No Plans to Increase Minimum Annual Leave, Says MOM; Encourages Employers to Consider Comprehensive Benefits

SINGAPORE: The Ministry of Manpower (MOM) has no plans to increase the minimum annual leave entitlement but is urging employers to consider a more holistic approach to benefits and flexible work arrangements. This response was given by Senior Minister of State for Manpower Koh Poh Koon in Parliament on April 3, 2024, following a question from Member of Parliament Louis Ng, who had previously raised the topic in past discussions.

Acknowledging Ng’s persistent advocacy on the issue, Koh noted that while the Employment Act provides a minimum of seven days’ annual leave, employees gain an additional day per year of service with the same employer. As of 2022, over 90% of full-time resident employees between 25 and 64 received more than seven days of leave, and nearly 65% had 15 days or more—a noticeable increase from 2018’s figures.

Koh emphasized that annual leave entitlements should be evaluated alongside other benefits such as public holidays, sick leave, and parental leave, as well as in light of the business cost implications. He encouraged employers to review employment benefits “holistically” to better attract and retain talent in today’s tight labor market.

Addressing the topic of productivity, Koh stated that while more leave could increase business costs due to additional staffing needs, rest and productivity can also be supported through training, job redesign, and improved equipment. He also highlighted flexible work arrangements as a means to help employees balance work and personal needs, while acknowledging Ng’s concerns that such options might not be feasible for lower-income workers. Koh assured Parliament that the government remains committed to supporting fair work-rest cycles for all workers.