Retrenchment benefit calculator (Singapore)
Estimate what a retrenchment could be worth in Singapore. Enter your monthly salary and years of service, and this tool shows the retrenchment benefit range from the prevailing norm (2 weeks to 1 month of salary per year of service), plus the statutory notice you are due. It is an estimate based on MOM guidelines and the Tripartite Advisory, not a guarantee, since retrenchment benefit is set by your contract.
Estimate only, based on the prevailing norm. Your actual entitlement depends on your employment contract or collective agreement.
How the estimate works
Two figures drive the result, both from official sources. Eligibility and the benefit range come from MOM and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment: employees with at least 2 years of service are eligible, and the prevailing norm is 2 weeks to 1 month of salary per year of service (1 month per year in unionised companies). The notice period comes from the Employment Act statutory minimums, which apply where your contract does not set a longer period.
| Length of service | Minimum notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Worked examples
To show the range in practice, here is the estimated retrenchment benefit for a few common situations, using the same 2 weeks to 1 month per year norm (non-unionised). Your own figure depends on your contract, so treat these as reference points.
| Monthly salary | Years of service | Estimated benefit range | Statutory notice |
|---|---|---|---|
| S$3,000 | 3 years | S$4,500 – S$9,000 | 2 weeks |
| S$4,000 | 2 years | S$4,000 – S$8,000 | 2 weeks |
| S$5,000 | 5 years | S$12,500 – S$25,000 | 4 weeks |
| S$6,000 | 8 years | S$24,000 – S$48,000 | 4 weeks |
| S$8,000 | 10 years | S$40,000 – S$80,000 | 4 weeks |
A worker with under 2 years of service is not eligible for a retrenchment benefit under MOM's guidelines, though an employer may still offer an ex-gratia goodwill sum. In a unionised company the norm is the top of the range: 1 month of salary per year of service.
For the full picture, including fair selection and your employer's duty to notify MOM, read retrenchment rights in Singapore. If you think a retrenchment was really an unfair dismissal, see unfair dismissal.
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Frequently asked questions
How is retrenchment benefit calculated in Singapore?
There is no fixed legal formula. The prevailing norm, set out in the Tripartite Advisory and repeated by MOM, is between 2 weeks and 1 month of salary for each year of service. The exact figure depends on your employer’s financial position and the industry, and on what your contract or collective agreement says. In unionised companies the norm is 1 month per year of service.
Do I qualify for retrenchment benefit?
MOM says employees who have served their employer for at least 2 years are eligible for a retrenchment benefit. If you have served less than 2 years, you are not eligible for the benefit as such, though your employer may offer an ex-gratia payment.
Is the calculator result what I am legally owed?
No. This is an estimate of the prevailing norm, not a guarantee. Retrenchment benefit is contractual: what you can actually claim depends on your employment contract or collective agreement. Use the estimate as a reference point, then check your contract and, if the figure looks off, get advice.
What notice am I entitled to if I am retrenched?
A retrenchment follows the termination terms in your contract. Where the contract is silent, the Employment Act sets minimum notice by length of service: 1 day under 26 weeks, 1 week from 26 weeks to under 2 years, 2 weeks from 2 to under 5 years, and 4 weeks at 5 years or more. Your employer can pay salary in lieu of notice instead. For the dollar value of that notice, not just the number of weeks, see the notice pay calculator.
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