Overtime Pay in Singapore for Employers: Who Qualifies, the 1.5x Formula and the 72-Hour Limit

Short answer: A Singapore employer must pay overtime to employees covered by Part 4 of the Employment Act: workmen earning a basic monthly salary of S$4,500 or less and non-workmen earning S$2,600 or less. Overtime is at least 1.5 times the hourly basic rate, capped at 72 hours a month, and payable within 14 days after the salary period ends.

Overtime pay in Singapore for employers is one of the most common sources of salary claims, mainly because the rules apply to only part of the workforce and the formula uses basic salary rather than gross pay. This guide sets out who is covered, how to calculate the rate using the Ministry of Manpower (MOM) formula, the hour limits, CPF treatment, the payslip and record-keeping rules, and what happens when overtime is underpaid.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

Which employees are entitled to overtime pay in Singapore?

Only employees covered by Part 4 of the Employment Act have a statutory right to overtime pay. Everyone else is paid overtime only if their employment contract says so.

Part 4 is the part of the Act that regulates rest days, hours of work and related conditions. According to MOM, it applies to:

• a workman earning a basic monthly salary of S$4,500 or less; and
• an employee who is not a workman, is covered by the Employment Act, and earns a basic monthly salary of S$2,600 or less.

A workman is, in general, someone whose work is mainly manual labour, including supervisors who spend more than half their time on manual work and jobs listed in the First Schedule to the Act, such as cleaners, construction workers, machine operators and lorry, van, bus and train drivers.

Basic salary is the figure that matters. It excludes overtime, bonuses, annual wage supplement, productivity incentive payments, reimbursement for special expenses and all allowances. An administrative assistant on S$2,400 basic plus S$400 in allowances is therefore still inside Part 4, even though gross pay is S$2,800. MOM provides a self-assessment tool if a role is borderline. For a wider view of the Act, see our guide to the key provisions of the Singapore Employment Act.

Are managers and executives entitled to overtime?

No statutory entitlement applies. MOM states that Part 4 does not cover managers or executives, so their overtime, if any, depends on the contract.

MOM describes managers and executives as employees with executive and supervisory functions, such as making decisions on recruitment, discipline, termination, performance assessment and reward, formulating strategy, or running the business. A job title alone does not decide the point. Calling a S$2,200 clerk an “executive” does not take that person outside Part 4 if the role has no executive or supervisory content.

Good practice is to state clearly in the Key Employment Terms whether the employee is overtime-eligible, the normal working hours, and how any contractual overtime or time off in lieu works for staff outside Part 4.

How do you calculate overtime pay as a Singapore employer?

Overtime pay equals the hourly basic rate of pay x 1.5 x the number of overtime hours worked. Overtime is all work beyond the normal contractual hours, excluding breaks.

The hourly basic rate depends on how the employee is paid:

The denominator of 52 x 44 equals 2,288 hours a year, based on the 44-hour normal working week. For non-workmen, MOM caps the overtime rate at the S$2,600 salary level, or an hourly basic rate of S$13.60. Follow these steps each payroll cycle:

1. Confirm the employee is covered by Part 4 (workman or non-workman, and basic salary).
2. Work out the hourly basic rate using the formula for that pay type.
3. Count overtime hours from approved timesheets, excluding meal and rest breaks.
4. Multiply hourly basic rate x 1.5 x overtime hours.
5. Add any separate rest day or public holiday pay.
6. Pay within 14 days after the salary period ends and show the figures on the itemised payslip.

What does overtime pay look like in worked examples?

The table below applies the MOM formula to monthly-rated employees. Hourly rates are rounded to the cent; your payroll system may round slightly differently.

The two most common errors are using gross pay instead of basic pay, and using a home-made divisor instead of the MOM formula. Where work on a rest day or public holiday goes beyond the usual daily hours, the extra hours are paid as overtime on top of the rest day or public holiday pay.

What are the limits on working hours and overtime?

A Part 4 employee may work no more than 72 overtime hours in a month and, generally, no more than 12 hours in a day. Normal contractual hours are capped at 44 a week.

• Normal hours: up to 9 hours a day or 44 hours a week for staff working 5 days or less a week; up to 8 hours a day or 44 hours a week for staff working more than 5 days.
• Daily cap: 12 hours a day, except for an accident or threat of one, work essential to the life of the community, defence or security, urgent work on machinery or plant, or an unforeseeable interruption of work.
• Overtime exemption: an employer needing staff to work more than 12 hours a day (up to 14 hours), or more than 72 overtime hours a month, must apply to MOM for an overtime exemption. MOM lists some work activities for which no exemption is granted.
• Rest days and public holidays: work on these days does not count towards the 72-hour limit, except for hours worked beyond the usual daily working hours.

MOM’s hours of work, overtime and rest day page sets out these rules, including shift and alternate-week arrangements.

Can you give time off instead of overtime pay?

Not for Part 4 employees. MOM states that an employer cannot substitute overtime pay with time off for employees covered by Part 4; overtime must be paid at least 1.5 times the hourly basic rate.

For staff outside Part 4, time off in lieu is allowed if the contract or company policy provides for it. MOM also states that overtime pay applies only where the employer requires the employee to work beyond normal hours, and encourages employers to communicate a clear overtime approval policy. A written approval process (for example, supervisor sign-off on a timesheet) is the simplest way to avoid disputes over unrequested overtime.

How does overtime work for part-time employees?

Part-time employees, meaning those working less than 35 hours a week, are paid at their normal hourly basic rate for extra hours up to a comparable full-time employee’s normal hours, and at 1.5 times only beyond that.

MOM’s example: a part-timer normally works 4 hours a day, a full-time colleague works 8 hours, and the hourly basic rate is S$5. If the part-timer works 9 hours one day, the extra pay is (4 hours x S$5) + (1 hour x S$5 x 1.5) = S$27.50. If a part-timer’s hours are increasing permanently, see our note on updating a part-time employee’s agreement and leave records.

Is overtime pay subject to CPF?

Yes. Overtime is wages for CPF purposes, and whether it is Ordinary Wages (OW) or Additional Wages (AW) depends on when it is payable.

The CPF Board explains that wages are OW for a month only if they are given for employment in that month and are payable by the 14th of the following month. Anything else is AW. Overtime must first be apportioned to the calendar month in which it was worked. So April overtime payable on 10 May is OW for April, while April overtime payable on 30 May becomes AW for May. Where an overtime cut-off runs across two months, the earlier month’s portion may become AW. See the CPF Board’s overtime OW and AW examples. For rates and ceilings more generally, see our payroll and CPF guide for employers.

What records and payslips must an employer keep for overtime?

Employers must issue itemised payslips and keep employment records for all employees covered by the Employment Act, and both must capture overtime.

MOM’s employment records page lists every required item. Keep the approved timesheets behind each overtime figure; you will need them if a claim is made.

What happens if an employer underpays or pays overtime late?

Non-payment of salary is an offence, and employees can file a salary claim, including unpaid overtime, through the Tripartite Alliance for Dispute Management (TADM).

Claims go to mediation at TADM first. If mediation fails, the claim can be referred to the Employment Claims Tribunals (ECT), which hear claims of up to S$20,000, or up to S$30,000 where the claim has gone through the Tripartite Mediation Framework or union-assisted mediation. An employee still in employment must file within 1 year after the dispute arose; one who has left must file within 6 months of the last day of work. Because unpaid overtime builds up month by month, a small formula error can turn into a large back-pay bill. Our article on the Employment Claims Tribunals and TADM explains how employers handle these claims. If a dispute escalates and you need advice on your position, speak to a lawyer.

Many smaller companies avoid these errors by outsourcing payroll. Raffles Corporate Services’ published packages list variable monthly salary payroll, which suits staff with overtime, from S$200 for the first 5 active employees. See our guide to payroll outsourcing in Singapore and our free tools. For hiring foreign workers, whose hours and overtime also fall under these rules, our associated MOM-licensed agency at singaporeemploymentagency.com handles work pass applications.

Frequently asked questions

Is overtime paid for work done without approval?

MOM states that overtime pay applies only where the employer requires the employee to work beyond normal hours. Employers should set out a clear approval process so there is no doubt about what was required.

When must overtime be paid?

Within 14 days after the last day of the salary period. Basic salary must be paid within 7 days after the end of the salary period.

Can an employee agree to work more than 72 overtime hours a month?

Not on agreement alone. The employer must apply to MOM for an overtime exemption, and some work activities will not be granted one.

Do foreign employees get overtime pay?

Yes, if they are covered by Part 4. The Employment Act covers local and foreign employees, so a Work Permit holder doing manual work on S$4,500 or less basic salary is entitled to overtime in the same way as a local workman.

Last reviewed: 22 October 2026. The Editorial Team, Raffles Corporate Services.