Finance & Compliance

A Comprehensive Guide to Calculate Overtime Pay in Singapore

Katie Ash

Jan 7, 2024
Let's discuss overtime hours and overtime pay, a common topic among the workplace.

In Singapore, for people covered under Section 4 of the Employment Act have regulated working hours, including overtime hours and overtime pay. The working week (Monday to Sunday) is divided with normal working days and rest day(s).

Contractual working hours are the hours that you and your employer have agreed to in the employment contract.

What is Overtime (OT) Pay?

Overtime definition: all work in excess of the normal hours of work, excluding breaks.

The basic overtime pay rate is 1.5x hourly rate x overtime hours worked. However there are a number of additional requirements to meet overtime payments, as well as differing calculations depending on the type of day overtime was worked on.

Who is entitled for Overtime Pay?

You can claim overtime pay if you are:

  • A non-workman earning up to $2,600.
  • A workman earning up to $4,500.

What is the Overtime Pay Rate in Singapore

Below is an outline of current Singapore regulations in relation to paying overtime hours to employees covered under section 4 of the Employment Act:

Overtime Payment Requirements in Singapore
Singapore Overtime Pay calculation (Image/ Swingvy)

Overtime Pay on a Normal Work Day

On a normal workday, overtime pay rate is payable at 1.5x the standard hourly rate. However, it’s important to note that this is not calculated daily, but weekly, and paid only if the worker works more than 44h per week.

Working time is also averaged over a 2-week period (or three weeks if worker works shifts up to 12h/day). So if a worker works 45 hours in a week, but only 40 hours the following week, they will not qualify for overtime payments as the average working week was 42.5h during this period. Any overtime salary payout is capped at 72 hours per month.

Overtime Pay on a Rest Day

There are multiple overtime rates applicable if a worker works on a rest day.

  • If they work less than half of the hours of a normal work day, they are entitled to a full days salary.
  • If they work more than half the hours of a usual work day they should be paid 2 full days salary.
  • If they work more than the hours they would usually work on a normal work day, they are entitled to two days full salary, plus overtime hours at 1.5x their usual hourly rate.

Overtime Pay on a Public Holiday

Here's a calendar of the 2023 public holiday dates in Singapore.

Public Holiday falls on a Normal Work Day

If a worker works a public holiday, they are entitled to a normal days pay, plus an extra full days pay, plus overtime at 1.5x their usual hourly salary if more than the usual number of working hours are worked.

Learn more about overtime pay rate on a public holiday  (Image:Pexels)

Public Holiday falls on a Rest Day (ie, Sunday for 5-day week workers)

Rest day pay applies, plus overtime if more than usual hours are worked, plus the next day off as a public holiday in lieu. If another day will not be given off, an extra full days pay should be given.

Can employees take time off instead of overtime pay?

It also depends on if your employee is covered under Part 4 of the Employment Act.

  • Employee who IS covered under Part 4 : cannot substitute overtime pay with time off. Overtime must be paid at the rate of at least 1.5 times the hourly basic rate of pay.
  • Employee who IS NOT covered under Part 4 :  the entitlement would depend on what is in the employment contract.


Swingvy Makes Calculating and Paying Overtime Easy

Swingvy Time
makes time and attendance tracking of staff simple. Employees simply clock in and out on their Swingvy mobile app to record their attendance digitally. Timesheets are saved daily, and any overtime worked can be submitted through to their approval manager in just a click.

Any overtime hours that have been approved can be push directly to Swingvy payroll with the payroll and time integration. These hours will be visible as itemised lines on the employees payslips for the next payroll.

Find out more about Swingvy Time and Swingvy Payroll, or speak to the team for a free demo of the platform, and free access to try it for yourself.

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