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Redundancy pay: Singapore vs United States

Statutory redundancy pay in Singapore and the US, side by side, with the primary source for every figure.

How does redundancy pay compare between Singapore and US?

Singapore: Not statutory. The tripartite norm is 2 weeks to a month of salary per year of service for employees with 2+ years, but it is advisory. United States: None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.

Singapore vs United States, side by side

SingaporeUnited States
The ruleNot statutory. The tripartite norm is 2 weeks to a month of salary per year of service for employees with 2+ years, but it is advisory.None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.
At 1 yearNo statutory scaleNo statutory scale
At 5 yearsNo statutory scaleNo statutory scale
At 10 yearsNo statutory scaleNo statutory scale
Key numbersStatutory entitlement: None (advisory norm); Prevailing norm: 2 weeks to 1 month of salary per year of service; Usual eligibility: 2 years' serviceFederal statutory severance: None; WARN liability for missed notice: Up to 60 days' back pay and benefits

Singapore

Retrenchment benefit in Singapore depends on the contract or collective agreement; where neither provides for it, the amount is negotiated. MOM's guidance puts the prevailing norm at 2 weeks to one month per year of service, with 2 years' service the usual eligibility line and shorter-serving staff handled ex gratia. Employers with 10 or more employees must notify MOM of every retrenchment within 5 working days.

  • Statutory entitlementNone (advisory norm)
  • Prevailing norm2 weeks to 1 month of salary per year of service
  • Usual eligibility2 years' service
  • MOM notificationMandatory for employers with 10+ staff
  • Never present the norm range as a legal minimum; it is not one.
  • The old 'only notify if 5+ retrenched' rule is outdated; since Nov 2021 every retrenchment at a 10+ employee firm is notifiable.

Source: Ministry of Manpower (Tripartite advisory; notification regime since Nov 2021). Checked July 2026.

United States

The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms. Severance in the US comes from employment agreements, severance plans (enforceable under ERISA once promised) or collective agreements. WARN's teeth are back pay for missing notice, up to 60 days, not a severance formula.

  • Federal statutory severanceNone
  • WARN liability for missed noticeUp to 60 days' back pay and benefits
  • 'Two weeks per year of service' is common US practice, but it is policy, not law.
  • New Jersey's mini-WARN is the notable state exception, mandating severance for large layoffs.

Source: US Department of Labor (FLSA position, current). Checked July 2026.

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (Singapore) and True cost of an employee (US). The complete six-market picture is on the Redundancy pay by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
SingaporeMinistry of ManpowerTripartite advisory; notification regime since Nov 2021Checked July 2026
United StatesUS Department of LaborFLSA position, currentChecked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on redundancy pay in Singapore?

Not statutory. The tripartite norm is 2 weeks to a month of salary per year of service for employees with 2+ years, but it is advisory. Retrenchment benefit in Singapore depends on the contract or collective agreement; where neither provides for it, the amount is negotiated.

What is the rule on redundancy pay in the US?

None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment. The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms.

Where can I check the source figures?

The sources section below links the Singapore and the US government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Ministry of Manpower, the US Department of Labor or your own adviser. Last reviewed July 2026.