Category Archives: Dollar and Cents

Payment for Work on Holiday in Overseas

Re posted from HR Singapore

Can company choose not to pay holiday pay as employee is already provided per diem while on overseas trip during Singapore public holiday?

My reply:

Firstly, it is good to check if employee is covered under Employment Act first. If he/she is covered, my advice as follow:

Per diem generally refers to allowances given to staff for expenses incurred during overseas business trip. Such could be for lodging and food.
Public Holiday pay is not an allowance; a payment given to staff who worked on a Public Holiday for Public Holiday is a paid non-working day.

Unless the per diem payment given explicitly include the Public Holiday pay item (no less than 1 day basic), such should be separated from the per diem payment.

Top 3 Picks of the Week

Top 3 Picks of the week II.jpg

  1. Can we deploy our foreign employees to queue for Bak Kwa?

    This appeared in the news (see Migrant Workers Queue (Today)), where companies actually deployed their foreign employees to queue for Bak Kwa. While compensation was mentioned (half a day off, meal allowance, etc.), it is still illegal for both work permit and s pass holders as they are only allow to work in an occupation as stated in their permit card. Further, there is an issue on the compensation –  is this during office hours or after? If it’s the latter, what about overtime payment?
    Legal issues aside, while some foreigners are in favor of this arrangement (able to earn an extra income), I believe there will be some who are not willing to do so. Will this be fair for them?
    The clauses on disallowing foreign workers to work in an occupation other than that as stated in their permit card can be found in my Page Sources: Work Pass Conditions. (Forth and Fifth Schedule)

  2. New HDB Rule for Non-Malaysians Work Permit Holders in the
    Manufacturing Sector

    Effective 01 Jan, non-malaysians work permit holders from the manufacturing sector can no longer rent a whole HDB unit, thought they can still rent individual rooms. Those who are currently still under their existing contracts can stay till it expire.
    You can check out the news at HDB Rule Change (Today)

  3. Public Holiday Entitlements

    As shared previously, check out Entitlements during Public Holidays for the FAQs on entitlements for public holiday.
    Further, as CNY falls on a weekend, employees might be confused on their entitlements. You can check out on the various scenarios given at Scenarios of Work Schedule during CNY.

Lastly, we hope you had an enjoyable Chinese New Year!

Overseas Allowance covers Overtime Pay?

A friend once asked, if it is legal for his company to not pay him Overtime for those additional hours clocked while on overseas business trip. His company had highlighted to him that the Overseas Allowance given to him shall cover Overtime as well.

Sounds fishy?

If one is covered under Part IV of the Employment Act, he / she shall be entitled to Overtime claims. It doesn’t matter whether work is perform locally or abroad. Further, using allowance to cover OT pay should be deem as illegal.

Using Hourly Rate for Rest Day Pay

While we use hourly rate to calculate for OT rate, we have to use the basic rate of pay (based on Basic Salary) for calculating Rest Day pay, as per the provision(s) in the Employment Act.

Aside, you can refer to another similar FAQ for Rest Day pay:
Working on Rest Day considered for Overtime Pay?

Reference can be found under my Page “Sources”:
Rest Day Pay

Can I deduct my employee’s salary if he/she was late for work?

There are a lot of instances where supervisors wanted to deduct their subordinates’ salary for being late for work.
As per MOM, we can do so, but of course, we are not allowed to deduct more than the period he/she was late for.

I felt that such shall only apply for those who are constantly late for work, as there must be some sort of allowance for no one can be punctual every single day.

A similar FAQ can be found in the MOM Website:
MOM – Deduction for Lateness


Which type of allowances are excluded from Gross Rate of Pay?

Gross Rate of Pay is used for various purposes, most commonly known for encashing leave when one resigns from employment, paying salary in lieu of notice, etc.

While some companies use Basic + all Allowances to calculate Gross of Pay, based on the Employment Act, we can actually exclude Transport, Food, and Housing Allowances.

Reference can be found under my Page “Sources”:
Salary Definition