MOM: 40 employers face scrutiny for wage violations; 120 salary disputes filed annually by work permit holders

SINGAPORE: In recent years, Singapore has seen a steady number of salary-related disputes filed by work permit holders. Between 2020 and 2024, around 120 salary claims were lodged annually at the Employment Claims Tribunal (ECT), according to data from the Ministry of Manpower (MOM) featured in a Straits Times press release. While these claims cover a range of employment issues, they shed light on ongoing concerns about payment practices and workplace transparency.

Annual salary disputes – the numbers behind the claims

On average, 120 salary-related claims were submitted each year to the ECT from 2020 to 2024, as revealed by MOM. These claims often concern issues such as non-payment, underpayment, or disagreements over salary-related matters. While the ministry does not specifically track claims involving employers’ failure to provide itemized payslips or to pay salaries electronically, it does monitor these areas through proactive inspections and complaints. Over the past five years, MOM has investigated approximately 40 employers annually for failing to provide itemized payslips or pay salaries via electronic methods.

A look at common claims in Singapore

The ECT hears claims related to statutory employment laws under the Employment Act, the Retirement and Re-employment Act (RRA), and the Child Development Co-Savings Act (CDCA). Some of the most common grievances include non-payment or partial payment of salary, unpaid overtime work, and salary deductions without authorization.

For both local and foreign employees, the top claim items remain fairly consistent. For local employees, disputes often focus on basic salary, salary instead of notice, and the encashment of unused annual leave. Meanwhile, foreign employees tend to file claims related to unpaid overtime, work on rest days, and public holiday pay.

Salary claims and a closer look at trends

While salary claims in Singapore have remained relatively stable, there has been a slight increase in the incidence rate. According to the MOM’s Employment Standards Report 2023, the rate of salary claims was 2.93 per 1,000 employees, an uptick from 1.68 per 1,000 in 2022 but still lower than the pre-COVID rate of 2.68 in 2019. Despite this increase, the vast majority of claims (88%) were resolved through the Tripartite Alliance for Dispute Management (TADM), with only 12% requiring adjudication by the ECT.

As the workplace continues to evolve, the data highlights the ongoing importance of ensuring fair and transparent payment practices, particularly for work permit holders in Singapore.