MOM: More salary & wrongful dismissal claims in S'pore in 2025, likely linked to retrenchments & business closures
Salary and wrongful dismissal claims in Singapore rose to their highest levels since 2019 in 2025, with 13,083 claims lodged, primarily linked to increased dismissals, retrenchments, and business closures.
Intelligence analysis by Gemini 2.5 Flash
The Ministry of Manpower (MOM) and Tripartite Alliance for Dispute Management (TADM) reported a significant increase in employment claims in 2025, attributing it to a challenging labor market rather than a general decline in employment standards. Foreign employees drove the rise in salary claims, while local employees accounted for most wrongful dismissal claims.
Imagine if more grown-ups in Singapore lost their jobs or had trouble getting paid fairly last year. A special office called MOM helps them, and they saw more people asking for help in 2025, especially because some businesses closed or let people go. Most people got their money back, but it shows that times were a bit tough for some workers.
Analysis
Rising Tide of Employment Disputes
Singapore witnessed a significant surge in employment claims and appeals in 2025, reaching the highest levels since 2019. A total of 13,083 cases were lodged with the Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM, translating to an increase from 3.12 to 3.44 claims per 1,000 employees. MOM attributes this rise primarily to challenging labor market conditions, including an increase in dismissals, retrenchments, and business closures, rather than a systemic decline in employment standards. This suggests that economic restructuring and reorganization played a more significant role in driving these disputes, reflecting a period of adjustment for many businesses and their workforces.
Disparate Impacts on Local and Foreign Workers
The report highlights a notable divergence in the types of claims between local and foreign employees. Salary claims, which constituted the majority of appeals at 10,801 cases, were predominantly driven by foreign workers. Their claims surged from 4.64 to 5.16 per 1,000 employees, with the construction sector accounting for a substantial 46 percent of these disputes, followed by food and beverage services. Conversely, local employees saw a more moderate increase in salary claims. For wrongful dismissal claims, however, local employees made up the majority of the 2,168 cases, with their claims rising from 0.54 to 0.64 per 1,000 employees. Most salary disputes arose at the end of employment, often due to disagreements over final payments or employers facing financial distress, underscoring the vulnerability of workers during transitions.
Dispute Resolution and Enforcement
Despite the increase in claims, Singapore's dispute resolution mechanisms demonstrated a high rate of success. TADM successfully resolved 88 percent of salary claims and 67 percent of wrongful dismissal claims, preventing a larger caseload from reaching the Employment Claims Tribunals (ECT). A commendable 92 percent of employees fully recovered their owed salaries, with an additional 5 percent receiving partial recovery through various assistance schemes. The total sum recovered for employees increased from S$19 million in 2024 to S$22 million in 2025. MOM also reiterated its commitment to investigating non-payment of salaries, an offense, and taking enforcement actions, including restricting access to foreign manpower for non-compliant employers. This underscores the government's proactive stance in protecting workers' rights amidst economic shifts and ensuring accountability.
Key points
- Employment claims in Singapore reached their highest level since 2019 in 2025, totaling 13,083 cases.
- The increase is attributed to a rise in dismissals, retrenchments, and business closures amid labor market restructuring.
- Salary claims, making up 10,801 cases, were largely driven by foreign employees, especially in the construction sector.
- Wrongful dismissal claims, numbering 2,168, saw a rise primarily among local employees.
- 88% of salary claims and 67% of wrongful dismissal claims were resolved at TADM, with 92% of employees fully recovering their dues.
The high resolution rate at TADM and the significant amount of money recovered for employees suggest that Singapore's existing dispute resolution mechanisms are largely effective in addressing claims. MOM's commitment to investigating non-payment and taking enforcement actions also provides a strong deterrent against errant employers, fostering a more secure environment for workers.
The continued rise in claims, particularly among foreign workers in vulnerable sectors like construction, indicates ongoing economic pressures and potential exploitation. The fact that 3% of high-income earners did not recover their owed salaries also points to potential gaps in the system for certain demographics or complex cases.
