SingaporeWhat happens if my employer is insolvent and owes me salary?
If your employer in Singapore is insolvent and owes you unpaid salary, you may claim up to $7,500 per employee from the Government’s Wage Protection Scheme via the Ministry of Manpower — but only if your employer is covered under the Employment Act and the insolvency occurred after 1 April 2023.
What the Law Says
The Employment Act gives employees limited protection when an employer becomes insolvent and cannot pay wages. Section 21 provides the legal basis for wage claims in such situations, though it does not itself create a government payout scheme — that is administered separately under the Wage Protection Scheme (WPS), introduced in 2023.
Section 21 of the Employment Act 1968 empowers the Minister for Manpower to make regulations concerning the payment of wages in cases where an employer is unable to pay due to insolvency or other financial difficulties. It does not guarantee payment, but enables subsidiary legislation to support workers.
The current mechanism is the Wage Protection Scheme (WPS), launched on 1 April 2023. Under WPS, eligible employees can claim unpaid salaries — up to $7,500 per person — for up to three months of arrears, provided their employer was covered under the Employment Act and entered insolvency (e.g., liquidation or judicial management) on or after the WPS start date.
Claims must be submitted within 60 days of the insolvency event (e.g., appointment of liquidator). The Ministry of Manpower assesses eligibility and disburses funds directly to employees.
Statutory TextThe Minister may make regulations for the purpose of securing the payment of wages to employees in cases where employers are unable to pay wages owing to insolvency or other financial difficulties.
— Employment Act 1968, s. 21 — Power to make regulations for payment of wages in cases of insolvency
What to Do
Confirm your employer has been placed into formal insolvency (e.g., liquidation or judicial management) — check with the Official Receiver or your employer’s appointed liquidator.
Gather proof of employment and unpaid salary: payslips, employment contract, bank statements, and termination letter.
Submit a Wage Protection Scheme claim online via MOM’s portal within 60 days of the insolvency date.
Monitor your claim status through MOM’s e-Service and respond promptly to any requests for additional documents.
If denied, request written reasons from MOM and consider seeking advice from a union or legal aid provider.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.