How to Calculate Overtime Pay in Singapore
Overtime pay is one of the most common payroll issues in Singapore, especially for employees covered under Section 4 of the Employment Act , which sets specific rules on how overtime is defined and compensated for workmen earning up to SGD 4,500 a month and non-workmen earning up to SGD 2,600. So, how is overtime calculated, and what should businesses keep in mind when processing payroll in Singapore? Understanding overtime pay Overtime refers to any work performed beyond normal contractual hours, excluding meal breaks. The basic formula for overtime pay is: 1.5 × hourly rate × number of overtime hours worked But there are important details to note, from eligibility rules to day types, and caps on the total number of overtime hours. Who qualifies for overtime pay? · Workmen earning up to $4,500 monthly · Non-workmen earning up to $2,600 every month Overtime pay on a regular work day On a normal working day, ov...