Employment in Singapore
Employment in Singapore, including the development and planning of Singapore workforce to achieve "globally competitive workforce in a sustainable manner," is managed under the jurisdiction of Ministry of Manpower (Singapore). Other aspects of employment related functions as International Talent Promotion, Labour Relations, Management of Foreign Manpower, Labour Welfare and Services, are also covered by the ministry.
Singapore, with total land area of 719.1 square kilometers, has total population of 5.535 millions as of 2015. The population consists of 3.902 millions of residents (Singapore Citizens and Singapore Permanent Residents) and the remaining are non-residents. The average population per square kilometers is 7,697, one of the most dense population in the world, third after Monaco and Macau
Employment level in Singapore has been constantly increasing each year in the past decade, as reported in 2015. Latest employment level as of 3rd quarter of 2015 was reported at 3.640 millions, with gains led by the Services sector. In the first three quarters of 2015, total employment level grew by 16,200.
The long-term unemployment rate for Singapore residents was 0.8 per cent as of March in 2017, up from 0.7 per cent a year earlier.
In a 2018 survey conducted jointly by the Lee Kuan Yew School of Public Policy and Ong Teng Cheong Labour Leadership Institute, about 4.31% of the degree holders are drawing less than S$2,000 a month on a full-time job.
Basic terms and conditions of employers-employees relations in Singapore are covered by law in the Employment Act. All employees, both Singaporeans and foreigners, who enter into a contract of service with employers are covered by the act. There are some exceptions for managers and executives, who are not covered by Part IV, which provides for rest days, hours of work, annual leave and other conditions of service. For managers and executives, these conditions vary according to what is agreed in their individual employment contract. Workforce Singapore, a statute board under the ministry, also launched the Adapt and Grow Initiative in 2016. The program helps match individuals to career opportunities, with 17,000 matchings in the first half of 2018.
Amid the tight labour market and on-going initiatives that support work-life harmony, the proportion of establishments which provided at least one formal flexible work arrangement (FWA) improved steadily from 38% in 2011 to 47% in 2014.
On 22 January 2018, Managing Director of Monetary Authority of Singapore, Ravi Menon gave a speech at an IPS conference advocating Singapore to employ more foreign PMETs. "The trend of improving quality in our foreign workforce has already begun," he said. "The proportion of work permit holders has declined by about 10 percentage points over last 10 years, while the proportion of S-Pass and employment pass holders has increased by around 10 percentage points."
Mandatory savings scheme
Singaporean and Singapore PR (SPR) employees are required to set aside part of the earnings and contribute to Central Provident Fund (CPF). The employers are also required to contribute proportion of the earnings paid to their Singaporean and SPR employees to the fund. The contribution rates to CPF vary depending on income range and age bracket. Below is the contribution rate table, from 1-Jan-2016:.
|Employee’s Age (Years)||Employee’s total wages
for the calendar month
|Total CPF contributions (Employer’s & Employee’s share)||Employee’s share of CPF contributions|
|55 & below||≤ $50||Nil||Nil|
|> $50 to $500||17% (TW)||Nil|
|> $500 to < $750||17% (TW) + 0.6 (TW - $500)||0.6 (TW - $500)|
|≥ $750||[37% (OW)]* + 37% (AW)
* Max. of $2,220
|[20% (OW)]* + 20% (AW)
* Max. of $1,200
|Above 55 - 60||≤ $50||Nil||Nil|
|> $50 to $500||13% (TW)||Nil|
|> $500 to < $750||13% (TW) + 0.39 (TW - $500)||0.39 (TW - $500)|
|≥ $750||[26% (OW)]* + 26% (AW)
* Max. of $1,560
|[13% (OW)]* + 13% (AW)
* Max. of $780
|Above 60 - 65||≤ $50||Nil||Nil|
|> $50 to $500||9% (TW)||Nil|
|> $500 to < $750||9% (TW) + 0.225 (TW - $500)||0.225 (TW - $500)|
|≥ $750||[16.5% (OW)]* + 16.5% (AW)
*Max. of $990
|[7.5% (OW)]* + 7.5% (AW)
* Max. of $450
|Above 65||≤ $50||Nil||Nil|
|> $50 to $500||7.5% (TW)||Nil|
|> $500 to < $750||7.5% (TW) + 0.15 (TW - $500)||0.15 (TW - $500)|
|≥ $750||[12.5% (OW)]* + 12.5% (AW)
* Max. of $750
|[5% (OW)]* + 5% (AW)
* Max. of $300
OW: Ordinary Wages (capped at OW Ceiling of $6,000)
AW: Additional Wages
TW: Total Wages = OW + AW
- "Ministry of Manpower".
- "Statistics Singapore Latest Data".
- "World Bank: Population Density".
- "Ministry of Manpower (Singapore) Employment Summary".
- "Singstat Report: Labour Market 3rd Quarter 2015" (PDF).
- "Employment Act, who it covers".
- "Employment in Singapore". Careers Future. Workforce Singapore. Retrieved 9 November 2018.
- "Conditions of Employment, 2014" (PDF).
- Low, Vincent. "ST says more openings for PMETs but MAS MD wants more foreign PMETs to be hired". The Online Citizen. Retrieved 9 November 2018.
- "CPF Contribution Rate (From 1 January 2016)" (PDF).