New MOM Rules for Singapore Companies 2017

The Singapore Government has announced several new legislative changes. These new MOM Rules will be taking effect during 2017.

1. Paid Paternity Leave increased to 2 weeks

As of 1 January 2017, eligible working fathers are entitled to have two weeks of paid paternity leave funded by the Government.

Eligibility

• The child should be a Singapore citizen born on or after 1 January 2017.
• The Father is or had been lawfully married to the child’s mother between conception and birth. (Not applicable for adoptive fathers whose formal intent to adopt is on or after 1 January 2017.)
• For employee: he should have served your employer for a continuous period of at least 3 months before the birth of the child.

For self-employed: you have been engaged in your work for a continuous period of at least 3 months before the birth of your child, and have lost income during the paternity leave period.

Paternity leave can be taken as follows:

Arrangement	2 weeks of Government-Paid Paternity Leave (GPPL.)
Default, without any mutual agreement	2 continuous weeks within 16 weeks of the child’s birth.
Flexible, by mutual agreement	Either 2 continuous weeks any time within 12 months after the birth of the child. Or Split the 2 weeks into working days and take them in any combination within 12 months after the birth of the child.
Calculating actual leave days	2 weeks X the number of working days in the week. (Capped at 6 working days per week)

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2. Shared Parental Leave increased to 4 weeks

With effect from July 2017, working fathers can share up to 4 weeks of their wives’ 16 weeks of maternity leave, as long as the spouse agrees. At present, only one week can be shared. This includes one week each of childcare and unpaid infant care leave respectively that working fathers are already entitled to.

Eligibility

Working parents must meet the following requirements::

• The child is a Singapore citizen born on or after 1 July 2017.
• The child’s mother qualifies for Government-Paid Maternity Leave (GPML).
• The parents are lawfully married.

Arrangement	4 weeks
Default, without any mutual agreement.	Take up to 4 continuous weeks within 12 months after the birth of the child.
Flexible, by mutual agreement	Split the 4 weeks into working days and take them in any combination within 12 months after the birth of the child.
Calculating working days	4 weeks x the number of working days in the week. Capped at 6 working days.

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3. 16-weeks Government-Paid Maternity Leave, extended to unmarried mothers

As of 1 January 2017, eligible unwed working mothers will be entitled to 16 weeks Government-Paid Maternity Leave.

Eligibility

Working mothers must meet the following requirements:

• The child should be a Singapore citizen born on or after 1 January 2017.
• For employee: he should have served your employer for a continuous period of at least 3 months before the birth of the child.
• For self-employed: you have been engaged in your work for a continuous period of at least 3 months before the birth of your child, and have lost income during the paternity leave period.
• The employer has been given at least 1 weeks notice before going on maternity leave and informed as soon as possible of the delivery.

Related article: Singapore employment pass goalpost gets further

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4. Employment Pass minimum salary Increased

As of 1 January 2017, the qualifying fixed monthly salary for the new EP applicants will increase from S$3,300 to S$3600, in line with rising local wages.

Older, more experienced applicants are expected to command higher salaries commensurate with their work experience and skills sets.

Existing EP holders whose passes expire:

	From 1 Jan to 30 Jun 2017	From 1 Jul 2017, onwards
Duration of renewed pass	1 year, based on existing EP criteria.	Up to 3 years, based on new EP criteria.

Eligibility

The Employment Pass is for foreign professionals who:

• Have a job offer in Singapore.
• Work in a managerial, executive or specialized job.
• Earn a fixed monthly salary of at least S$3,600 (more experienced candidates need higher salaries).
• Have acceptable qualifications, usually a good university degree, professional qualifications or specialist skills.

Application for an Employment Pass is open to all nationalities. 

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5. Mandatory Retrenchment Notifications

With effect from 1 January 2017, employers must notify MOM of retrenchments within 5 working days after they notify the affected employees.

Applicability

Employers who employ at least 10 employees are required to notify MOM if 5 or more employees are retrenched within any 6 month period.

Failure to notify within the required timeline is an offense and employers may be liable to penalties, including a fine not exceeding $5,000.

Related Article: When can start you hiring in Singapore

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6. Retirement and Re-employment Criteria (effective 1 July 2017)

From 1 July 2017, employers are required to offer re-employment up to the age of 67. New regulations will also be implemented in the vent of re-employment by a different employer to safeguard employees.

Eligibility

Employees will be eligible for re-employment up to age 67 if:

• They a Singapore citizen or Singapore permanent resident.
• Have served their current employer for at least 3 years before turning 62.
• Have satisfactory work performance, as assessed by the employer.
• Are medically fit to continue working.
• Are born on or after 1 July 1952.

Re-employment by a different employer

If the employer is unable to re-employ the employee, the employer can transfer re-employment obligations to another employer instead of paying the Employment Assistance Payment (EAP) to the employee.

The following safeguards will be implemented:

• The employee must be willing to accept re-employment with the other employer.
• The other employer must be willing to take on the existing re-employment obligations of the employee, including:
  • Being required to offer re-employment to the employee up to age 67.
  • Offering EAP should the employer subsequently be unable to offer re-employment to the employee up to age 67.

Special Employment Credit (SEC)

Through the SEC, employers who voluntarily re-employ workers aged 65 and above will receive a wage offset of up to 8% of an employee’s monthly wages (wage capped at $3,000).

The SEC enhancement aims to help employers manage their overall costs and encourage them to voluntarily re-employ older workers aged 65 and above.

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