As an employer in Singapore, it's crucial to understand your obligations when it comes to national service compensation for your employees. This guide will provide you with a comprehensive overview of NSMEN make-up pay, ensuring you remain compliant with the relevant laws and regulations.
What is NSMEN Make-Up Pay?
National Service (NS) in Singapore is a policy which makes service in the Army or uniformed services compulsory for all male Singaporean citizens and second-generation permanent residents. The period of active service is approximately 2 years full-time, after which they will remain an Operationally Ready National Serviceman (ORNS) and transition into a 10-year training cycle. During this time, they may be called up to participate in up to 40 days of ORNS activities annually.
NSMEN make-up pay, also known as national service make-up pay or NS pay, is a legal requirement for employers in Singapore. It involves compensating employees who are required to fulfill their national service duties, such as Operationally Ready National Service (ORNS) or In-Camp Training (ICT).
Service Pay (SP)
Service Pay is an allowance paid to full-time NS, and dependent on their rank and vocation. When participating in ORSM activities, the pay will be pro-rated based on the duration of participation.
Make-Up Pay (MUP)
Make-Up Pay is the difference between civilian income loss and Service Pay, for the duration of a serviceman’s ORNS activity. If the civilian income loss is lower than the service pay for each ORNS, no make-up pay will be payable.
Why is NSMEN Make-Up Pay Important?
Providing NSMEN make-up pay is not just a legal obligation; it's also a matter of supporting your employees and recognizing their commitment to national service. By compensating them fairly, you foster a positive work environment and demonstrate your appreciation for their service to the country.
Calculation of NSMEN Make-Up Pay
Before start calculating, we need to know that the basic formula of MUP is: Make-Up Pay = Civilian Income Loss – Service Pay.
For example, if an employed NSman who is earning $6,000 a month and has a 5-day work week. And if he goes a High-Key ICT during 1 to 15 Nov 2023 with $1,000 monthly SP, then:
- Calendar days for NS Activity: 15 days
- Working days for NS Activity: 11 days (inclusive of 1 day of Public Holiday)
- Total working days in Nov 2023: 22 days (inclusive of 1 day of Public Holiday)
- Days of worked: 22 days - 11 days= 11 days
The calculation will be:
- Civilian Income Loss: $6,000 × (11 working days for NS Activity ÷ 22 total working days) = $3,000
- SP (Service Pay): $1,000 × (15 calendar days for NS activity ÷ 30 days in the month) = $500
- MUP (Make-Up Pay): $3,000 + $500 = $2,500
Please note that the base NS Pay that NSmen can claim for ICT is $1,600 since 12 September 2022. Click here for the further Sample Calculations section for NSmen Make-Up Pay from ns.sg.
NS Make-up Pay Claims
A make-up pay claim should be done at least 14 days before ORNS activity begins and the deadline is limited within 3 months from the payment of your employee's NSmen service pay. Any late submission after 3 months will not be accepted. However, if the supporting document is needed and it was not available at the point of submission, they can submit it later.
There are 2 ways of claiming for NS make-up pay:
Registered with DIRECT scheme
In the DIRECT scheme, employers will continue to pay the employee salary in full while submitting the NS make-up claim for their employee. Ministry of Defence (MINDEF) will reimburse the employer directly. In this way, no adjustment of salary is required.
- Employer submits a Make-Up pay claim with MINDEF through corp pass at least 14 days before your employee’s ORNS activity date. The make-up pay claim form is required. Required documents for submission.
- Employer continues to pay the employee his full salary.
- MINDEF will credit both the Service Pay and/or Make-Up pay to the employer.
If you fail to meet the 14 day deadline, still proceed with submission. Late submission is allowed according to the NS Call Centre, however, the Make-Up pay claim will be regarded as “Not Registered with the DIRECT scheme”.
Not registered with the DIRECT scheme
Under the Not-DIRECT scheme, the employer or employee will submit a NS make-up claim for the employee and deduct from their salary. MINDEF will reimburse the employee directly. In this way, salary adjustment is required.
- Employer submits a Make-Up pay claim with MINDEF through corp pass at least 14 days before your employee’s ORNS activity date. The make-up pay claim form is required.
- Required documents for submission.
- The employer continues to pay the employee but deducts the claimed amount.
- MINDEF will credit both Service Pay and/or Make-Up pay to the employee.
Swingvy payroll software supports the management and deductions of NS Pay. Find out more about the payroll platform and speak to our team for more information.
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