Full Breakdown
Singapore’s Employment Claims Surge in 2025 Amid Business Restructuring
7/25/2026, 11:54:45 AM
Core Event: Record-High Salary and Wrongful-Dismissal Claims
In 2025, Singapore recorded 13,083 employment claims and appeals—the highest level since at least 2019. The incidence rose to 3.44 claims per 1,000 employees, up from 3.12 in 2024. Salary claims numbered 10,801, while wrongful-dismissal claims reached 2,168. The Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) linked the increase to heightened job turnover caused by business reorganisations, retrenchments and closures.
Background & Context
The Employment Standards Report, released on July 24, 2026, tracks annual trends in Singapore’s labour market. Salary-related disputes have risen steadily since 2019, surpassing pre-COVID levels for the first time in 2025, coinciding with a wave of corporate restructuring that began in the early 2020s.
Data & Statistics
- Overall claims: 13,083 (3.44 per 1,000 employees).
- Salary claims: 10,801 (2.84 per 1,000), up from 2.63 in 2024.
- Foreign-employee salary claims: 5.16 per 1,000 (up from 4.64).
- Local-employee salary claims: 1.61 per 1,000 (up from 1.59).
- Sector breakdown for foreign-employee salary claims: Construction (46 %), Food & Beverage (10 %), Professional, Scientific & Technical (9 %).
- Sector breakdown for local-employee salary claims: Administrative & Support Services (12 %), Professional, Scientific & Technical (10 %), Food & Beverage (9 %), Wholesale Trade (9 %).
- Resolution rates: About 88 % settled through mediation at TADM; the rest proceeded to the Employment Claims Tribunal (ECT).
- Recovery outcomes: 92 % recovered full salaries, 5 % partially, and 3 % received nothing. Total recovered wages rose to S$22 million from S$19 million in 2024.
- Wrongful-dismissal claims: 2,168 (0.57 per 1,000), up from 1,720 (0.46) in 2024.
- Local-employee rate: 0.64 per 1,000; foreign-employee rate: 0.44 per 1,000.
- 67 % resolved at TADM, 33 % referred to ECT.
- Total payments for dismissal claims increased to S$2.7 million from S$2.1 million.
Official Statements & Responses
MOM emphasized that non-payment of salary is an offence and may trigger warnings, fines or prosecution. The ministry reiterated its policy of restricting foreign-manpower access for employers who fail to pay salaries in full. Both MOM and TADM attributed the rise in claims to labour-market conditions tied to business reorganisation rather than a systemic erosion of standards, and highlighted a data-driven enforcement approach targeting high-risk sectors.
Why It Matters / Impact
The surge underscores the vulnerability of workers—especially foreign employees in construction—to wage arrears during restructuring. High mediation success rates demonstrate the effectiveness of the tripartite dispute-resolution framework, while the dip in full-salary recovery (from 94 % to 92 %) signals growing challenges for some claimants. Enforcement measures that limit foreign-manpower access aim to incentivise timely payments and may influence hiring practices across sectors. Ongoing monitoring will inform policy adjustments to safeguard standards while accommodating legitimate restructuring.
Timeline
- July 24, 2026: MOM and TADM publish the Employment Standards Report 2025, presenting the latest claim statistics and analysis.
Conflicting Reports & Gaps
Some sources describe the proportion of salary claims resolved at TADM as “more than 80 %,” while others specify 88 %. Both figures convey a high resolution rate, but the exact percentage varies across reports. No additional quantitative gaps were identified.
