Singapore Retrenchment: 2026 MOM & EAP Standards

Singapore’s labor market operates on a unique "Tripartite" consensus between the government, employers, and unions. While statutory redundancy pay is not strictly legislated for all sectors, the Ministry of Manpower (MOM) guidelines are the effective law. As of July 1, 2026, new retirement age protections have fundamentally changed the "EAP" (Employment Assistance Payment) landscape.

1. The July 1, 2026 Retirement Shift

Effective July 2026, Singapore’s statutory retirement age rises to 64.

Age Protection: Employers are legally prohibited from dismissing an eligible employee based on age.

The EAP Requirement: If an employer cannot offer re-employment to a worker reaching retirement age, they must provide an Employment Assistance Payment (EAP).

2. 2026 EAP Calculation Formula

The 2026 standard for EAP is a one-off payment equivalent to 3.5 months’ salary.

3. Mandatory Retrenchment Notifications (MRN)

For any company with 10 or more employees, the MOM enforces a strict 5-day rule.

The Window: Employers must notify MOM within 5 working days of informing employees of their retrenchment.

The Penalty: Failure to notify can lead to administrative penalties and a total suspension of the company's ability to apply for new Employment Passes (EP) for foreign talent.

4. 2026 Compliance Node