Retail PWM 2025–26: Pay Floors, Job Ladders & a 10-Step Compliance Checklist
12 Sep 2025
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Singapore's workplace mental health landscape has reached a critical turning point. The numbers paint a stark picture: 61% of employees report experiencing burnout, with younger workers bearing the heaviest burden. Yet despite years of awareness campaigns and wellness initiatives, these figures have barely moved since 2022.
What has changed dramatically is the legal environment. The Workplace Fairness Act, passed in January 2025, now classifies mental health conditions as a protected characteristic—placing new obligations on employers and creating new rights for employees. With enforcement expected in 2026-2027, organisations can no longer treat mental wellbeing as a "nice-to-have" corporate perk.
This comprehensive guide explores the current state of workplace mental health in Singapore, what the new legislation means for employers, and practical strategies that deliver measurable results. Whether you're building a mental health programme from scratch or strengthening existing initiatives, the time to act is now.
For time-pressed HR leaders and business executives, here are the essential takeaways from this article:
The data tells an uncomfortable story. According to Employment Hero's 2024 Wellness at Work Report, which surveyed 1,018 Singapore employees, 61% reported feeling burnt out in the past three months. This represents only a marginal improvement from 62% in 2022, despite increased corporate attention to mental wellness.
What makes these figures particularly concerning is their consistency across multiple studies. The Ministry of Manpower's online assessment tool found roughly one in three Singaporean workers experienced work-related stress or burnout in 2024. Meanwhile, Gallup's State of the Workplace 2025 report ranked Singapore as having the second-lowest employee engagement in Southeast Asia, with 43% of employees reporting burnout symptoms.
Burnout does not affect all workers equally. The Employment Hero research reveals a stark generational pattern. Gen Z employees report the highest burnout rates at 68%, followed by Millennials at 65%, Gen X at 54%, and Baby Boomers at 36%. The ManpowerGroup Global Talent Barometer for Singapore (June 2025) confirms this pattern, finding that Gen Z reports the highest daily stress across all generations at 62%.
This generational divide has significant implications for employers. As Gen Z and Millennials now comprise the majority of the workforce, organisations failing to address their mental health needs risk losing their largest talent pool. According to Deloitte's 2024 Gen Z and Millennial Survey, about a third of Gen Zs (35%) and millennials (27%) in Singapore report feeling stressed all or most of the time.
Beyond burnout, chronic stress pervades Singapore workplaces. The Employment Hero report found that 39% of employees feel stressed at work a few days per week, while 36% experience stress a few days per month. For Gen Z workers, the picture is even bleaker—58% report feeling stressed at least a few days each week.
The primary driver? The cost-of-living crisis, cited by 27% of respondents. Combined with higher GST rates and ongoing inflation, financial pressures compound work-related stress, creating a perfect storm for mental health challenges.
For organisations still viewing mental health as purely an employee welfare concern, the financial data demands attention. A joint study by Duke-NUS Medical School and the Institute of Mental Health, reported in The Straits Times in November 2024, found that anxiety and depression alone cost Singapore nearly S$16 billion annually in lost productivity.
This figure encompasses both absenteeism (employees missing work) and presenteeism (employees present but underperforming due to mental health challenges). International research provides additional context: unscheduled absences cost approximately USD $3,600 per year for each hourly worker and USD $2,660 for salaried employees.
The business case for investing in mental health is increasingly well-documented. Multiple studies suggest returns of $3 to $6 for every $1 spent on comprehensive mental health initiatives. Mental health screening programmes specifically have been shown to deliver returns of £6.30 for every £1 invested.
A 2017 study by the National Council of Social Service (NCSS) found that workplace adjustments to support employees with mental health conditions resulted in a 3.3% improvement in productivity. When scaled across an organisation, even modest productivity gains translate to substantial financial benefits.
Despite the clear business case, significant gaps remain in employer support. The Employment Hero research found that only 45% of Singapore employees have access to confidential counselling through their employer. A TELUS Health survey revealed an even starker picture: 52% of workers reported that their workplaces did not provide mental health programmes such as confidential counselling, coaching, or wellbeing services.
The Milieu 2023 report on HR professionals themselves—the very people responsible for implementing these programmes—found that 75% experience burnout at least once per month. When HR teams are overwhelmed, mental health initiatives often receive inadequate attention and resources.
The Workplace Fairness Act (WFA), passed by Singapore's Parliament on 8 January 2025, represents the most significant change to employment law in decades. For the first time, Singapore has enacted legislation that explicitly prohibits workplace discrimination on specific grounds, including mental health conditions.
Under the WFA, employers are prohibited from discriminating against employees based on 11 protected characteristics:
Notably, mental health condition is listed as a standalone protected characteristic, separate from disability—a distinction that reflects growing recognition of mental health as a distinct employment concern.
The WFA initially applies to employers with 25 or more employees. This threshold will be reviewed in five years, with potential expansion to smaller businesses. The phased implementation gives smaller organisations time to develop compliant internal policies and procedures.
The legislation covers all stages of employment:
<div style="margin: 2rem 0; padding: 1.5rem; border-left: 4px solid #0054a6; background-color: #f1f5f9; border-radius: 0 8px 8px 0;"><h3 style="margin-top: 0; color: #0054a6; font-size: 1.25rem;">Important: Job Advertisement Requirements</h3><p style="margin-bottom: 0; line-height: 1.6;">The WFA prohibits job advertisements that state preferences based on protected characteristics, including mental health status. Phrases like "must be mentally resilient" or "ability to handle high pressure environments" may be scrutinised if they could be interpreted as discriminatory. Focus advertisements on genuine job requirements, specific skills, and qualifications.</p></div>
One of the most significant practical requirements under the WFA is the mandatory establishment of written grievance handling procedures. Employers must develop and communicate processes that commit to:
This requirement fundamentally changes how mental health discrimination complaints must be handled. Informal resolution is no longer sufficient—documented processes with clear accountability are now legally required.
The WFA introduces calibrated enforcement measures based on the severity of breaches:
Low severity breaches may result in corrective orders from the Ministry of Manpower (MOM), such as requirements to review hiring processes or attend corrective workshops.
Moderate severity breaches can attract administrative penalties of up to several thousand dollars, along with potential work pass curtailment.
High severity breaches may be prosecuted in court, with civil penalties reaching up to S$50,000 for first serious breaches and S$250,000 for subsequent breaches. Both the company and individual decision-makers can be held jointly liable.
Enforcement is expected to begin in 2026 or 2027, following the passage of a second bill covering claims procedures and technical details.
With regulatory requirements clarifying and the business case established, employers must now focus on implementation. The most effective mental health strategies operate at three levels: individual support, team and manager capability, and organisational culture change.
The foundation of any workplace mental health programme is accessible, confidential support for employees experiencing difficulties. Key components include:
Employee Assistance Programmes (EAPs)
EAPs provide professional counselling and support services, typically through external providers to ensure confidentiality. Research indicates that effective EAPs can reduce sick leave by 33%, lost time by 40%, and work-related stress by 65%. Singapore has numerous qualified EAP providers, including ThoughtFull, EMCC, Safe Space, and the Singapore Counselling Centre.
When selecting an EAP provider, consider:
Mental Health Resources and Self-Help Tools
Not every employee requires clinical intervention. Providing access to mental wellness apps, stress management resources, and educational materials helps employees manage everyday challenges before they escalate. The Health Promotion Board's Workplace Outreach Wellness (WOW) programme offers resources that employers can leverage.
Line managers play a crucial role in employee mental health. They are often the first to notice changes in employee behaviour and the primary point of contact for workplace concerns. Yet many managers feel unprepared to handle mental health conversations.
Training Essentials for Managers
Effective manager training should cover:
The Tripartite Advisory on Mental Well-Being at Workplaces recommends that supervisors receive specific training on supporting employees' mental wellness, including understanding common mental health conditions and appropriate workplace responses.
Team-Level Interventions
Mental health cannot be addressed solely through individual support. Team dynamics, workload distribution, and communication patterns significantly impact wellbeing. Consider implementing:
Sustainable mental health improvement requires embedding wellbeing into organisational culture and policy. This goes beyond programmes to address root causes of workplace stress.
Flexible Work Arrangements
The Tripartite Guidelines on Flexible Work Arrangement Requests, which took effect in December 2024, encourage employers to properly consider flexible work requests. For mental health, flexibility can be crucial—allowing employees to manage appointments, pace their work, or work during their most productive hours.
Workload Management Policies
Many organisations inadvertently create burnout through unrealistic expectations, constant urgency, and insufficient staffing. Review policies around:
Anti-Stigma Initiatives
Despite progress, stigma remains a significant barrier to seeking help. In Singapore, cultural factors can compound reluctance to discuss mental health openly. Effective anti-stigma initiatives include:
Mental health challenges vary significantly across industries, requiring tailored approaches. Understanding sector-specific stressors helps employers design more effective interventions.
Healthcare workers face uniquely intense pressures. Research from 2022 found that 77.9% of mental health professionals in Singapore met burnout thresholds—a sobering statistic for the very people treating others' mental health conditions. Long hours, emotional demands, and staffing shortages compound to create exceptionally challenging work environments.
Healthcare employers should consider:
The financial sector reports burnout rates of 17%, higher than the 12% average across other sectors. Performance pressure, long hours, and high-stakes decision-making characterise much of the industry.
Effective strategies include:
Tech workers often face unique challenges including rapid change, continuous learning demands, and cultures that can glorify overwork. Remote and hybrid work arrangements, while offering flexibility, can blur work-life boundaries.
Consider implementing:
For employers seeking to strengthen their mental health approach before WFA enforcement begins, here are prioritised actions:
Effective mental health programmes require ongoing measurement and refinement. Track these metrics to assess programme effectiveness:
Employee Survey Metrics
Utilisation Metrics
Business Impact Metrics
Compliance Metrics
Regular reporting to leadership keeps mental health on the agenda and demonstrates return on investment.
As enforcement of the Workplace Fairness Act approaches, some employers may view mental health initiatives primarily through a compliance lens. However, organisations that genuinely commit to employee wellbeing will find it becomes a competitive advantage in talent attraction and retention.
Research consistently shows that employees increasingly prioritise mental health support when evaluating employers. Deloitte's Gen Z and Millennial Survey found that work-life balance is the top priority for both generations when choosing an employer. Organisations known for supporting employee wellbeing will attract talent that others struggle to recruit.
Moreover, the productivity benefits compound over time. Teams with strong mental health support demonstrate higher engagement, better collaboration, and more innovation. In competitive industries, these advantages translate directly to business performance.
Singapore's workplace mental health landscape is at an inflection point. The persistent burnout crisis, affecting 61% of employees, can no longer be dismissed as an inevitable cost of success. The Workplace Fairness Act has elevated mental health from a discretionary benefit to a legal obligation, with real consequences for non-compliance.
Yet the most compelling case for action remains the human and business case: employees who feel supported perform better, stay longer, and contribute more meaningfully to organisational success. The return on investment—$3 to $6 for every dollar spent—makes mental health one of the highest-value investments an employer can make.
The path forward requires action at every level: individual support services, manager capability building, and genuine culture change. It requires honest assessment of current gaps and committed investment in sustainable solutions. Most importantly, it requires leadership that genuinely believes employee wellbeing and business success are not competing priorities, but complementary goals.
The organisations that thrive in 2026 and beyond will be those that moved beyond crisis management to strategic commitment. The question for employers is not whether to act, but how quickly and comprehensively they can transform their approach.
This article draws on multiple research sources to present a comprehensive picture of workplace mental health in Singapore:
All statistics are sourced from publicly available reports and verified through multiple sources where possible. Data is current as of publication date.