By MoneyBees
Work out salary in lieu of notice on MOM's gross rate of pay, the notice you owe if your contract is silent, your final pay with unused leave, and the CPF and tax on notice pay.
It is the gross salary you would have earned in the notice you do not serve. MOM uses the gross rate of pay: for a day, 12 x monthly gross / (52 x days worked a week). One month of notice is one month's gross pay.
Your basic salary plus allowances you are entitled to under your contract. MOM leaves out overtime, bonus, AWS, reimbursed expenses, productivity incentives and travel, food and housing allowances.
It depends on your service: less than 26 weeks, 1 day; 26 weeks to under 2 years, 1 week; 2 to under 5 years, 2 weeks; 5 years or more, 4 weeks.
No. MOM says CPF contributions are not required for salary in lieu of notice. Salary you earn while working out your notice does attract CPF as usual.
Yes. IRAS treats payment in lieu of notice as taxable employment income. Compensation for loss of office is not taxable, because it is capital in nature.
Only with your employer's agreement. Your last day moves earlier, you are paid up to that day, and the leave used to offset the notice is not paid out.
Yes, but it must pay you salary in lieu for the rest of the notice, and your final salary on your last day or within 3 working days of it.
Yes, by mutual consent, and MOM says this should be done in writing. Neither side then owes salary in lieu.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).