Explaining Employee’s Entitlements Regarding the Annual Leave in Singapore
The number of annual leave you are entitled to depend on your length of service with your employer. For the first year, it starts with at least 7 days. Then, the number of days increases by one every year until the eighth year. After the eighth year and afterwards, you can get a paid annual leave of at least 14 days.
An Annual Leave Depends on the Employer
Remember that the annual leave is dependent on the Employer. In the event where you leave your current employer to join another organisation, your annual leave will be reset and recalculated.
Pro-Rated Leave is calculated based on the number of complete months worked.
The formula is as follows:
(Number of completed months of service ÷ 12) × Number of days of annual leave entitlement
If the number is in fiction, it will be rounded up or down depending on the fiction.
For example, you have served 7 complete months with your current employer, the calculation will be as follows:
(7 (completed months of service) /12) × 7 (Number of days of annual leave entitlement for the first year)
4.0833 is rounded down to 4 because the fraction is less than 0.5. If the fiction is greater than 0.5, for example, if we got 4.57 as the answer, it will be rounded up to 5.
Annual Leave in Singapore and Payment
Under the Employment Act, your employer must pay your gross salary for every day of paid annual leave.
If you have exhausted your annual leave, you may apply for unpaid leave under the consent of your employer.
Annual Leave in Singapore During Your Notice Period
Your notice period will be taken into account when calculating your pro-rated annual leave.
For example, your first day of work is on 1st January and you tender your resignation on 1st June. Assuming your notice period is one month, your last day of service will be on 30th July.
In this case, you will need to include all six completed months you have worked in your office, including June to July while calculating the annual leave.