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 leave encashment is calculated based on your Gross Rate of Pay, using the following mandatory formula:
For example, if you earn $4,000 per month on a standard 5-day work week, your daily rate is approximately $184.62. Five days of unused leave equals approximately $923.08 in additional settlement payment.
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 unchanged. You will continue receiving your normal salary but will not receive additional leave encashment payment.
Always check your company handbook. While MOM guarantees encashment for statutory annual leave, any additional company-provided leave may be governed by internal policy.
To avoid getting shortchanged during resignation, use our automated MOM Notice & Leave Encashment Calculator to estimate your payout instantly.