Singapore legislation
Regulation 3
of Variable Capital Companies (Maximum Amount Payable in Priority in Winding Up) Regulations 2026
Regulation 3
Prescribed amount where sub‑fund is wound up
Subregulation 1
Subject to paragraph (3), the prescribed amount for the purposes of section 203(2) of the IRDA as applied by section 33(2) of the VCC Act is the lower of the following for each employee:
the part of 5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the umbrella VCC of the sub‑fund, that has been allocated under section 29(3) of the VCC Act to the sub‑fund being wound up;
the amount F in paragraph (2).
Subregulation 2
The amount F mentioned in paragraph (1) is computed by the formulawhere —
G 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;
H is the part of 5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the umbrella VCC of the sub‑fund, that has been allocated to the sub‑fund under section 29(3) of the VCC Act; and
I is 5 months’ salary (whether for time or piecework) in respect of services rendered by the employee to the umbrella VCC of the sub‑fund.
Subregulation 3
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.