Find out how to calculate overtime pay, unpaid leave deductions, and leave encashments for employees in Singapore.
How to calculate overtime pay
Employees who work more than their normal working hours are entitled to overtime pay. Overtime rate in Singapore is 1.5 times normal hourly rate, therefore the calculation is carried out by multiplying the hourly rate of pay with 1.5, and then multiplying it again with the number of hours the employee worked overtime.
How to calculate unpaid leave deductions
Unpaid leave deductions depends on company regulations, but the process is customarily carried out by dividing the monthly gross pay with the number of working days in the month, then multiplying it with the total number of days the employee worked.
How to calculate leave encashment
Leave encashment calculation depends on company regulations, but is customarily calculated using the following formula:
{[(12 × Monthly Gross Rate of Pay) ÷ 52] × Average Number of Days an Employee is Required to Work in a Week}