How is salary in lieu of notice worked out in Singapore?

Salary in lieu of notice is the gross pay the employee would have earned during the required notice period. MOM’s monthly and daily salary page says it is worked out at the gross rate of pay, with a daily rate for a monthly-rated employee of (12 × monthly gross rate) ÷ (52 × average days required to work in a week). MOM gives no worked example, so the tool’s conversion of weeks, calendar days and months into pay is a convention of ours.

What counts in the gross rate of pay?

On the same MOM page, the gross rate includes allowances the contract entitles the employee to. Overtime, bonus, annual wage supplement, reimbursement of special expenses, productivity incentive payments, and travel, food and housing allowances are left out.

What is the notice period if the contract is silent?

MOM’s termination with notice page sets the notice by length of service when the contract does not state it:

  • 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

MOM does not say on which day length of service is measured. The tool measures from the first day of work to the day notice is given (our convention) and flags dates near a threshold.

How do you count the last day of the notice period?

MOM counts the day notice is given, public holidays, rest days and non-working days. Its examples: 1 day’s notice ends the same day; 1 month’s notice given on 15 July 2025 ends on 14 August 2025, and given on 29, 30 or 31 January or 1 February 2025 it ends on 28 February 2025. Weeks, calendar days and other numbers of months are our extension of that counting. The tool lists public holidays inside the period from MOM’s list, using its 2026 and 2027 dates, and does not move a last day that falls on a weekend or holiday, as MOM’s page does not say it moves.

What does a worked example look like?

Our illustration: a sales coordinator works five days a week on S$3,000 basic salary plus a S$300 allowance written into the contract, so the gross rate is S$3,300. A S$150 transport allowance, overtime and bonus are left out.

  • Daily gross rate: 12 × S$3,300 ÷ (52 × 5) = S$39,600 ÷ 260 = S$152.31 (S$152.3077)
  • 1 day: S$152.31
  • 1 week, as 5 working days: S$761.54
  • 2 weeks, as 10 working days: S$1,523.08
  • 4 weeks, as 20 working days: S$3,046.15

The tool rounds once, at the end. One month’s notice, paid as one month’s gross rate (our assumption), is S$3,300.00, S$253.85 more than 4 weeks, so put the unit and method in the contract.

What does this calculator not do?

It does not decide who pays: MOM’s termination without notice page says an employee who resigns without notice pays, and so does the party in breach, and its FAQ on asking an employee to leave early says the employer pays then, with none after a misconduct dismissal. It works for monthly-rated employees only, and does not work out CPF, unused leave or deductions from final pay. MOM’s paying salary page sets the final-pay deadlines. For notice in working days it gives the pay but no end date, as MOM does not say how to count them. See our notice period guide, holiday pay guide and first-employee checklist.

Common questions

What is the notice period in Singapore if the contract does not state one?

MOM’s default is 1 day for under 26 weeks of service, 1 week for 26 weeks to under 2 years, 2 weeks for 2 years to under 5 years and 4 weeks for 5 years or more.

How is salary in lieu of notice calculated?

At the gross rate of pay for the notice period. The monthly-rated daily rate is (12 × monthly gross rate) ÷ (52 × days worked in a week), so S$3,300 on a five-day week gives S$152.31 a day.

Does the notice period include weekends and public holidays?

Yes, says MOM: it includes the day notice is given, public holidays, rest days and non-working days.

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