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
|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.
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:
- Download and fill up the list of affected foreign employees.
- 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.
- 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.