{"id":7513,"date":"2024-02-06T11:30:00","date_gmt":"2024-02-06T03:30:00","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=7513"},"modified":"2024-02-06T11:36:55","modified_gmt":"2024-02-06T03:36:55","slug":"calculate-overtime-pay-for-your-employees","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/calculate-overtime-pay-for-your-employees\/","title":{"rendered":"How To Calculate Overtime Pay For Your Employees During The Month"},"content":{"rendered":"\n

Employees in Singapore work some of the longest hours. In MOM\u2019s Labour Market Report 3Q2022<\/a>, employees in Singapore worked 43.7 paid hours per week on average. On top of this, they worked 2.3 paid hours of overtime.<\/p>\n\n\n\n

The number of paid overtime hours have been on a steady decline over the past 10 years. On average, employees are working 1.3 hours less paid overtime today compared to 2013<\/a>.<\/p>\n\n\n\n

Part IV of the Singapore Employment Act stipulates that certain employees who work beyond 44 hours per week must be paid overtime pay \u2013 regardless of what their employment contract may say.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>Singapore Employment Act: 10 Statutory Requirements To Pay Employees<\/em><\/strong><\/a><\/p>\n\n\n\n

Which Employees Are Entitled To Overtime Pay In Singapore?<\/strong><\/h3>\n\n\n\n

Part IV of Singapore\u2019s Employment Act only applies to:<\/p>\n\n\n\n

#1 Workmen who do not earn more than $4,500 a month<\/strong>. Workmen are generally those who do manual labour, such as cleaner, construction worker, machine operator, train, bus lorry and van drivers, and others. <\/p>\n\n\n\n

#2 Most employees<\/strong> (other than workmen or those employed in a managerial or an executive position) who do not earn more than $2,600 a month<\/strong><\/p>\n\n\n\n

The salary caps on each employee type exclude overtime pay, bonus, annual wage supplements (i.e. 13th month bonus), productivity incentive payments and any other allowance. Overtime pay is applicable for full-time and part-time employees, as well as other types of employees.<\/p>\n\n\n\n

This also means employees not protected by Part IV of the Employment Act are not entitled to any overtime pay, regardless of how long they may work. Of course, to provide fairer or more competitive remuneration, employers are free to provide overtime pay via employment contracts. Similarly, employees can ensure they are treated fairly with regards to overtime work within their employment contracts.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>Minimum Requirements For Key Employment Terms (KETs) On Employees Contracts<\/em><\/strong><\/a><\/p>\n\n\n\n

What Is Considered (Or Not Considered) Overtime Work?<\/strong><\/h3>\n\n\n\n

Employees protected under Part IV of the Employment Act typically have normal working hours of\u00a0up to 8 to 9 hours per day or 44 hours per week<\/strong>. Any work done beyond this limit is legally considered overtime hours.<\/p>\n\n\n\n

If such employees work:<\/strong><\/td>Contractual Hours (Limit Set By Employment Act)<\/strong><\/td><\/tr>
5 days or less a week<\/td>Up to 9 hours a day or 44 hours a week<\/td><\/tr>
More than 5 days a week<\/td>Up to 8 hours a day or 44 hours a week<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Employers are required to provide employees with details on the number of hours they work within their payslips. This is to reduce instances of disputes as well as provide employees with a clear record of their overtime hours.<\/p>\n\n\n\n

Each month, employees are only allowed to work up to 72 overtime hours<\/strong>. Each day, employees are also not permitted to work beyond 12 hours unless<\/strong> there is:<\/p>\n\n\n\n