{"id":590,"date":"2024-07-18T05:57:00","date_gmt":"2024-07-18T05:57:00","guid":{"rendered":"https:\/\/www.info-tech.com.sg\/blog\/?p=590"},"modified":"2026-02-24T06:54:58","modified_gmt":"2026-02-24T06:54:58","slug":"overtime-pay-calculation-in-singapore","status":"publish","type":"post","link":"https:\/\/www.info-tech.com.sg\/blog\/overtime-pay-calculation-in-singapore\/","title":{"rendered":"Navigating Overtime Pay Calculation in Singapore\u00a0"},"content":{"rendered":"\n<p>Business owners, HR managers, and payroll administrators in Singapore face a tricky task when it comes to overtime calculations. It&#8217;s not just about fair pay \u2014 it&#8217;s about following rules, building trust, and keeping employees motivated. Mistakes can lead to penalties unhappy staff, and ongoing arguments. Getting it right can boost employee loyalty and ensure you stick to the law.&nbsp;<\/p>\n\n\n\n<p>This guide breaks down how to figure out overtime pay in Singapore under the Employment Act. You&#8217;ll find real-world examples common pitfalls to avoid, and ways to make the process easier using payroll software.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Can Get Overtime Pay in Singapore?&nbsp;<\/strong><\/h2>\n\n\n\n<p>The Employment Act doesn&#8217;t cover every employee for overtime. The <a href=\"https:\/\/www.mom.gov.sg\/employment-practices\/hours-of-work-overtime-and-rest-days\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Ministry of Manpower (MOM)<\/strong><\/a> in Singapore says:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employees making up to SGD 2,600 a month (or SGD 4,500 a month for non-workmen) have coverage.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Manual employees (workmen) earning up to SGD 4,500 a month also have eligibility.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Managers and executives don&#8217;t have overtime protection unless their contracts say otherwise.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#abeafd\"><strong>In Singapore, employees who make up to SGD 2,600 monthly (or SGD 4,500 monthly for laborers) have the right to get extra pay for overtime work under the Employment Act from MOM.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Figure Out Overtime Pay in Singapore&nbsp;<\/strong><\/h3>\n\n\n\n<p>MOM&#8217;s way to calculate overtime is simple, but putting it into practice often isn&#8217;t easy.&nbsp;<\/p>\n\n\n\n<p><strong>Overtime Pay Formula (MOM):&nbsp;<\/strong><\/p>\n\n\n\n<p>Hourly Basic Rate \u00d7 1.5 \u00d7 Overtime Hours Worked&nbsp;<\/p>\n\n\n\n<p><strong>Where:&nbsp;<\/strong><\/p>\n\n\n\n<p>Hourly Basic Rate = (Monthly Basic Salary \u00f7 26 days \u00f7 Daily Working Hours)&nbsp;<\/p>\n\n\n\n<p>1.5 = Overtime multiplier under MOM rules&nbsp;<\/p>\n\n\n\n<p><strong>Example Scenario:<\/strong>&nbsp;<\/p>\n\n\n\n<p>For instance, an admin officer with a monthly salary of SGD 2,400 putting in 44 hours\/week. For one week, she worked 6 hours more than usual.&nbsp;<\/p>\n\n\n\n<p>Hourly Basic Rate = SGD 2,400 \u00f7 26 \u00f7 8 = SGD 11.54&nbsp;<\/p>\n\n\n\n<p>The Overtime Rate = 11.54 \u00d7 1.5 = SGD 17.31&nbsp;<\/p>\n\n\n\n<p>Overtime Pay = 17.31 \u00d7 6 = SGD 103.86&nbsp;<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#abeafd\"><strong>In Singapore, companies pay overtime at 1.5 times the hourly basic rate for each extra hour worked.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Overtime on Rest Days and Public Holidays\u202f&nbsp;<\/strong><\/p>\n\n\n\n<p>Different rates will apply if an employee works on a rest day or public holiday.\u202f&nbsp;<\/p>\n\n\n\n<p><strong>Rest Day:<\/strong>\u202f&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"245\" src=\"https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-1024x245.png\" alt=\"\" class=\"wp-image-1431\" style=\"width:837px;height:auto\" srcset=\"https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-1024x245.png 1024w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-300x72.png 300w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-768x184.png 768w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-1536x368.png 1536w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-1-2048x491.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Source: <a href=\"https:\/\/www.mom.gov.sg\/employment-practices\/hours-of-work-overtime-and-rest-days\" target=\"_blank\" rel=\"noreferrer noopener\">Ministry of Manpower<\/a>&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Public Holiday:<\/strong>&nbsp;<\/p>\n\n\n\n<p>Payment for work on a public holiday is calculated as follows:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"606\" src=\"https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-1024x606.png\" alt=\"\" class=\"wp-image-1432\" style=\"width:799px;height:auto\" srcset=\"https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-1024x606.png 1024w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-300x178.png 300w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-768x455.png 768w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-1536x909.png 1536w, https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2024\/07\/Overtime-on-Rest-Days-and-Public-Holidays-2-2048x1212.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Source: <a href=\"https:\/\/www.mom.gov.sg\/employment-practices\/public-holidays-entitlement-and-pay\" target=\"_blank\" rel=\"noreferrer noopener\">Ministry of Manpower<\/a>&nbsp;<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Remember:\u202f&nbsp;<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>For employees covered under Part IV<\/strong>: Employers cannot substitute overtime pay with time off; they must compensate it at a rate of at least 1.5 times the hourly basic rate of pay.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>For employees NOT covered under Part IV:<\/strong> Overtime entitlement depends on the terms stipulated in the employment contract.\u202f&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Timing of overtime pay<\/strong>: Employers must disburse overtime compensation within 14 days following the end of the salary period during which the employees worked overtime.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Frequent Overtime Pay Errors Made by Employers&nbsp;<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Wrongly labeling employees<\/strong> \u2013 thinking managers don&#8217;t get overtime when their contracts say they do.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Missing rest days\/public holidays<\/strong> \u2013 pay rates might change.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Errors in manual math<\/strong> \u2013 mistakes in Excel sheets cause arguments.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Breaking MOM rules<\/strong> \u2013 risking penalties and affecting the company&#8217;s image.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Let&#8217;s take an example. Many small businesses find it hard to keep track of time . When they don&#8217;t have good systems to manage attendance, overtime records often go missing or spark debates \u2014 making both HR and employees unhappy.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Dangers of Doing Overtime Calculation Manually&nbsp;<\/strong><\/h4>\n\n\n\n<p>A study reveals that <strong>55% of Asian companies still use spreadsheets for payroll<\/strong>. Though familiar, spreadsheets can&#8217;t handle complex compliance rules well.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mistakes can result in <strong>overpaying<\/strong> (affecting profits) or <strong>underpaying<\/strong> (inviting legal trouble).&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payroll teams waste time double-checking figures instead of planning ahead.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employees lose faith when their pay doesn&#8217;t match their actual work hours.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>What&#8217;s worse, companies that break MOM&#8217;s regulations face fines and penalties \u2014 as shown in cases highlighted by <a href=\"https:\/\/singaporelegaladvice.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Singapore Legal Advice<\/strong><\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Using HRMS &amp; Payroll Software to Automate Overtime&nbsp;<\/strong><\/h3>\n\n\n\n<p>This is where technology comes into play. Up-to-date HRMS and payroll systems like Info-Tech <strong><a href=\"https:\/\/www.info-tech.com.sg\/payroll-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Payroll Software<\/a><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Record work hours through biometric or digital attendance.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use MOM-compliant overtime calculations.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create clear payslips employees can rely on.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Connect with accounting for smooth financial reporting.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>HR leaders can turn their attention to talent management and employee engagement instead of putting out payroll fires.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Wrapping Up: Changing Compliance into Confidence&nbsp;<\/strong><\/h4>\n\n\n\n<p>Overtime pay in Singapore isn&#8217;t just something the law requires \u2014 it shows how much you value your team. When you handle it right, it builds loyalty, cuts down on disagreements, and boosts your workplace culture.&nbsp;<\/p>\n\n\n\n<p>With Info-Tech <a href=\"https:\/\/www.info-tech.com.sg\/payroll-software\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Payroll Software<\/strong><\/a>, you can stop worrying about mistakes made by hand and put your energy into growing your business with peace of mind.&nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-background has-link-color wp-elements-5ecc099ac16c4471af9c4f572394a75c\" style=\"background-color:#f1be06\"><strong>Want To Make Payroll Simpler? <a href=\"https:\/\/www.info-tech.com.sg\/contact-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ask for a Demo<\/a> Now!<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions:<\/strong><\/h2>\n\n\n\n<div class=\"container\">\n       \n        <div class=\"mi-faq\">\n          <div class=\"accordion\" id=\"accordionExample\">\n            <div class=\"card\">\n              <div class=\"card-head\" id=\"headingOne\">\n                <div class=\"acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapseOne\" aria-expanded=\"true\" aria-controls=\"collapseOne\">\n                  <h4 class=\"Positionheader\">Who can get overtime pay in Singapore?<\/h4>\n                <\/div>\n              <\/div>\n              <div id=\"collapseOne\" class=\"collapse show\" aria-labelledby=\"headingOne\" data-parent=\"#accordionExample\">\n                <div class=\"card-body\">\n                  <p>The Employment Act from MOM covers employees making up to SGD 2,600 a month. For workmen, this limit goes up to SGD 4,500 a month.<\/p>\n                <\/div>\n              <\/div>\n            <\/div>\n            <div class=\"card\">\n              <div class=\"card-head\" id=\"headingtwo\">\n                <div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsetwo\" aria-expanded=\"false\" aria-controls=\"collapsetwo\">\n                  <h4 class=\"Positionheader\">How much is overtime pay in Singapore?<\/h4>\n                <\/div>\n              <\/div>\n              <div id=\"collapsetwo\" class=\"collapse\" aria-labelledby=\"headingtwo\" data-parent=\"#accordionExample\">\n                <div class=\"card-body\">\n                  <p>Employees get 1.5 times their normal hourly rate for each extra hour they work.<\/p>\n                <\/div>\n              <\/div>\n            <\/div>\n            <div class=\"card\">\n              <div class=\"card-head\" id=\"headingthree\">\n                <div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsethree\" aria-expanded=\"false\" aria-controls=\"collapsethree\">\n                  <h4 class=\"Positionheader\">How do you figure out the hourly basic rate?<\/h4>\n                <\/div>\n              <\/div>\n              <div id=\"collapsethree\" class=\"collapse\" aria-labelledby=\"headingthree\" data-parent=\"#accordionExample\">\n                <div class=\"card-body\">\n                  <p>Take the monthly basic pay, divide it by 26 days then divide that by the number of hours worked in a day.<\/p>\n                <\/div>\n              <\/div>\n            <\/div>\n            <div class=\"card\">\n              <div class=\"card-head\" id=\"headingfour\">\n                <div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsefour\" aria-expanded=\"false\" aria-controls=\"collapsefour\">\n                  <h4 class=\"Positionheader\">Are managers and executives able to claim overtime pay?<\/h4>\n                <\/div>\n              <\/div>\n              <div id=\"collapsefour\" class=\"collapse\" aria-labelledby=\"headingfour\" data-parent=\"#accordionExample\">\n                <div class=\"card-body\">\n                  <p>No. But if their job contract says they can get overtime then they might be able to claim it.<\/p>\n                <\/div>\n              <\/div>\n            <\/div>\n<div class=\"card\">\n              <div class=\"card-head\" id=\"headingfive\">\n                <div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsefive\" aria-expanded=\"false\" aria-controls=\"collapsefive\">\n                  <h4 class=\"Positionheader\">How can companies make overtime pay calculations easier?<\/h4>\n                <\/div>\n              <\/div>\n              <div id=\"collapsefive\" class=\"collapse\" aria-labelledby=\"headingfive\" data-parent=\"#accordionExample\">\n                <div class=\"card-body\">\n                  <p>By using HRMS and payroll software that has an impact on automating MOM-compliant overtime rules ensuring correctness and reducing time spent.<\/p>\n                <\/div>\n              <\/div>\n            <\/div>\n          <\/div>\n        <\/div>\n      <\/div>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"Who can get overtime pay in Singapore?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"The Employment Act from MOM covers employees making up to SGD 2,600 a month. 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