Overtime Pay (MOM) in Singapore: 5 Mistakes to Avoid
Uses the Ministry of Manpower formula to work out the hourly basic rate and overtime pay for employees covered by Part IV of the Employment Act. The maths is not complicated, but a handful of errors come up again and again in this and related cpf & salary calculations. Here is what to watch for.
The Employment Act sets out how hourly and daily rates are calculated for overtime, public holiday work and salary deductions. These formulas use the monthly basic rate of pay rather than gross salary, which is why the numbers can look lower than a simple division of your salary by hours worked.
CPF distinguishes between ordinary wages, which are paid for work in the month such as basic salary and fixed allowances, and additional wages, such as annual bonuses and leave encashment. Ordinary wages are capped at S$8,000 a month from January 2026, while additional wages are capped by an annual ceiling of S$102,000 minus the ordinary wages already subject to CPF in the year.
1. Treating bonuses like ordinary wages
Bonuses are additional wages, subject to the annual S$102,000 ceiling minus ordinary wages already counted.
2. Mixing up gross and basic salary
Overtime and many MOM formulas use basic salary, while CPF uses total ordinary wages including fixed allowances.
3. Ignoring the graduated band below S$750
Employees earning between S$500 and S$750 pay a phased-in contribution, not the full rate.
4. Counting employer CPF as take-home pay
Employer contributions go straight into CPF accounts. They are part of your package but never appear in your bank account.
5. Using the wrong age band
Rates change at 55, 60, 65 and 70, and the new rate applies from the first day of the month after the birthday.
The correct method
Hourly basic rate = (12 × monthly basic salary) ÷ (52 × 44). Overtime pay = 1.5 × hourly rate × overtime hours.
For example, with these inputs:
- Monthly basic salary (S$): 2,400
- Overtime hours worked: 20
the calculator returns:
- Hourly basic rate: S$12.59
- Overtime rate (1.5×): S$18.88
- Overtime pay: S$377.62
Related calculations
- Salary Increment Calculator: Shows the new salary after a percentage raise and how much more you earn per year.
- Pro-Rated Annual Leave Calculator: Calculates leave earned for part of a year.
- Salary Converter (Annual, Monthly, Hourly): Converts an annual package into monthly, weekly, daily and hourly figures.
- CPF OA Interest Calculator: Projects your CPF Ordinary Account balance with the 2.5% floor rate and regular contributions.
The Overtime Pay Calculator (MOM) applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Overtime Pay Calculator (MOM)