HRSINGAPORE Community Discussions
Dear HR Professionals,
I would like to know the practice of overtime calculation in general. I was puzzled that company is able to set 1.0 rate on certain staff category where it supposes to be 1.5 rate and 1.5 rate for 2.0 rate.
I reckon that this can apply if the overtime pay is being stated in the Letter of Appointment.
Hope to see your sharing.
Overtime pay is calculated for 1.0 as 1.5 rate:
- 1.0 as 1.5 rate (technical and non technical positions) for day shift
- 1.5 rate (for support positions and 2.0 rate for technical positions) for night shift
Overtime pay is a legal obligations of employers. This means it must be paid to employees who are all workman (basic salary up to S$4,500) as well as non-workman (basic salary is S$2,500 and below). For these two groups of employees, the minimum computation of overtime pay must be at 1.5 times of their hourly rate. It can be higher but not less than 1.5 times.
Any other employees outside these two categories are not entitled to overtime pay under the EA. This means no OT payment for other groups of employees. However, nothing to stop employers who wish to pay OT. Hence, employer can decide on their own (as in company's policy, employee handbook or employment contract) whether to pay OT, and if yes, at what rate. The 1.5 times of the hourly rate does not apply in such cases. Some company uses a quantum dollars instead such as S$10/hour or S$15/hour etc.
What’s the pay of the worker matters. If he is cover under the Act matters. There’ll be new changes too.
Vocation blue or white collar matters slightly. OT initiated by which party first I heard also contribute a part. We pay Basic pay x 12/2288 x 1.5 x OT hours.Holiday pay for monthly-wage workers is the most headache as they normally do not appreciate what MOM says about the ‘built-in’ one time pay which they are so used to getting it already.
You could always find put more and/or clarify by surfing MOM Overtime calculation.