Employment Act Part IV applies to workers earning up to $4,500/month.
Employment Act standard: 44 hours/week (or 8 hours/day).
Maximum 72 OT hours per month (approx. 18 hours/week) under Employment Act.
Hourly Basic Rate
$15.73
MOM formula
OT Rate (1.5x)
$23.60
per OT hour
Monthly OT Pay
$1,022.73
gross
Part IV of the Employment Act covers overtime, rest days, and public holidays for non-managerial/non-executive employees earning up to $4,500/month basic salary, and all workmen regardless of salary.
OT Rate: The statutory rate is 1.5 times the hourly basic rate of pay. The MOM formula for hourly rate is: (12 x Monthly Basic Salary) / (52 x 44).
OT Cap: An employee cannot work more than 72 hours of overtime per month. This limit applies across all jobs if the employee has multiple employers.
Rest Day Work: Work done on a rest day at the employer's request is paid at 2x the daily rate (for a full day). Work on a public holiday is paid at 2x the gross rate of pay in addition to the holiday pay.
CPF: Overtime pay is subject to CPF contributions as part of the employee's total wages, up to the applicable CPF ceilings.
Who is eligible for overtime pay in Singapore?
Under Part IV of the Employment Act, employees earning a basic monthly salary of $4,500 or less (non-workmen) or all workmen (manual labour) regardless of salary are entitled to overtime pay. Managers and executives earning above $4,500/month are not covered by Part IV.
What is the overtime rate in Singapore?
The Employment Act mandates overtime at 1.5 times the hourly basic rate of pay. Overtime is payable for work exceeding 8 hours/day or 44 hours/week (whichever gives the greater OT).
Is there a maximum number of overtime hours?
Yes. Under the Employment Act, an employee cannot work more than 72 hours of overtime per month. The Ministry of Manpower (MOM) can grant exemptions in certain cases.
How is overtime calculated for monthly-rated employees?
For a monthly-rated employee, the hourly rate is: (12 x Monthly Basic Salary) / (52 x 44). Overtime pay = Hourly Rate x 1.5 x Number of OT hours.
How overtime is calculated under the Employment Act and how it affects your tax
Who is entitled to overtime pay in Singapore?
Under the Employment Act, you are entitled to overtime pay if you are a non-workman earning up to S$2,600 per month, or a workman (manual labour) earning up to S$4,500 per month. Managers, executives, and professionals earning above these thresholds are not covered by the overtime provisions, even if they work extra hours.
How is overtime pay calculated?
Overtime must be paid at 1.5 times your hourly basic rate. Your hourly rate is calculated as: monthly basic salary divided by 26 days, then divided by 8 hours. For example, if your monthly salary is S$2,000, your hourly rate is S$2,000 / 26 / 8 = S$9.62. Overtime pay is S$9.62 x 1.5 = S$14.42 per overtime hour.
Is there a cap on how much overtime you can work?
Yes. The Employment Act limits overtime to 72 hours per month. Your employer cannot ask or allow you to work more than this. The maximum working hours including overtime is 12 hours per day. If your employer requires you to exceed these limits, they need an exemption from the Ministry of Manpower (MOM).
How is overtime pay on rest days and public holidays calculated?
Working on a rest day at your employer request earns you 2 times your daily rate for a full day. If you work overtime on top of that, the extra hours are at 1.5 times your hourly rate. On a public holiday, you get an extra day pay plus 1.5 times for any overtime hours. These higher rates make weekend and holiday work significantly more expensive for employers.
Is overtime pay taxable in Singapore?
Yes. All overtime pay is part of your total employment income and is taxed at the same progressive rates as your regular salary. IRAS does not give any special treatment or exemption for overtime earnings. If overtime pushes your annual income into a higher tax bracket, that portion will be taxed at the higher rate.
Do CPF contributions apply to overtime pay?
Yes. CPF contributions are calculated on your total wages, which include overtime pay. Both the employee and employer contribute CPF on overtime earnings, subject to the monthly ordinary wage ceiling of S$6,800. If your total monthly wages (including overtime) exceed S$6,800, CPF is only calculated on the first S$6,800.
What if your employer refuses to pay overtime?
If you are covered by the Employment Act and your employer does not pay the correct overtime rate, you can file a claim with the Tripartite Alliance for Dispute Management (TADM). Keep records of your hours worked — a time card or written log is useful evidence. Claims should be filed within one year of the overtime being worked.
IRAS-Aligned: Based on 2025 IRAS rates and thresholds. For personal advice, speak to a qualified tax professional.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms