Paying salaries late is not only a civil dispute in Singapore. Under the Employment Act, failing to pay salary on time is a criminal offence: the employer is liable to a fine of S$3,000 to S$15,000 or up to 6 months’ imprisonment or both, and a repeat offender to a fine of S$6,000 to S$30,000 or up to 12 months’ imprisonment or both. MOM has prosecuted the individuals it found responsible, including a registered director and a general manager who were each fined S$72,000. If your company is falling behind on payroll, the time to act is before staff complain to MOM: pay what you can, tell employees the truth, and take advice.
Act before it becomes a prosecution. MOM’s published case shows it gave the employer ample time to repay staff before the charges, and that the failure to make restitution counted against them. Paying arrears, communicating honestly and dealing with the company’s cash position properly is the last real chance to avoid being charged. Ignoring the problem, or continuing to trade while promising wages you cannot pay, makes it worse.
When is salary “late”?
For employees covered by the Employment Act, salary must be paid at least once a month and within 7 days after the end of the salary period, and overtime pay within 14 days after the end of the salary period, according to MOM’s guidance on paying salary. There are separate timelines for final salary on termination or resignation. Partial payments do not cure the breach for the unpaid balance.
What MOM’s case shows
In July 2025, MOM announced the conviction of a registered director and a general manager of three catering companies. Salary arrears built up from August 2022, more than 100 employees were affected, and the premises were closed by landlords for unpaid rent. MOM said the two did not fully inform employees of the companies’ situation, disregarded their concerns, and made no appreciable effort to repay despite being given ample time. Each pleaded guilty to 12 charges, with 12 more taken into consideration, and each was fined S$72,000, with 66 weeks’ imprisonment in default. MOM described them as the individuals responsible for the arrears.
The lessons for directors are that MOM looks at who was in control of the business, how employees were treated as the problem grew, and what was done to repay them.
Civil claims run alongside
Employees can also claim unpaid salary through the Tripartite Alliance for Dispute Management (TADM), which mediates first, and then the Employment Claims Tribunals. See our guide to what an employer faces at the Employment Claims Tribunals. Settling the civil claim does not by itself stop a prosecution, but repaying employees is the single most important step in either process.
What to do if payroll is in trouble
- Know the numbers. List each employee’s arrears, CPF due on wages and the next payroll date. CPF on wages is a separate obligation with its own enforcement: see unpaid CPF and directors’ liability.
- Prioritise wages. Use available funds for salary and CPF before discretionary payments, and do not pay directors or related parties ahead of staff.
- Tell employees the truth. Explain the position, what will be paid and when, in writing. Do not make promises the company cannot keep.
- Agree arrangements in writing where employees are willing, but remember that an agreement cannot remove the statutory obligation to pay salary.
- Address the company’s solvency. If the company cannot pay its debts as they fall due, the directors need advice on their duties and on options such as restructuring or winding up, before continuing to incur liabilities.
- Keep records. Payslips, payment records and communications with staff will matter if MOM investigates.
- If MOM contacts you, respond promptly and take legal advice before attending any interview.
How Raffles Corporate Services helps
We run payroll and CPF for clients, so we can quickly reconstruct arrears, prepare payment schedules, regularise CPF and produce the records MOM and TADM ask for. We also help directors understand the company’s cash position and filing obligations. Where there is a prosecution risk or a solvency question, we refer the company and its directors to a firm on our panel of Singapore law firms.
Frequently asked questions
Can a director be charged personally for the company’s late salaries?
MOM has prosecuted the individuals it considered responsible, including a registered director and a general manager. Whether a particular director is exposed depends on the facts and the law, so get legal advice early.
We paid everyone eventually. Can MOM still act?
The offence is failing to pay on time. Prompt repayment is relevant to how MOM views the case, as its published case shows, but it does not erase the breach. Ask a lawyer about your specific position.
Do these rules cover managers and executives?
The Employment Act’s salary payment provisions cover employees under the Act, which includes most managers and executives. Some parts of the Act, such as overtime, apply only to certain employees.
More guides on the employment hub.
Need help with unpaid salaries?
If your company, or you as a director or shareholder, is dealing with salary arrears or a MOM investigation, contact the Raffles Corporate Services team at [email protected] or on WhatsApp at +65 8501 7133 or +65 9018 0072. We will help you understand the documents and deadlines and sort out payroll and CPF. Where your matter needs a lawyer, we will refer you to a firm on our panel of Singapore law firms that regularly handles employment prosecutions and insolvency. Raffles Corporate Services is a corporate services provider, not a law firm, and this article is general information, not legal advice.
The Raffles Corporate Services Editorial Team