By MoneyBees
Estimate your retrenchment benefit in Singapore on MOM's norm of 2 weeks to 1 month of salary per year of service, plus notice pay, which parts IRAS taxes, and the SkillsFuture Jobseeker Support you may get.
Use your salary before any recent pay cut, as MOM advises.
Check your contract or collective agreement. Unionised firms with one usually pay 1 month a year.
Retrenchment benefit
$20,769
2 weeks a year, not taxable, no CPF
Notice pay
$5,538
taxable, no CPF
Jobseeker Support
$6,000
over 6 months, if you meet the job-search conditions
| Per year of service | Benefit |
|---|---|
| 2 weeks a year | $20,769 |
| 3 weeks a year | $31,154 |
| 1 month a year | $45,000 |
7.50 years of service, part years pro-rated; your employer may count full years only. A week's salary here is 12 months' salary over 52 weeks.
| Payment | Income tax | CPF |
|---|---|---|
| Retrenchment benefit (loss of office) | Not taxable | None |
| Salary in lieu of notice | Taxable | None |
| Ex-gratia or gratuity | Taxable | - |
| Salary to your last day | Taxable | Yes |
Leave your email and we'll save this scenario so a MoneyBees adviser can follow up.
Or book a free chat if you'd rather talk it through.
Paid monthly while you search, capped at your past average income. It stops when you find a job.
| Month | Up to |
|---|---|
| Month 1 | $1,500 |
| Month 2 | $1,250 |
| Month 3 | $1,000 |
| Month 4 | $750 |
| Month 5 | $750 |
| Month 6 | $750 |
SkillsFuture Jobseeker Support pays up to S$6,000 over 6 months to citizens and PRs aged 21 and above who lost their job involuntarily, earned an average of S$5,000 a month or less, worked at least 6 of the last 12 months, live in a home with an Annual Value of $31,000 or less and have not had a payout in 3 years. Each month you earn points from job applications, courses and career coaching sessions.
The Employment Assistance Payment is not a retrenchment benefit. It is for workers who reach the retirement age of 64 and are not offered re-employment: 3.5 months' salary, from S$6,250 to S$14,750.
You earn S$6,000 a month and have worked 7 years 6 months. A week's salary is S$1,385. At 2 weeks a year the benefit is S$20,769; at 1 month a year it is S$45,000. Neither is taxed and no CPF is deducted. Paid 4 weeks' salary in lieu of notice, you get S$5,538 more, which is taxable.
Figures checked 3 Oct 2026.
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.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).