Singapore Retrenchment Benefits Calculator

Retrenchment Scenarios

Singapore Retrenchment Guidelines

• No Statutory Requirement: No legal requirement for severance pay
• Notice Period: Minimum notice as per Employment Act
• Unused Leave: Must be paid out in full
• Pro-rated Benefits: AWS and bonuses may be pro-rated
• Company Policy: Retrenchment benefits depend on company policy

Notice Period Requirements

• Less than 26 weeks service: 1 day notice
• 26 weeks to 2 years: 1 week notice
• 2 to 5 years service: 2 weeks notice
• 5+ years service: 4 weeks notice
• Payment in Lieu: Can pay instead of notice period

Common Severance Formulas

• 1 Week per Year: Most common formula
• 2 Weeks per Year: More generous companies
• 1 Month per Year: Senior positions/long service
• Capped Amount: Maximum 12-24 months salary
• Minimum Payment: Usually 1-3 months regardless of service

Components of Retrenchment Package

• Severance Pay: Based on years of service
• Notice Pay: Payment in lieu of notice
• Unused Leave: Accumulated annual leave
• Pro-rated AWS: Annual Wage Supplement
• Pro-rated Bonus: Performance or variable bonus

Additional Benefits

• Outplacement Services: Career transition support
• Extended Medical: Continued health insurance
• Training Allowance: Skills upgrading support
• Reference Letters: Employment references
• Flexible Last Day: Time for job searching

Tax Implications

• Taxable Income: Most retrenchment benefits are taxable
• Tax Relief: Some relief for retrenchment benefits
• Lump Sum Tax: May qualify for concessionary tax rate
• CPF Contributions: May be subject to CPF
• Tax Planning: Consider timing of payment

Legal Considerations

• Genuine Redundancy: Must be genuine business need
• Selection Criteria: Fair and objective criteria
• Consultation: Proper consultation with employees
• Alternative Employment: Consider redeployment options
• Union Involvement: Consult with unions if applicable

MOM Notification Requirements

• 5+ Employees: Notify MOM if retrenching 5+ employees
• Advance Notice: 30 days advance notification
• Retrenchment Plan: Submit detailed plan to MOM
• Assistance Measures: Outline support for affected employees
• Reporting: Regular updates to MOM

Employee Rights

• Fair Treatment: Non-discriminatory selection
• Proper Notice: Adequate notice period
• Consultation: Right to be consulted
• Alternative Roles: Consider for other positions
• Appeal Process: Right to appeal decision

Voluntary Separation Schemes

• Enhanced Packages: Better terms than involuntary
• Voluntary Basis: Employee choice to participate
• Age Criteria: Often targeted at older employees
• Early Retirement: Bridge to retirement
• Limited Offer: Time-limited opportunity

Industry Practices

• Banking/Finance: 2-4 weeks per year typical
• Technology: 1-3 weeks per year common
• Manufacturing: 1-2 weeks per year standard
• Government: Statutory minimums usually
• MNCs: Often more generous packages

Negotiation Tips

• Review Contract: Check employment terms
• Company Policy: Understand retrenchment policy
• Precedents: Previous retrenchment packages
• Professional Advice: Consider legal consultation
• Documentation: Get everything in writing

Post-Retrenchment Support

• Career Counseling: Professional guidance
• Job Search Support: Resume writing, interview prep
• Networking: Industry connections
• Skills Training: Upgrading programs
• Financial Planning: Managing transition period

Government Support Schemes

• Career Support Programme: WSG career guidance
• Professional Conversion Programme: Skills conversion
• SkillsFuture Credits: Training subsidies
• Job Matching: Employment facilitation
• Financial Assistance: Temporary support schemes

Documentation and Records

• Retrenchment Letter: Formal notification
• Package Details: Breakdown of benefits
• Payment Schedule: When payments will be made
• Tax Documents: IR8A and other forms
• Reference Letters: Employment references