These employees belonged to companies that were wound up
The Singapore government has distributed about SG$600,000 to 260 employees who did not receive salaries because of corporate liquidation, according to Manpower Minister Tan See Leng.
Tan said the fund was disbursed between 2023 and 2025 through the government's Short-Term Relief Fund, which grants financial assistance to eligible lower-income workers when their employers cannot pay their salary arrears due to business failure.
"We also provide workers who have lost their jobs with support to search for and take on new jobs with good longer-term prospects," Tan said.
"Local workers may tap on career matching services and training programmes offered by WSG, SSG and e2i, and may also receive temporary financial support under the SkillsFuture Jobseeker Support scheme."
Tan made the remarks in response to a question in Parliament that inquired how many workers received payouts from the Short-Term Relief Fund and how much was the total amount disbursed.
The inquiry also wanted to know how many workers had been affected by corporate liquidations and the total amount of unpaid wages.
"MOM does not track the total number of workers with unpaid wages due to corporate liquidations," Tan said.
Compulsory liquidations in Singapore
Based on a chart from the Ministry of Law, there were 392 compulsory liquidations (companies wound up) in 2025 in Singapore. These companies were ordered by the court to be wound up, typically because they could not pay their debts.
Tan said employees' claims on salaries are ranked first and above all other unsecured debts in the event of their employers winding 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," the minister said.
Measures are in place to ensure responsible business practices in such cases.
"The Ministry of Manpower investigates and takes action against employers who breach employment legislation when winding up, including those who wilfully do not pay salaries despite having the means to do so," Tan added.
