Rationale for Setting Seven Days as Minimum Legal Entitlement for Annual Leave

Mr Louis Ng Kok Kwang asked the Minister for Manpower (a) what is the rationale for setting seven days as the minimum legal entitlement for annual leave; and (b) whether the Ministry has plans to increase the number so that Singapore can rank higher among developed nations for annual leave entitlement.

The Employment Act (EA) stipulates employees' minimum terms and working conditions, including for paid annual leave. It seeks to protect the basic interests of employees while balancing business needs and ensuring employees' employability.

Specific to annual leave, the statutory minimum entitlement of seven days applies to employees who have worked with their employer for at least three months, but not more than one year. With each year of service, an employee's statutory entitlement increases, up to 14 days.

Statutory annual leave entitlements vary across developed economies. Some like the United Kingdom and Australia have relatively more generous provisions, while the United States does not have a federal law regulating paid annual leave. The minimum statutory annual leave entitlement in Singapore is comparable to that in jurisdictions such as Hong Kong and Taiwan.

Singapore's statutory annual leave entitlements should also be viewed alongside the paid sick leave, childcare leave, and other forms of leave provided for in our laws. Employees can use these other forms of leave over and above their annual leave entitlements. In other jurisdictions, such leave may not be available, or fully paid.

The Ministry of Manpower (MOM), together with the tripartite partners, completed a review of the EA in 2018. While there are currently no plans to increase the minimum statutory annual leave entitlement, MOM will continue to monitor employment trends both locally and internationally, and regularly review our laws and policies.