Singapore gives $466,000 in relief to workers affected by company closure

The fund is meant to help employers who "truly cannot pay their salary arrears due to business failure", Manpower Minister Tan See Leng said recently, as reported by The Business Times.

People walk on the street during lunch break at Raffles Place in Singapore on January 22, 2025. Photo by AFP

Firms that "willfully do not pay salaries despite having the means to do so" will be investigated and may face action for breaching employment laws when they are wound up, he warned.

Tan also said his ministry does not track the total number of workers with unpaid wages arising from corporate liquidations.

Nonetheless, he said the government recognizes the importance of employees’ salary claims when employers wind up their businesses.

Beyond assistance 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 programs, he added.

Eligible workers who become involuntarily unemployed can receive up to SGD6,000 over six months under the SkillsFuture Jobseeker Support scheme, while lower-income households needing help with basic expenses may seek financial assistance from their social service office.

"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," Tan said.

Regarding the labor market, he 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 2025, there were 14,200 vacancies in these sectors, up from 12,600 a year earlier. Tan said roles in these sectors were "suitable for new graduates".

He added that in 2025, real median incomes in these sectors grew faster than the overall median income increase of 4.3%.