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News Details

Change of salary ceiling for non-workmen from basic monthly salary of $1,600 to $2,000


by Philip - 23/12/2008

"The following changes will take effect from 1st Jan 2009"

1)        EA Clause 35.

The provisions of this Part shall apply —
(a) to workmen; and
(b) to employees who are in receipt of a salary not exceeding $1,600 a month (excluding overtime payments, bonus payments, annual wage supplements, productivity incentive payments and any allowance however described) or such other amount as may be prescribed by the Minister.

With effect from 1 January 2009, Part IV salary ceiling for non-workmen from a basic monthly salary of $1,600 to $2,000.

2)        Penalties for infringements of Employment Act
•        Increase maximum penalty fines for most offences under the Employment Act from $1,000 to $5,000.
•        Increase maximum penalty fines for most repeat offences under the Employment Act from $2,000 to $10,000.
•        Increase composition fine for offences from $200 to $1,000.

3)        Who are considered managers / executives? Are Professionals (e.g. lawyers, accountants, doctors,) considered managers and executives, and are they covered under the updated Employment Act?

Managers and executives are employees with executive or supervisory functions. These functions include the authority to influence or make decision on issues such as recruitment, discipline, termination of employment, assessment of performance and reward, or involvement in the formulation of strategies and policies of the enterprise, or the management and running of the business.

They also include professionals with tertiary education and specialised knowledge/skills and whose employment terms are comparable to those of managers and executives.

Professionals such as lawyers, accountants and doctors whose nature and terms of employment are comparable to executives would generally be deemed as such, and hence they would not be covered under the Act.

Contact Email: info@blueoceanjobs.com

More Details: http://www.mom.gov.sg/publish/momportal/en/general/changes_to_employment_act.html