Can my employer reduce my salary unilaterally?

What the Law Says

The Employment Act protects employees from unilateral changes to key terms of employment — especially salary — unless agreed in writing.

Under Singapore law, an employee's salary is a fundamental term of the employment contract. Any reduction must be mutually agreed upon — the employer cannot impose it alone.

Section 8 of the Employment Act 1968 explicitly prohibits employers from making deductions from wages except in specific, limited circumstances — and salary reduction is not among them unless the employee consents in writing.

Even if your employment contract includes a 'flexibility clause', courts and the Ministry of Manpower (MOM) have consistently held that such clauses do not override the requirement for informed, voluntary, and written consent to a pay cut.

Statutory Text

No employer shall make any deduction from the wages of any employee except— (a) deductions required or authorised by any written law; (b) deductions authorised by the employee in writing for his benefit; (c) deductions for absence from work; (d) deductions for damage to or loss of goods expressly entrusted to the employee's care; (e) deductions for house accommodation or amenities provided by the employer; or (f) deductions for payments due to a co-operative society of which the employee is a member.

— Employment Act 1968, s. 8 — Deductions from wages

What to Do

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