Leave Policy in Singapore

Types of Leave

Singapore’s leave entitlements are governed by the Employment Act and apply to employees working under a contract of service. Here are the key types of leave employers must be aware of:

• Annual Leave: Employees who have worked for at least three months are entitled to paid annual leave. The minimum is 7 days for the first year of service, increasing by one day for each additional year up to 14 days. Employers are obligated to allow employees to take leave within 12 months after the end of the entitlement year. Leave must be approved and taken at a mutually agreed time.
• Sick Leave: After three months of service and if certified unfit by a doctor, employees are entitled to up to 14 days of paid outpatient sick leave per year and up to 60 days of paid hospitalization leave. The 60 days include the 14 days of outpatient leave. Employers must bear the full cost of medical consultation and provide sick leave at the gross rate of pay.
• Maternity Leave: Female employees who have worked for at least three months and are Singapore citizens are entitled to 16 weeks of paid maternity leave. Non-citizens are entitled to 12 weeks. Employers must pay for the first 8 weeks; the government reimburses the rest if eligibility criteria are met.
• Paternity Leave: Fathers are entitled to 2 weeks of government-paid paternity leave if the child is a Singapore citizen and they meet employment eligibility criteria. Leave must be taken within 12 months of the child’s birth.
• Childcare Leave: Working parents of Singaporean children under 7 are entitled to 6 days of childcare leave annually. The first 3 days are employer-paid, while the remaining 3 are reimbursed by the government. For children aged 7 to 12, 2 days of extended childcare leave are provided annually.
• Other Leave: Employees are also entitled to unpaid infant care leave, adoption leave, and shared parental leave under qualifying conditions.

Unused Leave

Annual leave must be taken within 12 months after the end of the 12-month entitlement period. If not taken, it may lapse unless otherwise provided in the employment contract. Employers are encouraged to allow flexibility in carrying forward leave. Upon termination, any unused annual leave must be encashed based on the employee’s gross rate of pay. Sick leave and maternity leave do not carry forward or require encashment unless specified in contract.

Consequences of Mismanagement

Failure to comply with leave regulations can result in claims filed by employees through the Tripartite Alliance for Dispute Management (TADM). Breaching maternity or sick leave obligations can incur penalties under the Employment Act, with fines up to SGD 5,000 for the first offence and up to SGD 10,000 for subsequent offences. Reputational risks, employee dissatisfaction, and audit issues are also consequences of poor leave management.

Public Holidays

Singapore has 11 gazetted public holidays annually, including New Year’s Day, Chinese New Year, Hari Raya Puasa, Deepavali, and National Day. If a public holiday falls on a rest day or non-working day, employers must provide a day off or compensation in lieu. Employers must clearly communicate public holiday policies and substitution practices to ensure transparency and compliance.

How AYP Manages Leave Compliance

AYP helps businesses hiring in Singapore stay compliant with evolving leave laws by automating leave accruals and entitlements, calculating encashments accurately, and ensuring all documentation is maintained as required by the Ministry of Manpower (MOM). Our Employer of Record platform integrates statutory benefits management and tracks obligations across employee lifecycles to minimize compliance risks. We also support policy development tailored to your internal culture while maintaining local law compliance.

Contact Us

Ready to hire in Singapore with full peace of mind? Contact AYP to find out how our Employer of Record services help you manage leave, payroll, and compliance efficiently across Asia Pacific.