By MoneyBees
Estimate your retrenchment benefit on MOM's norm of 2 weeks to 1 month of salary per year of service, your notice pay, the tax and CPF on each, and SkillsFuture Jobseeker Support.
No law sets an amount. MOM's prevailing norm is 2 weeks to 1 month of salary per year of service. The company's finances and industry decide where in that range you fall. In unionised firms whose collective agreement states it, the norm is 1 month per year.
The norm applies to employees with at least 2 years of service. With less, your employer may pay an ex-gratia amount out of goodwill, but there is no set figure.
No. IRAS treats compensation for loss of office as capital and does not tax it, even if your contract sets the amount. Salary in lieu of notice, ex-gratia payments and gratuities are taxable.
No. Neither you nor your employer pays CPF on a retrenchment benefit or on salary in lieu of notice. CPF is still due on your wages up to your last day.
Your salary before any recent pay cut, if the retrenchment comes soon after one. This page uses 12 months of salary over 52 weeks for a week's salary, since MOM sets no formula.
What your contract says. If it says nothing, the Employment Act sets 1 day under 26 weeks of service, 1 week up to 2 years, 2 weeks up to 5 years and 4 weeks for 5 years or more. Your employer can pay salary instead.
Up to S$6,000 over 6 months for citizens and PRs aged 21 and above who lost their job involuntarily and earned an average of S$5,000 a month or less. Monthly payouts are up to S$1,500, S$1,250, S$1,000, then S$750 for 3 months, capped at your past average income.
All salary, unused leave and notice pay are due on your last day of work. Firms with 10 or more staff must also notify MOM within 5 working days of telling you.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).