Employee claims over salary, wrong dismissal up amid more business woes

Amount recovered from employers in 2024 rises to $19 million from $14 million in 2023

- Tay Hong Yi

The rate of salary claims in 2024 climbed to its highest level since 2019, with 2.63 claims filed per 1,000 employees on the back of more business troubles in a challenging environment.

This rise in claims was largely driven by more dispute cases in sectors such as information and communications, construction and administrative support services.

The Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) said they received 9,848 salary claims in 2024.

This makes up the bulk of the 11,685 employment claims and appeals lodged in total, which is up by nearly 2,000 cases from 2023.

Most of the remaining claims were for wrongful dismissal.

In total, employees recovered $19 million in salary claims in 2024, a jump of over 35 per cent from $14 million the year before and the highest in recent years.

"The increase is consistent with the higher number of salary claims lodged in 2024," said MOM and TADM in their joint annual employment standards report released on Aug 26.

Local employees lodged 46 per cent of all claims, while the remaining 54 per cent came from foreign employees.

Salary claims by local employees rose from 1.32 per 1,000 in 2023 to 1.59 per 1,000 in 2024.

The information and communications sector saw a jump in salary claims from locals. It moved from third place in 2023 to the top spot in 2024.

MOM and TADM said this was due to several companies in the sector facing cash flow issues.

The sector, which most tech firms come under, accounted for 13 per cent of salary claims made by local employees—higher than the 11 per cent lodged in the administrative and support services sector, and 10 per cent in food and beverage (F&B) services.

For foreign employees, the incidence of salary claims increased from 3.91 per 1,000 in 2023 to 4.64 per 1,000 in 2024.