Employment 2025

SINGAPORE Law and Practice Contributed by: Kelvin Tan, Benjamin Gaw and Lim Chong Kin, Drew & Napier LLC

1.5 Other Employment Terms Public Holidays

Annual Wage Supplement The MOM encourages employers to give employ - ees an annual wage supplement (AWS) comprising a single annual payment on top of an employee’s total annual wage, also known as a 13th-month bonus. The AWS is not compulsory, unless it is provided for in the employment contract. Central Provident Fund (CPF) Contributions During the 2023 Budget, it was announced that the Central Provident Fund (CPF) monthly salary ceiling will be increased. The increment will take place in four stages to allow employers and employees to adjust to the changes. The increment is as follows: • from 1 September to 31 December 2023 – SGD6,300; • from 1 January to 31 December 2024 – SGD6,800; • from 1 January to 31 December 2025 – SGD7,400; and • from 1 January 2026 – SGD8,000. There will be no change to the current CPF annual salary ceiling of SGD102,000. This will be reviewed periodically to ensure that it continues to cover about 80% of employees. To keep pace with rising wages and to strengthen the retirement preparedness of senior employees, there will also be changes to the CPF ordinary wage ceiling and contribution rates. As of 1 January 2025, the cur - rent contribution rates are as follows: • for employees aged 55 and below, the contribution rate is 37% of wages (17% from the employer and 20% from the employee); • for employees aged 56–60, the contribution rate is 32.5% of wages (15.5% from the employer and 17% from the employee); • for employees aged 61–65, the contribution rate is 23.5% of wages (12% from the employer and 11.5% from the employee); • for employees aged 66–70, the contribution rate is 16.5% of wages (9% from the employer and 7.5% from the employee); and • for employees aged 71 and above, the contribution rate is 12.5% of wages (7.5% from the employer and 5% from the employee).

Employees are entitled to paid holidays on public holidays. If the public holiday falls on a non-working day, employees will be entitled to another day off or one extra day’s salary in lieu of the public holiday. If an employee is required to work on a public holiday, the employee is entitled to another day off, time off (only for employees not covered under Part IV of the Employment Act), or one extra day’s salary. Annual Leave At the minimum, the Employment Act requires that employees who have worked for their employer for at least three months are entitled to seven days of paid annual leave within the first 12 months of continuous service with that same employer. Thereafter, employees are entitled to one additional day of paid annual leave for every subsequent year of continuous service with the same employer, subject to a maximum of 14 days’ paid annual leave. Sick Leave The Employment Act requires that employees who have worked for at least three months are entitled to paid outpatient sick leave and paid hospitalisation leave. Employees who have worked for at least six months are entitled to 14 days of paid outpatient sick leave in each year and 60 days of paid hospitalisation leave. The amount of paid outpatient sick leave and paid hospitalisation leave is capped at the amount of the employee’s sick leave entitlement. Where an employee has worked for an employer for less than six months but for at least three months, the employee’s entitlement to paid outpatient sick leave and paid hospitalisation leave ranges from five to 11 days and 15 to 45 days respectively, depending on the length of service. Maternity Leave Under the Child Development Co-Savings Act 2001 (CDCA), female employees are entitled to 16 weeks of paid maternity leave provided that:

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