(updated 29 May 2020)
Many male Singaporeans have to serve up to 10 cycles of reservist duties throughout their working careers. Below is a guide on the procedures involved for claiming of Make-Up Pay.
Understanding NS Pay
Your NS Pay is made up of two components.
- Service Pay, which is equivalent to your full-time NS allowance, and depends on your rank and vocation.
- See https://blog.moneysmart.sg/career/national-service-singapore-nsf-pay-ranks/ for the recent salary increment announced on Mar 2, 2020.
- This amount will be pro-rated based on the duration of your reservist activity.
- Make-Up Pay, which is the difference between your civilian income loss and your Service Pay, for the duration of your reservist activity. No Make-Up Pay will be payable if your civilian income loss incurred is lower than your Service Pay for each reservist activity.
How you claim your Make-Up Pay is subject to the following employment statuses:
Those performing work under a contract of service where you are under the control of your employer. This includes directors registered with the Accounting and Corporate Regulatory Authority (ACRA). You are also considered employed while on internship.
For employers registered with the DIRECT Scheme, you are not required to submit anything. Your employer will continue paying you as per normal, and will claim reimbursement for your NS Pay from MINDEF/SPF/SCDF. If your employer does not submit your Make-Up Pay claim at least 14 days before your ORNS activity, it will be assumed that they are not under the DIRECT scheme. MINDEF will credit your Service Pay directly to you instead. Your employer may then recover the credited Service Pay from you.
For those not registered with the DIRECT Scheme, either you or your employer will need to initiate the Make-Up Pay claim process. Your Service Pay will be credited directly by MINDEF to you. If it is your responsibility, you will need to do this via Manage NSmen Payments on the NS Portal, before your employer can endorse your Make-Up Pay claim and submit it to MINDEF. You will not have to initiate the Make-Up Pay claim process if your employer initiates it for you. Your employer will deduct the Make-Up Pay amount from your salary – MINDEF will then credit your Make-Up Pay directly to you.
For those who perform work for others under a contract for service. You may be a sole-proprietor or a partner in a partnership, or work for yourself and are in the position to realise a business profit or loss. Your income is derived from the buying and selling of goods, or from providing professional or personal services.
There are 3 options for self-employed persons — choose the option that suits you best:
- Income Tax option: Based on the trade income in your Income Tax Notice of Assessment (NOA) for the year of your Operationally Ready National Service (ORNS) activity
- Average Income option: Based on the net self-employment income paid in the 6 months preceding your ORNS activity
- Replacement option: Based on the fees paid to stand-in doctors or bus and transport drivers engaged to cover your duties for the duration of your ORNS activity