Employers must notify MOM if they implement any cost-saving measures that affect employees’ salaries.
Notify MOM of cost-saving measures implemented
From 7 April 2020, MOM has simplified the mandatory notification process.
Employers who implement cost-saving measures must notify MOM if you:
- Are registered in Singapore.
- Have at least 10 employees.
- Implement cost-saving measures that result in:
- More than 25% reduction in gross monthly salary for local employees.
- More than 25% reduction in basic monthly salary for foreign employees.
By filing this notification, you don’t need to seek Controller’s approval for salary reduction of foreign employees during this period.
At a glance
|Who must notify
|When to notify
||Within 1 week after implementing cost-saving measures.
|How to notify
Before implementing cost-savings measures
Before implementation, you should consult and get the consent of unions and employees early, and communicate the impact of the measures clearly.
All employers should exercise care and fairness in implementing cost-saving measures. Where these cost-saving measures result in reductions of employees’ salaries, local employees should not be disadvantaged compared to foreign employees. MOM is prepared to be flexible where the salaries of foreign employees may temporarily fall below the respective salary criteria.
When to notify
You must notify within 1 week (7 calendar days) after your cost-saving measures are implemented.
- Company name and UEN
- Types of cost-saving measures implemented
- Start date of implementation
- Duration of cost-saving measures
- Profile of affected employees
- Adjustment to monthly salaries of affected employees
How to notify
You can notify online.
If your company made changes to the cost-saving measures implemented, you should submit a new notification. Changes may include types of measures, profile of employees impacted and extent of impact to employees.
If you stopped cost-saving measures
If your company has stopped all cost-saving measures earlier than what was notified to MOM, you should notify us about the early cessation.