Our previous post on payroll in Singapore highlighted some of the most important aspects of the nation’s employment policies, including its Employment Act, social security system and foreign worker and skills development levies. Another crucial factor of payroll in Singapore is the nation’s complex leave policies. As there can be serious repercussions for employers who fail to grant their employees appropriate leave, any organization planning to hire workers in Singapore should become familiar with the following policies:

Annual Leave
All employees who have worked for the employer for at least three months are entitled to paid leave. They receive seven days of annual leave for their first year of service, gaining an additional day for each year of service, up to 14 days after eight years. The employer can grant unpaid leave if an employee has already used up their paid leave, or they can deduct excess leave from the employee’s salary.

Maternity Leave
According to Singapore’s Child Development Co-Savings Act, female employees are entitled to take 16 weeks of maternity leave, four weeks taken before delivery and 12 weeks after she gives birth. The employer must pay the usual salary for the first eight weeks of maternity leave, and any pay after that period is voluntary and subject to contractual agreement. If the employee qualifies for government-paid maternity leave, the employer can claim reimbursement from the government, capped at $10,000 per every four weeks of leave.

Childcare Leave
Employees in Singapore are entitled to six days of paid childcare leave if they are lawfully married (including divorced or widowed parents) and with the employer for at least three months, and if their child (including legally adopted children and stepchildren) is less than seven years of age and a citizen of Singapore. The first three days of childcare leave are paid for by the employer, and the last three days are government-paid, with a cap of $500 per day.

Sick Leave
Singapore’s Employment Act ensures employees receive paid sick leave, as long as they have been working for their employer for at least three months, have informed their employer of their absence within 48 hours and have their leave certified by a company or government doctor. Employees are eligible for 14 paid sick days per year and 60 days of paid hospitalization leave, if required. The employer is required to bear the costs of an employee’s medical consultation fee, with other medical costs determined by the employment contract or collective agreement between the company and its union.

By becoming familiar with these policies, employers can be sure they are in compliance with all of Singapore’s leave rules and requirements and understand what their obligations are. Still, employers have many responsibilities beyond these regulations. Check back soon for our next blog post, which will provide an overview of Singapore’s complex income tax rules – another critical aspect of hiring employees in the country.