Overview of the NSMen Service Pay
National Service is a duty to the Nation. When an Operationally-Ready National Serviceman (NSman) / SAFVC Volunteer (SV) attends training, he/she will receive Service Pay/SV Allowance for the entire period of the training, including Saturdays, Sundays and public holidays. While this cannot fully compensate the NSmen for their commitment and contribution towards NS, service pay serves to recognise each day of contribution made by NSmen.
Service Pay is equivalent to the NS allowance, which is dependent on the rank and the vocation the NSman is holding. If he is holding a combat vocation, his service pay also includes a combat allowance. It reflects the different responsibilities shouldered by the NSmen.
The NSman will be paid pro-rated service pay depending on the duration of his NS training. A minimum sum equivalent to half-day service pay will be paid for NS activity of 4 hours or less.
Make-up pay (MUP) is the difference between the civilian income loss suffered for the period of NS training and service pay for the NS training. Any NSman who is gainfully employed or self-employed can claim MUP if he suffers a loss in his civilian income as a result of having to attend NS training. Please note that Self-initiated medical screening / IPPT Preparatory Training is not claimable. No make-up pay will be payable if the civilian income loss suffered for the NS training is lower than the service pay for the NS training.
Regulations related to Make-Up Pay
a. Regulation 9 of the Enlistment (Loss of Salaries & Wages-Reimbursement) Regulation, 1978:
Authorised personnel from MINDEF may conduct visits to companies to verify the make-up pay claims. Employers/NSmen are requested to give access to the required documents related to the claim.
b. Regulation 10(2) of the Enlistment (Loss of Salaries & Wages-Reimbursement) Regulation, 1978:
If there is any dispute on the decision given on the make-up pay claim, the NSman must notify MINDEF/SPF/SCDF in writing, stating the grounds of the dispute and supported by the necessary documentary evidence, not later than 3 weeks from the date on which the decision on the claim is given.
c. Regulation 11 of the Enlistment (Loss of Salaries & Wages-Reimbursement) Regulation, 1978:
Any person who gives false or misleading information in respect of make-up pay claims shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000 or to imprisonment for a term not exceeding 12 months or to both.
As an employer, if you decide to adjust the employee’s civilian income due to the training, you are required to certify and submit your employee’s Make-Up Pay claim to MINDEF/SPF/SCDF. Make-Up Pay is the difference between the employee’s civilian income loss and service pay/SV allowance for the training. To speed up the process, you are encouraged to register with us to file the Make-Up Pay claim electronically.
About the Employer Payment eServices
This is a value added service offered to all employers. Once an employer registers for the Payment eService, the employer will be able to submit a Make-Up Pay claim online via individual or batch mode for NSmen/SV. On top, employers will be able to enquire on the status of the Make-Up Pay claims submitted for their employees. This service is also open to employers whom HR are situated overseas or outsourced to a payroll vendor.
Registration to the Employer Payment eServices
Employers are encouraged to register for this online eServices. Upon registration, users will be able to access the eServices on the next working day using their own SingPass. For employers who are stationed overseas, they will be able to log in using the NS Portal User ID and Password which will be mailed to them upon registration. Click here to view the Guide for Employer.
Note: For security reasons, the company’s account will be deactivated if your company has not submitted any make-up pay claim for the past 24 months.
Payment to Employer (DIRECT) Scheme
This is an optional scheme for employers. Once an employer opts in for this scheme, the employer will continue to pay his/her employee (NSman / SV) as per the company’s pay schedule when the employee attends NS/SV training with MINDEF/SPF/SCDF. This includes the full amount of Basic Salary and Fixed Allowance plus any earned Variable Allowance for the remaining days of work done in the month as well as the computed Variable Allowance loss due to the training. The employer then claims reimbursement of the employee’s civilian income (i.e. For NSman: Service Pay + Make-up pay; For SV: SV Allowance + Make-up Pay) for the period of the training from MINDEF/SPF/SCDF.
Submission of Make-up Pay Claims by DIRECT Employers
DIRECT employers will be required to submit their make-up pay claim online via the NS Portal. Manual submission via fax/hard-copy mail will not be accepted. Make-up Pay claims need to be submitted at least 14 calendar days before the start of the training. Otherwise, DIRECT employers will need to recover the Service Pay/SV Allowance component that may be paid out to the NSman/ SV before the claim submission by DIRECT employers.
Declaring Employee’s Remuneration to IRAS for DIRECT Scheme Employer
Employers must continue to include the amount of reimbursement paid by MINDEF/SPF/SCDF to the company in respect of each NSman/ SV for the training in the Form IR8A at the end of each year. Payment made by MINDEF/SPF/SCDF to the NSman/ SV directly should not be included by the employer in the Form IR8A.