answered on 10/08/2018
The Employment Act only confers entitlements to overtime pay where the employee is covered under Part IV of the Employment Act. An employee is covered under Part IV of the Employment Act if the employee is a workman earning a basic monthly salary of not more than S$4,500, or if the employee is not a workman but is covered by the Employment Act and earns a monthly basic salary of not more than S$2,500. Part IV does not apply to managers and executives regardless of salary. Employees covered under Part IV of the Employment Act are entitled to overtime pay calculated on an hourly basic rate. The Fourth Schedule to the Employment Act provides the calculation of hourly basic rate of overtime pay as follows: for monthly-rated employee: (12 x monthly basic rate of pay)/(52 x 44); for daily-rated employee: daily pay at the basic rate/working hours per day; and for piece-rated employee: total weekly pay at the basic rate of pay/total number of hours worked in the week. Section 21(2) of the Employment Act requires overtime pay to be paid within 14 days after the end of the salary period.