Retrenchment Benefit Calculator: Severance Pay in Singapore

Under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (MOM, NTUC and SNEF), employees with at least 2 years of service are eligible for a retrenchment benefit. The prevailing norm is 2 weeks' to 1 month's salary per year of service, depending on the company's financial position and industry. In unionised companies where the collective agreement sets the benefit, the norm is 1 month's salary per year. This calculator takes 2 weeks as 12 ÷ 52 × 2 of a monthly salary.

Retrenchment benefit is not a statutory Employment Act entitlement: the amount comes from your contract or collective agreement, or is negotiated. If the retrenchment comes soon after a pay cut, the pre-cut salary should be used. Employees with under 2 years of service may get an ex-gratia payment at the employer's discretion. No CPF is payable on the benefit, and IRAS does not tax genuine compensation for loss of employment, though salary in lieu of notice is taxable.

Your last day's pay must also include salary owed, unused annual leave and notice pay if notice is not served. If the contract has no notice clause, the Employment Act default is 1 day under 26 weeks of service, 1 week up to 2 years, 2 weeks up to 5 years and 4 weeks from 5 years. SkillsFuture Jobseeker Support pays citizens and PRs aged 21 and above who earned an average of S$5,000 a month or less and live in a home with an annual value of S$31,000 or less up to S$6,000 over 6 months (S$1,500, S$1,250, S$1,000, then S$750 for 3 months), each payout capped at the last-drawn salary.