Budget 2013: Employment Act review to guarantee overtime pay

Budget 2013: Employment Act review to guarantee overtime pay

SINGAPORE - More workers will enjoy guaranteed overtime pay and other protections related to working hours in the upcoming Employment Act review, said Acting Manpower Minister Tan Chuan-Jin on Thursday in Parliament.

Currently, a special section of the Act which deals with issues such as working hours and overtime covers manual workers earning up to $4,500 and other workers earning up to $2,000.

But when the Act is changed later this year - to take effect in 2014 - the salary ceiling for non-manual workers will be raised to $2,500. This means about 150,000 more workers will be covered by this section of the Act, and will be eligible for overtime pay if they do work overtime, said Mr Tan.

To help employers manage their costs, however, the amount of overtime payable will be capped at a salary level of $2,250. This means that workers earning from $2,250 to $2,500 will get the same overtime rate of $17.70 per hour.

Here is the full press release from MOM:

The Ministry of Manpower (MOM) has announced cha nges to the Employment Act (EA) which will ensure better protection for mo re workers - including Professionals, Managers and Executives (PMEs) - and raise employme nt standards, while allowing flexibility for employers.

These changes are the outcome of Phase 1 of the Employment Act Review consultation.

Feedback was obtai ned through several platforms, including an eight-week public consultation exercise. The proposals were also carefully evaluated by employers, unions and the Government.

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