Singapore disburses SG$600,000 to unpaid workers after company liquidations, minister says

The Singapore government has disbursed about SG$600,000 to 260 workers who were left unpaid after their employers entered liquidation, Manpower Minister Tan See Leng said in Parliament.

The payouts were made between 2023 and 2025 through the government’s Short-Term Relief Fund, which provides financial assistance to eligible lower-income workers when businesses fail and are unable to settle salary arrears.

Responding to a parliamentary question, Tan said the fund was designed to offer interim support to affected employees while they transition to new employment. He added that workers who lose their jobs due to business failure are also supported through job-matching services, training programmes and temporary financial aid.

“Local workers may tap on career matching services and training programmes offered by Workforce Singapore (WSG), SkillsFuture Singapore (SSG) and e2i, and may also receive temporary financial support under the SkillsFuture Jobseeker Support scheme,” Tan said.

The parliamentary inquiry sought details on how many workers had received payouts from the Short-Term Relief Fund, the total amount disbursed, and the scale of unpaid wages arising from corporate liquidations. 

While Tan provided figures on fund disbursements, he noted that the Ministry of Manpower (MOM) does not track the total number of workers affected by corporate liquidations or the overall amount of unpaid wages.

Data from the Ministry of Law shows that Singapore recorded 392 compulsory liquidations in 2025. Such cases involve companies being ordered by the courts to wind up, typically because they are unable to meet their debt obligations.

Tan stressed that employee salary claims take priority over all other unsecured debts when a company is wound up. “When businesses wind up, including preparing for and during liquidation proceedings, firms should act responsibly and ensure that workers’ salaries are paid on time to the best of their abilities,” he said.

He added that enforcement measures are in place to ensure responsible business conduct. MOM investigates and takes action against employers who breach employment laws during winding-up processes, including those who wilfully withhold salaries despite having the means to pay.

The government, Tan said, remains committed to protecting workers and supporting them through periods of job loss, particularly when business failures leave employees without their earned wages.