TLDR
Retrenchment is tough, but the first few steps you take can make the difference between prolonged uncertainty and a smoother career transition. From clarifying your benefits to tapping government support, here are five critical steps retrenched workers in Singapore should act on immediately.
Retrenchment is not just a career event — it’s an emotional and financial turning point. In Singapore, where 3,200 workers were retrenched in Q2 2025 (MOM), the reality is that layoffs happen even in a strong economy. The good news: there are clear, practical steps workers can take to stabilise their situation and prepare for a comeback.
Here’s what to do, immediately.
Before leaving, ensure you understand your entitlements. According to the Tripartite Advisory on Managing Excess Manpower, employers are encouraged to pay 2 weeks to 1 month of salary per year of service as retrenchment benefits.
Confirm payout details with HR in writing.
Clarify whether notice pay, annual leave encashment, and bonuses are included.
Check your CPF contributions and insurance benefits.
This step provides financial clarity before you move forward.
Getting re-employed quickly is easier when you’re plugged into the right channels. WSG offers:
Career advisory and job matching via MyCareersFuture.sg.
Career Conversion Programmes (PCPs) to reskill into growth sectors.
Career Trial placements with allowance support.
Walk into a WSG Career Centre or local CDC Jobs Hub to get started.
Reskilling is crucial, especially if you’re a mid-career worker. Singaporeans aged 25 and above already have SkillsFuture credits, while mid-career individuals (40–60) receive additional SkillsFuture Mid-Career Support credits.
Prioritise courses in healthcare, ICT, sustainability, and financial services, which are projected to grow.
Look at subsidised Workforce Skills Qualifications (WSQ) courses.
This ensures your skill set stays relevant in industries with hiring demand.
Even with retrenchment benefits, some may need additional buffers. Key schemes include:
ComCare Short-to-Medium-Term Assistance (SMTA): Cash support for families facing sudden income loss.
NTUC Care Fund (e-Vouchers): Relief for union members.
CPF Housing Loan Flexibility: Temporary relief if you struggle with HDB mortgage payments.
Apply early if you anticipate cash flow challenges — processing can take weeks.
While looking for a new role, consider:
Part-time or contract work for short-term income.
Career Trial programmes for structured re-entry.
Freelance or gig roles if aligned with your skills.
This helps preserve savings while giving you breathing space to make longer-term career decisions.
| Immediate Action | Why It Matters | Where to Go |
|---|---|---|
| Confirm benefits | Ensures payout accuracy | HR, MOM guidelines |
| Register with WSG | Fast-tracks re-employment | WSG/CDC centres |
| Use SkillsFuture | Keeps skills market-relevant | SkillsFuture.sg |
| Apply for aid | Provides cash flow support | ComCare, NTUC |
| Find interim work | Bridges income gaps | MyCareersFuture, gig portals |
1. Do employers have to pay retrenchment benefits?
Not legally, but MOM strongly encourages companies to follow tripartite guidelines.
2. Can foreigners in Singapore get retrenchment support?
Non-citizens are not eligible for ComCare or SkillsFuture, but may seek WSG career advisory.
3. How quickly should I apply for ComCare?
As soon as income loss occurs, especially if household savings are limited.
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