Debated in Parliament on 21 Apr 2023.
Mr Chua Kheng Wee Louis asked the Minister for Manpower over the last five years, what is the median and average retrenchment benefit per year of service for each retrenched worker as broken down respectively by (i) industry and (ii) unionised and non-unionised companies.
To be eligible for retrenchment benefit, employees must have at least two or more years of service with their employer. As stated in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, the prevailing norm for retrenchment benefit is between two weeks and one month salary per year of service, depending on the financial position of the company and the industry norm.
Based on retrenchment notifications received between April 2020 and March 2023, about 90% of eligible employees received retrenchment benefit. Of these employees, about 90% received at least two weeks' salary per year of service.
The quantum of retrenchment benefit varies significantly across industries, but the overall median of retrenchment benefit paid is one month of salary per year of service. For employees in unionised companies, the median retrenchment benefit paid is one month salary per year of service while that for employees in non-unionised companies is 0.8.
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