Key takeaways
- If the contract doesn't set a notice period, the Employment Act sets one: from 1 day to 4 weeks depending on service.
- Either side can pay salary in lieu of notice. No CPF is payable on salary in lieu.
- Final salary is due on the last day in most cases. If an employee resigns without notice, it's due within 7 days.
- Employers with 10 or more staff must notify MOM within 5 working days of telling employees they're retrenched.
Notice periods
The contract sets the notice period. If it doesn't, the Employment Act applies:
| Length of service | Notice period |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Source: Ministry of Manpower (MOM)
Salary in lieu of notice
- Either the employer or the employee can end employment immediately by paying salary in lieu of notice for the notice period.
- Both can agree to waive notice. Put the agreement in writing.
- CPF: no CPF is due on salary in lieu of notice, but CPF is due on salary earned while working the notice period.
When to pay the final salary
| Situation | Final salary due |
|---|---|
| Employee resigns and serves notice | On the last day of employment |
| Employee resigns without serving notice | Within 7 days of the last day |
| Employer terminates, or dismisses for misconduct | On the last day, or within 3 working days if that isn't possible |
Source: Ministry of Manpower (MOM)
Issue an itemised payslip with the final salary.
Unused annual leave
- Employees covered by Part 4 of the Employment Act can carry forward unused leave.
- Statutory leave can be forfeited if the employee is dismissed for misconduct.
- An employee who is absent without leave for more than 2 consecutive working days is treated as having broken the contract. They owe salary in lieu of notice, and you don't need to pay out their leave.
- For employees not covered by Part 4, the contract decides whether leave is paid out when they leave.
Foreign employees: IR21
For a non-citizen employee, including a Singapore PR, who is leaving Singapore employment, file Form IR21 with IRAS at least one month before their last day. From the time you know they're leaving, withhold all money due to them until IRAS gives tax clearance. MOM allows employers to hold these payments for up to 30 days for tax clearance after notifying IRAS.
Retrenchment
- Benefits: the law doesn't set an amount. The norm for employees with at least 2 years' service is 2 weeks' to 1 month's salary per year of service. Employees with less service may get an ex-gratia payment. No CPF is due on retrenchment benefits.
- Notifying MOM: employers with at least 10 employees must submit a Mandatory Retrenchment Notification within 5 working days of telling employees they're being retrenched.
Wrongful dismissal claims
An employee who believes they were wrongfully dismissed, including being forced to resign, can file a claim with the Tripartite Alliance for Dispute Management (TADM) within one month of their last day. Managers and executives dismissed with notice need at least 6 months' service to claim. Unresolved claims go to the Employment Claims Tribunals.
HRKaki Payroll
HRKaki works out final pay, leave balances and CPF for leavers, and prepares IR21 for departing foreign staff.
Frequently asked questions
What is the default notice period in Singapore?
If the contract is silent: 1 day for less than 26 weeks' service, 1 week for 26 weeks to under 2 years, 2 weeks for 2 to under 5 years, and 4 weeks for 5 years or more.
Is CPF payable on salary in lieu of notice?
No. CPF is not payable on salary in lieu of notice, but it is payable on salary earned while serving notice.
When must the final salary be paid?
On the last day of employment when an employee resigns with notice or is terminated. If an employee resigns without notice, within 7 days of the last day.
Is retrenchment benefit compulsory?
There's no fixed legal amount. The norm for employees with at least 2 years' service is 2 weeks' to 1 month's salary per year of service.
Sources
Information sourced from
Figures and rules in this article come from the official sources listed below, checked on 13 October 2026. Avelogic is not affiliated with these agencies. For the authoritative and latest position, refer to the agency directly.
- MOM: Termination with notice
- MOM: Paying salary
- MOM: Annual leave special situations
- MOM: Responsible retrenchment
- MOM: Mandatory Retrenchment Notifications
- MOM: Wrongful dismissal
- IRAS: Tax clearance for foreign and SPR employees (IR21)
This guide is general information based on official sources at the date shown, not legal or tax advice. Rules change, so check the CPF Board, IRAS, MOM or MOE for the latest position.