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Mandatory notifications on cost-saving measures

From 12 March 2020, employers must notify MOM if they implement any cost-saving measures that affect employees’ salaries.

At a glance

Who must notify Employers.
When to notify Within 1 week after implementing cost-saving measures.
How to notify Notify online.

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.

Find out more about cost-savings measures.

Notify MOM

As an employer, you must notify MOM if you:

  • Implement any cost-saving measures affecting your employees’ salaries (excluding adjustments to discretionary payments such as bonuses and increments).
  • Are registered in Singapore.
  • Have at least 10 employees.

Get approval from Controller of Work Passes

If you are adjusting the salaries of foreign employees, after you have notified MOM on the cost-saving measures, you need to separately seek approval from the Controller of Work Passes:

  1. Download and fill up the list of affected foreign employees.
  2. Apply for salary reduction and attach the list of affected foreign employees.

When to notify

You must notify within 1 week (7 calendar days) after your cost-saving measures are implemented.

Documents required

You need:

  • 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.