservist Training (i.e. NSman Make Their Own Claim)
The second option is where employers deduct their NSman’s salary for the days they were in ICT. An auto-generated MUP amount, based on past CPF contributions, will be paid directly to employees – making up for the shortfall between their service pay and their civilian pay.
Example Of Calculation For MUP
For example:
- An employee is earning $4,400
- He has a 5-day work-week
- His Monthly Rank and Vocation Allowance was $700. Firstly, the base NS Pay that NSmen can claim for ICT is $1,600 (since 12 September 2022).
If he goes for ICT for 15 days (comprising 11 weekdays), and works for his employer for the remaining 11 weekdays during the month,
- His employer has to continue paying him $4,400 x (11 days worked /22 working days) = $2,200 for the month, as usual
- His base NS pay is $1,000 x (15 ICT days /30 days in the month) = $500 (note that NS pay is based on the calendar month, while his earnings is based on his working days in a month)
- His Make-Up Pay (MUP) is $4,400 – ($2,200 + $500) = $1,700
The employer either claim this amount for him if they are on the DIRECT scheme, or has to certify this MUP amount if they are not on the DIRECT scheme.
In calculating an employee’s salary, their variable wage components such as commissions and overtime pay should also be taken into consideration.
Payment will be made within 10 working days from the start of an employee’s ICT.
Employers Have To Bear Full Amount Of The Employer Share Of CPF Contributions
In either situation, employers have to bear the employer’s share of CPF contributions on their employee’s full salary. This means employers do not get reimbursement for their share of CPF contributions for NSmen who go on ICT.
In the example above, employers will continue making CPF contributions on $2,200 of their employee’s pay as usual. However, they continue to be responsible for CPF contributions on the Employer’s share of the $800 worth of NS Pay and $1,600 worth of Make-Up Pay for the time their employee’s spent away from work.
In a way, this is how employers play their role in supporting the country’s National Service.
Read Also: 4 Types Of Government-Paid Schemes That Employers Also Have To Contribute To
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