Singapore legislation

Section 31

of Employment Act 1968

Section 31

Recovery of advances and loans

Amended by26/201326/2013

(1)

The recovery of an advance of money made to an employee before the commencement of a contract of service is to begin from the first payment of salary in respect of a completed salary period, but no recovery may be made of any such advance made for travelling expenses.

(2)

Advances may be recovered in instalments by deductions from salary spread over not more than 12 months.

(3)

An instalment under subsection (2) must not exceed one‑quarter (or such other proportion prescribed in substitution by the Minister) of the salary due for the salary period in respect of which the deduction is made.

Amended by26/2013

(4)

Loans may be recovered in instalments by deductions from salary.

(5)

An instalment under subsection (4) must not exceed one‑quarter (or such other proportion prescribed in substitution by the Minister) of the salary due for the salary period in respect of which the deduction is made.

Amended by26/2013