By The Ledger desk · Last verified 11 October 2026
If you are retrenched in Singapore, you are owed notice (or salary in lieu) as set out in your contract, plus all salary and unused leave on your last day. With at least two years’ service, you are eligible for a retrenchment benefit; the prevailing norm is two weeks’ to one month’s salary for each year of service, and one month per year in many unionised firms. Retrenchment benefit is not taxable and attracts no CPF. Employers with 10 or more staff must notify MOM within five working days. If you earned S$5,000 a month or less, the SkillsFuture Jobseeker Support scheme pays up to S$6,000 over six months while you look for work.
Losing a job is a jolt, and it is fine to feel it. The rules below are on your side, and knowing them gives you calm footing for the conversations ahead.
Quick facts
- Retrenchment benefit eligibility: 2 years’ service or more; shorter-serving staff may get an ex-gratia payment.
- Norm: 2 weeks to 1 month’s salary per year of service.
- Notice follows your contract; if it is silent, statutory minimums apply.
- All salary, notice pay and unused leave are due on your last day.
- Retrenchment benefit: no CPF, and generally not taxable; salary in lieu of notice is taxable.
- Jobseeker Support: up to S$6,000, for citizens (and from 2026, PRs) aged 21+ earning up to S$5,000 a month.
How much notice should you get?
Your contract decides. If it names no notice period, MOM’s minimums apply:
| Length of service | Minimum notice |
|---|---|
| Less than 26 weeks | 1 day |
| 26 weeks to under 2 years | 1 week |
| 2 years to under 5 years | 2 weeks |
| 5 years or more | 4 weeks |
Your employer may pay salary instead of having you work the notice. MOM encourages longer notice so staff can prepare.
Working out your retrenchment benefit
The amount comes from your contract or collective agreement. If neither says, it is negotiated, with the norm as the guide. If a pay cut came shortly before, the benefit should be based on your salary before the cut.
Worked example: Siti earns S$5,000 a month and has six full years of service; her contract is silent on both benefit and notice.
- At one month per year: 6 × S$5,000 = S$30,000.
- At two weeks per year (about half a month): 6 × S$2,500 = S$15,000.
- Notice: with 5+ years, at least 4 weeks, or salary in lieu.
- Plus her final salary and pay for any unused annual leave.
So the norm points to roughly S$15,000 to S$30,000 in benefit, depending on the firm’s finances and industry.
SkillsFuture Jobseeker Support: who qualifies
Run by Workforce Singapore, the scheme supports people who lost work involuntarily. As of October 2026, you must:
- be a Singapore Citizen aged 21 or above (PRs aged 21+ were due to be included from the first quarter of 2026);
- have averaged S$5,000 a month or less in gross income over the past 12 months;
- have worked in Singapore for at least six of the past 12 months;
- be unemployed involuntarily, such as through retrenchment, dismissal, business closure, or illness or injury;
- live in a home with an annual value of S$31,000 or less, and not have received a payout in the past three years.
Payouts total up to S$6,000 over six months, starting at up to S$1,500 in the first month and tapering after that, and never more than your last monthly salary. You earn them by collecting points for job-search activities such as career coaching, workshops, training and job applications. Payouts stop when you start a new job. Apply at go.gov.sg/jobseekersupport or call 6883 5885.
Your first week: a checklist
- Get the retrenchment letter and check the last day, notice, benefit and leave payout in writing.
- Ask whether your company has filed MOM’s retrenchment notification, which can trigger outplacement help from e2i or Workforce Singapore.
- Apply for Jobseeker Support if you qualify.
- If pay is missing or wrong, contact the Tripartite Alliance for Dispute Management (TADM) for mediation.
- Review insurance and loan repayments before your income stops.
The WahLiao Verdict
Read the letter, do the sums, and ask politely in writing about anything below the norm; many firms improve offers when asked clearly. Bank the benefit as your runway rather than spending it, apply for Jobseeker Support early, and take the coaching seriously, since that is how the payouts are earned. Be kind to yourself: retrenchment is a business decision, not a verdict on you.
Questions people ask
Is retrenchment benefit required by law?
There is no fixed statutory amount. Eligible staff with two years’ service should receive one, with the amount set by contract, collective agreement or negotiation, guided by the norm.
Do I pay tax on my retrenchment package?
Compensation for loss of employment is generally not taxable, but salary, leave pay and salary in lieu of notice are. IRAS explains how to tell them apart.
I served under two years. Do I get anything?
You are still owed notice, salary and leave. MOM says employers may pay an ex-gratia sum out of goodwill.
Can I get Jobseeker Support if I resigned?
Generally no. The scheme is for involuntary unemployment, such as retrenchment or dismissal.
Sources: Ministry of Manpower, responsible retrenchment and benefits; Ministry of Manpower, notice periods; Workforce Singapore, SkillsFuture Jobseeker Support eligibility; Ministry of Manpower, Jobseeker Support factsheet; IRAS, tax on retrenchment benefits. The Ledger explains; it does not advise.
Read next: SkillsFuture Credit in 2026: What You Still Have, What Expired and the S$4,000 at 40 · In Debt? Credit Counselling Singapore and the Debt Repayment Scheme · Back to The Ledger
For what’s worth it this week, with the bill shown, read The WahLiao Week.
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