| Key numbersLabor Market 4Q 2024[1]On 19 March 2025, the Ministry of Manpower released the Labour Market Report for Q4 2024, which reflects the continued resilience and positive trajectory of Singapore’s labour market. Total employment expanded by 44,500, including 8,800 additional resident positions, thereby reversing the prior year’s contraction. Unemployment remained low and stable (1.9% overall; 2.8% among residents), while retrenchments declined to 13,020 for the full year. Notably, job vacancies rose to 77,500 in December, resulting in a ratio of 1.64 vacancies per unemployed person, indicative of a sustained tightness in labour market conditions. Resident employment gains were concentrated in high-skilled sectors such as financial services, healthcare, and information and communications. Meanwhile, the growth in non-resident employment moderated. Business sentiment remained positive, with a growing proportion of firms indicating intentions to increase headcount and wages in the first quarter of 2025. |
I. Work Injury Compensation Act 2019: Workplace-related injuries maximum compensation will rise significantly in November 2025[2]
Work Injury Compensation Act 2019 (“WICA”) is an Act “to provide for the payment of compensation to employees for injury suffered arising out of and in the course of their employment and to platform workers for injury suffered arising out of and in the course of their provision of platform services for platform operators, and to regulate providers of insurance for liability”[3] under the WICA.
Important amendments to the WICA were announced by the Ministry of Manpower (“MOM”) in February 2024, set to come into effect in November 2025. These changes aim to adjust compensation limits in line with wage growth and rising healthcare costs, while maintaining a low-cost, efficient process for employees to seek compensation for work-related injuries and diseases:
- The maximum compensation for a workplace death will increase from S$225,000 to S$269,000.
- Compensation for workers suffering total permanent incapacity will rise from S$289,000 to S$346,000.
The WICA continues to provide compensation regardless of fault, with caps in place to limit large payouts for employers.
In addition to increasing the compensation thresholds, the MOM implemented in March 2024 new Workplace Safety Measures including compulsory safety training for CEOs (the Top Executive WSH Programme).
| Employers are encouraged to review their WICA insurance coverage in advance of the November 2025 amendments, to ensure alignment with the revised compensation limits and related regulatory requirements, allowing adequate time for any necessary adjustments. |
II. Measures from the National Wage Council Guidelines effective as of 1 January 2025[4]
The National Wage Council of Singapore (the “NWC”) convened between August and October 2024 to formulate wage guidelines for the period from 1 December 2024 to 30 November 2025.
The provisions of paragraph 10 of the 2024/2025 guidelines came into effect on 1 January 2025, as follows:
- It was provided that the monthly wage ceiling for contributions to the CPF would increase from SGD 6,800 to SGD 8,000 by 2026, in order to keep pace with wage growth. This increase is being implemented in phases to allow employers and employees time to adjust. The most recent increase, raising the ceiling to SGD 7,400, came into effect on 1 January 2025.
- As of 1 January 2025, employer CPF contributions for employees aged between 55 and 65 have increased by 0.5 percentage points. A transitional support measure, known as the CPF Transition Offset, was introduced to partially offset the rise in CPF contributions borne by employers for the year 2025.
- Employers are expected to take these CPF contribution increases into account when reviewing salary adjustments.
For further details, please refer to the following link to the guidelines: https://www.mom.gov.sg/-/media/mom/documents/press-releases/2023/annex-a—nwc-2023-2024-guidelines.pdf
III. Adoption of a New Bill on Workplace Fairness in Singapore[5]
Overview. In January 2025, Singapore passed a key piece of legislation aimed at strengthening protections for employees against workplace discrimination. The Workplace Fairness Bill (the “Bill”) is part of a two-phase legislative framework, with implementation expected in either 2026 or 2027.
Main objective. The Bill explicitly prohibits discriminatory practices in employment-related decisions, including:
- Recruitment,
- Dismissals,
- Performance assessments.
Protected characteristics include age, gender, pregnancy, family responsibilities, race, religion, nationality, and disabilities and mental health conditions.
Employer obligations. Employers will be required to establish internal mechanisms to:
- Handle employee complaints,
- Ensure the confidentiality of any procedures undertaken.
Application to small businesses. A five-year transitional period is planned for small businesses with fewer than 25 employees, to allow them time to comply with the new requirements.
Support measures. Several local organisations and HR professionals have already introduced support initiatives, including:
- Targeted training programmes,
- Practical tools to prevent discrimination,
- Efforts to enhance employee well-being in the workplace.
Complementarity with existing guidelines. The new legislation is designed to complement, rather than replace, the current Tripartite Guidelines on Fair Employment Practices.
| This reform is expected to transform Singapore’s workplace culture by promoting fair employment practices and strengthening employee’s rights, while fostering an inclusive and respectful working environment. |
IV. New Guidelines on Flexible Work Arrangement Requests[6]
As highlighted in our Q4 2024 newsletter, updates on Flexible Work Arrangements (“FWAs”) were anticipated. On 1 December 2024, the new guidelines came into effect, establishing the procedure for employees to formally submit requests for FWAs and requiring employers to review and respond to these requests appropriately.
Employers have to implement an internal process for handling such requests. They provide a framework for both parties to jointly assess three types of FWAs:
- Flexi-time: adjustable working hours,
- Flexi-load: a modifiable workload,
- Flexi-place: a flexible work location, such as telecommuting or remote work.
For more information, please refer to the guidelines available at the following link: https://www.mom.gov.sg/-/media/mom/documents/press-releases/2024/tripartite-guidelines-on-flexible-work-arrangement-requests.pdf
V. Update on Paid Shared Parental Leave Entitlements under the Child Development Co-Savings (Amendment) Bill – Effective 1 April 2025[7]
As noted in our Q4 2024 newsletter, from 1 April 2025, working parents are entitled to an additional six weeks of paid shared parental leave—on top of maternity leave—under the Child Development Co-Savings (Amendment) Bill (“CDCSAB”). This entitlement will increase to ten weeks from 1 April 2026.
As of 1 April 2025, the paternal leave entitlement for eligible fathers will also double from two to four weeks. The additional 2 weeks of government paid paternity leave (which employers currently have the option to offer on a voluntary basis) will be made mandatory. As such, eligible fathers will be entitled to 4 weeks of government paid paternity leave.
The CDCSAB introduced a new shared parental leave scheme that replaces the previous framework and provides additional paid leave on top of existing maternity and paternity entitlements. By default, these additional weeks are equally allocated between both working parents, though the allocation can be adjusted based on their respective caregiving needs.
To be eligible for shared parental leave, the following conditions must be met:
- The child must be a Singapore citizen; and
- The employee must provide their employer with at least four weeks’ notice before taking maternity, paternity, or shared parental leave, and should aim to inform their employer as early as possible upon confirmation of pregnancy.
VI. Coming into effect of the Platform Workers Act[8]
On 17 December 2024, the MOM announced the entry into force of the Platform Workers Act 2024 (“PWA”) as of 1 January 2025, following its adoption in September 2024.
The implementation of the PWA represents a major milestone in regulating digital platform work in Singapore and is expected to enhance the protection of platform workers, such as Grab or Gojek workers, in several areas, notably with regard to housing and retirement adequacy through the Central Provident Fund (“CPF”), by providing financial compensation in the event of a work injury, as well as by establishing a legal framework for representation. The new administrative and financial obligations, include mandatory registration, insurance compliance, payroll system adjustments to incorporate the new CPF contributions.
Additional information can be found via the link below: https://sso.agc.gov.sg/Act/PWA2024
*****
[1] Ministry of Manpower, “Labour Market in 4Q 2024”, 19 March 2025.
[2] Ministry of Manpower, “Higher Compensation Limits Under the Work Injury Compensation Act”, 8 February 2024.
[3] Singapore’s Work Injury Compensation Act 2019.
[4] National Wage Council of Singapore, Guidelines 2024-2025.
[5] Singapore’s Workplace Fairness Act 2024, Bill No. 50/2024, November 2024; Ministry of Manpower, “Passing Of Workplace Fairness Bill Marks Next Step In Building Fair and Harmonious Workplaces”, 8 January 2025.
[6] Ministry of Manpower, “Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR)”, https://www.mom.gov.sg/employment-practices/good-work-practices/flexible-work-arrangements.
[7] Ministry of Social and Family Development, “Amendments to Child Development Co-Savings Act: Enhanced Paternity Leave and New Shared Parental Leave Scheme from 1 April 2025 to Strengthen Support for Working Parents”, 13 November 2024; Government-Paid Leave Portal, Shared Parental Leave (SPL), https://www.profamilyleave.msf.gov.sg/schemes/shared-parental-leave.
[8] Ministry of Manpower, “Commencement of Platform Workers Act from 1 January 2025”, 17 December 2024.
Astrid Cippe | Charline Levasseur