260 workers receive S$600,000 in salary relief after their firms were wound up

About S$600,000 was paid out from the government’s short-term relief fund to 260 workers who went unpaid after their employers were liquidated between 2023 and 2025, Manpower Minister Tan See Leng said on Tuesday (Jan 13).

The fund, which is managed by the Tripartite Alliance for Dispute Management, is intended for employers who “truly cannot pay their salary arrears due to business failure”, said Dr Tan.

However, companies that “wilfully do not pay salaries despite having the means to do so” will be investigated and face action for breaching employment laws when they wind up, he warned.

Dr Tan was responding to Parliamentary questions from Workers’ Party Member of Parliament (MP) Gerald Giam (Aljunied GRC) relating to workers who have been affected by corporate liquidation. 

This includes the total number of workers affected in the last three years, the total quantum of unpaid wages, and the support rendered to these workers. 

He also asked whether the Ministry of Manpower (MOM) would consider measures such as mandatory wage recovery insurance, imposing personal liability on company directors for unpaid salaries, and amending the Insolvency, Restructuring and Dissolution Act 2018 to prioritise employees over secured creditors by default.

Giam said amendments to the Act would “deter irresponsible business closures and ensure workers are paid first”.

In his response, Dr Tan said MOM does not track the total number of workers with unpaid wages arising from corporate liquidations.

However, he said the government recognises the importance of employees’ claims on salaries in the event of their employers winding up. 

On the Act, Dr Tan said employees’ claims are “already ranked first and above all other unsecured debts”, behind only the costs and expenses of administration, which are necessary for the winding up to proceed smoothly.

Beyond support through the short-term relief fund, the government also helps affected workers “search for and take on new jobs with good longer-term prospects” through career-matching services and training programmes offered by Workforce Singapore, SkillsFuture Singapore and NTUC’s Employment and Employability Institute, he added.

Eligible workers who become involuntarily unemployed can also receive up to S$6,000 over six months under the SkillsFuture Jobseeker Support scheme, while lower-income households in need of help with basic expenses may approach their Social Service Office for financial assistance, Dr Tan said.

“Beyond measures to support displaced workers, the government encourages and supports Singaporeans to take care of their career health and stay relevant in their jobs,” he said, adding that initiatives such as the Career Health SG programme can help workers better navigate challenges and stay resilient in their careers.

Good jobs for graduates

In response to a separate Parliamentary question from People’s Action Party MP Yip Hon Weng (Yio Chu Kang SMC) on sectors that are actively hiring, Dr Tan said the financial and insurance services, professional services, and information and communications sectors have seen “active hiring and wage growth” for professionals, managers, executives and technicians.

As at September last year, there were 14,200 vacancies in these sectors, up from 12,600 a year earlier. Dr Tan added that jobs within these sectors were “suitable for new graduates”.

He added that in 2025, real median incomes in these sectors rose faster than the overall median growth of 4.3 per cent.

Source: The Business Times © SPH Media Limited. Permission required for reproduction.

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