# Retrenchment Benefit Calculator: Severance Pay in Singapore

Estimate your retrenchment benefit in Singapore from salary and years of service, using the tripartite norm, plus notice pay, leave and Jobseeker Support.

Interactive tool: https://lookup.sg/tools/retrenchment-benefit-calculator

## How this works
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.

## FAQs
### How much retrenchment benefit will I get in Singapore?
Usually 2 weeks' to 1 month's salary for each year of service, if you have served at least 2 years. On a S$4,000 monthly salary with 6 years of service, that is about S$11,077 to S$24,000.

### Is retrenchment benefit compulsory?
No. The Employment Act does not require it; the Tripartite Advisory sets the norm, and the amount comes from your contract, collective agreement or negotiation. MOM reports that about 9 in 10 eligible employees received a retrenchment benefit from 2020 to 2025.

### Do I get retrenchment benefit with less than 2 years of service?
Not under the Tripartite Advisory, which starts at 2 years. Your employer may pay an ex-gratia sum out of goodwill, and you are still owed your notice period or salary in lieu, plus unused leave.

### Is retrenchment benefit taxable?
Compensation for loss of employment is not taxable and has no CPF. Salary in lieu of notice, gratuities and ex-gratia payments for past service are taxable.

### How much is SkillsFuture Jobseeker Support?
Up to S$6,000 over 6 months: S$1,500 in month 1, S$1,250 in month 2, S$1,000 in month 3 and S$750 in months 4 to 6, each capped at your last monthly salary. You must be a citizen or PR aged 21 and above, have earned S$5,000 a month or less, and join job search activities.

## Sources
- [MOM: Responsible retrenchment](https://www.mom.gov.sg/employment-practices/retrenchment/responsible-retrenchment)
- [Tripartite Alliance: Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment](https://www.tal.sg/tafep/resources/advisories/2020/tripartite-advisory-on-managing-excess-manpower-and-responsible-retrenchment)
- [MOM: Written answer on compliance with tripartite guidelines for retrenchment benefits (4 Feb 2026)](https://www.mom.gov.sg/newsroom/parliament-questions-and-replies/2026/0204-written-answer-to-pq-on-compliance-with-tripartite-guidelines-for-retrenchment-benefits)
- [IRAS: Retrenchment benefits](https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/employment-income/retrenchment-benefits)
- [SSG/WSG: SkillsFuture Jobseeker Support](https://www.swda.gov.sg/home/individuals/jobseeker-support)
- [MOM: Factsheet on SkillsFuture Jobseeker Support scheme](https://www.mom.gov.sg/-/media/mom/documents/press-releases/2024/annex-a---factsheet-on-skillsfuture-jobseeker-support-scheme.pdf)

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Source: Lookup (https://lookup.sg) · Data as of October 2026 · Listings compiled from Singapore government open data (data.gov.sg), OneMap and Overture Maps places. Free listings never show contact details; contact details appear only on Lookup Verified listings.