ASEAN KEY DESTINATIONS
Removal of salary cap in Employment Act to benefit 430,000 more PMEs: Lim Swee Say
SINGAPORE: About 430,000 more professionals, managers and executives (PMEs) will be covered under the Employment Act when it is amended to remove the S$4,500 salary cap, said Manpower Minister Lim Swee Say in Parliament on Monday (Mar 5).
"The exceptions are public servants, domestic workers and seafarers who are covered separately, such as by other Acts due to their nature of work," Mr Lim added in his ministry's committee of supply (COS) debate.
The removal of the salary cap and other amendments to Singapore’s main labour law will be introduced in Parliament later this year for implementation by April 2019.
With the revisions, these PMEs will enjoy core employee benefits under the Act which include redress for wrongful dismissal, public holiday and sick leave entitlements, timely payment of salary and allowable deductions.
Currently, only Singaporeans earning under S$4,500 come under the Act’s core provisions.
“Our workforce is changing fast, we now have more PMETs (professionals, managers, executives and technicians), and fewer rank-and-files. This trend will continue. … With PMETs making up 56 per cent of the local workforce now, going up to 65 per cent by around 2030, it is timely to make a more fundamental change to the coverage of EA,” said Mr Lim.
The changes proposed come after a month-long public consultation earlier in January.
With changes to the salary cap, more non-workmen employees will see stronger protection of their rights.
Currently, additional protection that covers hours or work, overtime pay and rest days are accorded only to workmen earning up to S$4,500 and non-workmen earning up to S$2,500.
The salary cap for non-workmen, who are typically white-collar rank-and-file workers such as clerks, will go up from S$2,500 to S$2,600. The enhancement will cover half of the workforce, about 100,000 people.
In terms of overtime pay, the salary cap for non-workmen will also be revised upwards from S$2,250 to S$2,600. About 100,000 non-workmen will benefit from this increase.
Additionally, disputes between employees and employers will be made easier to tackle.
The Employment Claims Tribunal will start hearing claims related to wrongful dismissal, which was previously heard by the Minister for Manpower.
This will be on top of salary-related disputes that are currently heard by the tribunal if unresolved by mediation by the Tripartite Alliance for Dispute Management.
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