Last checked: October 2026. Rules from the Ministry of Manpower (MOM).
How is overtime pay calculated in Singapore?
For a monthly-rated employee covered by Part IV of the Employment Act, the hourly basic rate is monthly basic salary × 12 ÷ (52 × 44). Overtime is paid at no less than 1.5 times that rate, for up to 72 hours a month, within 14 days after the salary period ends.
Who is entitled to overtime pay
The overtime rules in Part IV of the Employment Act cover two groups: workmen (employees doing mainly manual work) earning a basic monthly salary of up to S$4,500, and non-workmen earning up to S$2,600. For these employees, overtime pay is a legal minimum. It can't be replaced by time off or a flat allowance that pays less.
Employees above those salary levels are outside the Part IV overtime rules. If their contract promises overtime pay, the contract terms apply. Most site workers, cleaners and technicians on Singapore payrolls fall within Part IV, which is why overtime is the biggest single source of pay disputes in construction payroll.
The overtime pay formula
For a monthly-rated employee, MOM sets the hourly basic rate as:
Hourly basic rate = monthly basic salary × 12 ÷ (52 × 44)
The 12 turns the monthly salary into a yearly one. The 52 × 44 is the number of normal working hours in a year at 44 hours a week. Overtime is then paid at at least 1.5 times the hourly basic rate for every hour worked beyond the normal hours of work.
Use basic salary only. Fixed allowances, shift allowances, overtime pay and bonuses are left out of the hourly basic rate, even when they are paid every month. For hourly-rated employees, the hourly rate in their contract is the starting point.
Worked example
A general worker on a monthly basic salary of S$1,800 works 40 hours of overtime in September 2026. The salary period is 1 to 30 September.
| Hourly basic rateS$1,800 × 12 ÷ (52 × 44) = S$9.4406 | S$9.44 |
| Overtime hourly rate1.5 × S$9.4406, rounded to the cent | S$14.16 |
| Overtime hours | 40 |
| Overtime pay | S$566.40 |
Basic salary is due by 7 October 2026 and the overtime pay by 14 October 2026. The 40 hours are within the 72-hour monthly limit.
Sample only. Names and figures are illustrative.
The 72-hour monthly overtime limit
An employee covered by Part IV can work no more than 72 hours of overtime in a month. Paying for the extra hours does not make them lawful. Firms that regularly need more must apply to MOM for an exemption before the hours are worked.
In practice, the limit is broken by accident: a worker moves between sites, two supervisors each record a few extra hours, and nobody adds them up until payday. Totalling overtime per worker every week, not only at month end, is the simplest fix.
When overtime must be paid
Basic salary must be paid within 7 days after the end of the salary period. Overtime pay must be paid within 14 days after the end of the salary period in which it was worked. Holding September's overtime until the October payroll is late payment. Overtime hours and overtime pay must also appear on the employee's itemised payslip.
Rest days and public holidays are calculated differently
Work on a rest day is not ordinary overtime. When the employer asks for it, the employee gets one day's pay for up to half their normal daily hours, two days' pay for more than half, and overtime for hours beyond their normal daily hours. When the employee asks to work, the day's pay amounts are halved. Work on a public holiday earns an extra day's pay on top of the normal salary. Enter only overtime on normal working days in the calculator above.
Common overtime mistakes
- Dividing the monthly salary by 26 days and 8 hours instead of using the MOM formula.
- Including allowances in the hourly rate one month and leaving them out the next.
- Paying a fixed monthly overtime allowance that comes to less than 1.5 times the hourly basic rate for the hours actually worked.
- Paying overtime a month late along with the next month's salary.
- Leaving overtime hours off the payslip.
We check every one of these in every payroll we run, alongside rest day pay and the 72-hour limit. If most of your workforce are pass holders, see our work permit payroll service, or read how payroll pricing works.
Official sources: MOM, calculate overtime pay for a monthly-rated employee and MOM, hours of work, overtime and rest days. This calculator gives an estimate for employees covered by Part IV of the Employment Act and is not legal advice.