Singapore legislation
Regulation 2
of Variable Capital Companies (Maximum Amount Payable in Priority in Winding Up) Regulations 2026
Regulation 2
Prescribed amount where VCC is wound up
Subregulation 1
Subject to paragraph (2), the prescribed amount for the purposes of section 203(2) of the IRDA as applied by section 130 of the Variable Capital Companies Act 2018 (called in these Regulations the VCC Act), in the case of the winding up of a non‑umbrella VCC, is the lower of the following for each employee:
5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the VCC;
$13,000, or an amount that is 5 times the amount (if any) prescribed by the Minister charged with the responsibility for manpower under section 35(b) of the Employment Act 1968, whichever is the higher.
Subregulation 2
Where the amounts in paragraph (1)(a) and (b) are the same, the prescribed amount for each employee is equal to either of those amounts.
Subregulation 3
Subject to paragraph (4), the prescribed amount for the purposes of section 203(2) of the IRDA as applied by section 130 of the VCC Act, in the case of the winding up of an umbrella VCC, is the lower of the following for each employee:
5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the VCC, after deducting from it the total amount of that salary that has been allocated to the sub‑funds of the VCC under section 29(3) of the VCC Act;
the amount A in paragraph (4).
Subregulation 4
The amount A mentioned in paragraph (3) is computed by the formulawhere —
B is $13,000, or an amount that is 5 times the amount (if any) prescribed by the Minister charged with the responsibility for manpower under section 35(b) of the Employment Act 1968, whichever is the higher;
C is 5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the VCC, after deducting from it the total amount of that salary that has been allocated to the sub‑funds of the VCC under section 29(3) of the VCC Act; and
D is 5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the VCC.
Subregulation 5
Where the amounts in paragraph (3)(a) and (b) are the same, the prescribed amount for each employee is equal to either of those amounts.