Demystifying Overtime Pay: A Definitive Guide for Employees in Singapore
Understanding overtime pay is important for employees who
often find themselves working beyond their normal hours. In this guide, we
delve into how overtime pay works, who is qualified to get overtime pay, and
the legal framework that governs this entitlement to help you stay
well-informed about your rights.
Understanding overtime pay
In Singapore, “overtime work” is defined
as any work exceeding the usual hours of work—not including breaks. When you
work more than 8 hours a day or 44 hours a week, those extra hours are
considered overtime.
Employers are required to pay you 1.5
times your hourly basic rate for any overtime you perform.
The law caps the amount of overtime: you shouldn't work more than 12 hours a
day, and your overtime shouldn't exceed 72 hours in a month.
How is overtime pay calculated in
Singapore?
For detailed calculations tailored to your
situation, use this overtime
pay calculator by the Ministry of Manpower.
Who is entitled to overtime pay?
Not everyone is eligible for overtime pay.
Under the Employment Act, only the following types of workers can claim
overtime pay:
·
Non-workmen with a basic monthly salary of no
more than $2,600
Workmen earn up to $4,500 a month.
Note that managers and executives do NOT
qualify for overtime compensation.
Who is considered a workman?
A workman typically performs manual labour
and includes categories like artisans, apprentices, commercial vehicle
operators, and those supervising manual workers but also engaging in manual
work more than half the time.
Who is a non-workman?
Non-workmen, whose overtime rate is capped
at a salary level of $2,600 or an hourly rate of $13.60, also qualify for
overtime pay for work beyond their contractual hours.
Maximum hours of work
As mentioned, you legally cannot be made
to work more than 12 hours a day. However, exceptions allow for longer hours in
specific scenarios such as emergencies, essential community services, urgent
machinery work, or unforeseen work interruptions.
Employers must seek an overtime exemption
to require more than the standard hours, with a strict limit of 72 overtime
hours per month.
Overtime on rest days and public
holidays
Overtime work on rest days or public
holidays includes additional calculations for rest day or public holiday pay on
top of the 1.5 times hourly rate for overtime hours worked.
Information for employers
Overtime allows companies to respond to
sudden surges in demand, unforeseen challenges, or tight deadlines. Compared to
hiring temporary workers, overtime can be a more cost-effective option for
short-term needs.
However, manually keeping track of
individual employee hours, pay rates, and overtime eligibility can be
time-consuming and error-prone—especially for larger companies. Adhering to all
legal requirements regarding overtime can also be complex and require careful
monitoring. Any inaccuracy in calculations or lack of clarity in policies can
result in employee disputes and potential audits from regulatory bodies.
How to manage overtime pay using
technology
Accurately managing and processing
overtime can be challenging without the right tools. If you’re still using
manual methods, it’s time to embrace technology.
Adaptive Pay introduces an efficient
solution with its Rostering and Attendance Tracking module. This system
automates overtime calculations along with public holidays and off days, integrating
data directly into the Payroll module. It enables employers to configure
multiple overtime schedules and shifts according to their specific operational
needs. It also offers easy rostering features to simplify administration.
Ready to streamline your overtime
management process? Adaptive Pay can greatly reduce the complexity to ensure
accuracy and help you comply with labour laws. Book a demo today to see how it
works.
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