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SINGAPORE · FOR MANAGERS

Singapore retrenchment benefit calculator

In Singapore, employees with at least 2 years of service are eligible for a retrenchment benefit. The amount is not set by law; MOM says the prevailing norm is between 2 weeks and 1 month of salary for each year of service.

2 weeks per year of serviceS$12,500.00
1 month per year of serviceS$25,000.00

Based on 5.0 years of service. Many employers pro-rate part years; the contract or collective agreement may set the amount.

What the law and guidelines say

  • Eligibility: at least 2 years of service with the employer.
  • Amount: the prevailing norm is 2 weeks to 1 month of salary per year of service. In unionised companies, the norm is 1 month per year.
  • Notice: give notice as the contract requires, and longer where you can.
  • Employers with 10 or more employees must notify MOM within 5 working days of telling an employee they are retrenched.

Doing it well

  • Tell people in person, in private, with HR present, and give them the written details the same day.
  • Be clear and honest about why. Do not blame the person for a business decision.
  • Offer practical help: references, time off for interviews, and job-search support.
  • Talk to the remaining team the same day. They will be worried too.

General information for managers, checked in October 2026. It is not legal advice, and contracts or company policies may give more. Always check the official source: MOM: responsible retrenchment.

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