Resigning from a company can be an exhausting process. In Singapore, one of the most common disputes between employers and departing employees involves Unused Annual Leave. Can your boss force you to clear it? Are they legally required to pay you cash instead? Let's dive into what the Ministry of Manpower (MOM) says.
If you choose to work until your last day of the notice period, your company must "buy back" your remaining leaves. The daily rate for leaf encashment is calculated based on your Gross Rate of Pay, using the following mandatory formula:
Gross Daily Rate = (12 × Basic Salary) / (52 × Number of Working Days Per Week)
For example, if you earn $4,000/month on a standard 5-day work week, your daily rate is exactly $184.62. 5 days of unused leave equals $923.08 in extra cash settlement.
Alternatively, you can use your annual leave to offset your notice period. This means your physical last day at the office happens earlier, but your official last day of employment remains the same. You will still receive your normal basic monthly salary, but no extra encashment cash.
Always check your company handbook. While MOM guarantees encashment for statutory annual leave (usually the first 7 to 14 days depending on years of service), any "additional corporate leaves" provided by the company are subject to company policy.
To avoid getting shortchanged by HR, do a quick cross-verification. Head over to our automated MOM Notice & Leave Encashment Calculator to instantly figure out your exact cash settlement value in 3 seconds.