Singapore Retrenchment & Severance Calculator
Calculate your statutory and tripartite retrenchment benefit, notice pay in lieu, accrued leave encashment, and find out which payout components are 100% tax-free under IRAS rules.
Employment & Salary Details
Retrenchment benefits paid purely as compensation for loss of office are exempt from Singapore income tax. Salary in lieu of notice and leave encashment are taxable.
Detailed Package Specification
š MOM Tripartite Guidelines on Retrenchment
The Singapore Ministry of Manpower (MOM), together with SNEF and NTUC, sets established practices:
- Eligibility: Employees with at least 2 years of service are entitled to retrenchment benefits under the Employment Act.
- Prevailing Norm: Between 2 weeks to 1 month salary per year of service, with 1 month being the norm for unionised companies.
- Mandatory MOM Notification: Employers with at least 10 employees must notify MOM within 5 working days of notifying retrenched staff.
š”ļø Tax Exemption (IRAS Form IR8A)
Crucial tax considerations under the Singapore Inland Revenue Authority:
- Compensation for loss of office: Is considered capital in nature and is not taxable.
- Salary in lieu of notice: Represents contractual income and is taxable.
- Leave encashment: Encashment of accumulated annual leave is also taxable under employment income.
š Official Singapore Statutory Comparative Matrix
| Statutory Heading / Component | Calculated Amount |
|---|---|
| Primary Settlement / Statutory Amount | S$0.00 |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.