Singapore

Mandatory employee benefits in Singapore

Central Provident Fund (CPF)

• This is a mandatory benefit in Singapore for Singapore Citizens (SCs) and Permanent Residents (PRs), and it is subject to legislation. Employers must comply with this legislation and auto-enroll eligible employees in their monthly Central Provident Fund (CPF) declarations.
• Currently, the contributions of the employee and the employer depend on the employee’s age and income. Only the first $6,800 monthly wages are considered for computing CPF contributions. It will move to $7,500 on January 1, 2025, and $8,000 on January 1, 2026. The contribution levels for those aged below 55, earning above $750 per month, are 37% of the basic monthly wage (employer contribution 17%, employee contribution 20%). This is the highest contribution bracket. The contribution levels for those earning less than $750 per month and/or aged 55 and above are lower.
• On January 1, 2021, CPF contribution increases began. Currently, 37% is applicable up to age 55. However, that will be extended to 60. Today, those aged 55 to 60 have a 29.5% contribution level (combined), those aged 60 to 65 contribute 20.5%, and a contribution level of 12.5% for those above 65. All these brackets will move upwards over time. By 2030, the full CPF rate will apply to individuals aged 55–60. This article explains the changes.
• During the core income-earning years, CPF contributions will be divided into three accounts: Ordinary Account (to fund housing and retirement), Special Account (to fund retirement), and Medisave Account (to fund basic healthcare). Once someone reaches 55, the Retirement Account is introduced.
• The Special Account (SA) for Central Provident Fund (CPF) members aged 55 and above was closed on January 19, 2025, with savings transferred to the Retirement Account (RA) up to the Full Retirement Sum (FRS), as announced by the CPF Board. Any remaining SA savings were moved to the Ordinary Account (OA).
• The statutory retirement age is 63. However, employers are encouraged to offer re-employment up to 68.

Annual Leave

• All employees are legally entitled to seven days of annual leave, which increases by one day each year of employment. It is common for employers to offer between 14 and 28 days of leave.

Maternity/Paternity Pay

• When an employee is pregnant, they are entitled to maternity leave benefits. After the child is born, the father is also awarded paternity leave benefits. Both parents also get shared parental leave.

Sick Leave

• As part of the Employment Act, employees are entitled to a minimum of 14 days of outpatient leave and 60 days of hospitalization leave.

Childcare Leave

Employees are entitled to six days of childcare leave for children under 7. The first three days are employer-sponsored, and days four to six are government-sponsored, up to a daily cap of $500, including CPF contributions. As the first 3 days are employer-sponsored, companies typically offer at least 3 days to employees with children who are not Singaporean Citizens. An extended childcare leave of 2 days is also provided to parents if their youngest child is between 7 and 12 years of age.

Supplemental employee benefits in Singapore

For employers offering flexible benefits, employees are given the choice to opt for less comprehensive insurance coverage. The savings are channelled into a Flexible Spending Account, where flex points are used for health and wellness (such as gym membership and health screenings), as well as lifestyle benefits (including personal mobile phone subscriptions, pet grooming, and holidays). A feasibility study for flex benefits can be undertaken for a fee.

Mobile Phone Allowance

• With the growing trend of employees using their personal mobile devices for work (BYOD), employers are increasingly offering a mobile phone allowance.

Season Parking

• It is common for senior management team members to be offered company-sponsored parking at the office’s location.

Voluntary Benefits

• Larger employers will often provide employees with a range of voluntary benefits that can be provided at discounted prices through the employer.

Flexible Spending Dollars

• Large employers offer flexible spending dollars, where employees are provided with a flexible spending budget for a wide range of items, from health screening to holidays.

Gym Membership

• Some larger employers and those seeking to attract the millennial generation will provide discounted membership to employees.

Study Benefits

• Singapore is actively encouraging its workforce to upgrade their skills and retrain as necessary.

Life Assurance

• Life Assurance is the second most common non-mandatory benefit in Singapore. Premiums vary according to age, occupation, and location. Costs are typically 0.1 to 0.5% of the sum insured.

Medical Insurance

• Costs will vary based on census data and benefit design.
• It is socially unacceptable to apply a deductible to a medical plan; however, co-payment options on outpatient benefits are becoming increasingly common, given the rising costs of healthcare.

Work Injury Compensation

• It is mandatory to cover all employees engaging in a manual occupation or earning a monthly salary of $2,600 or less.
• While it is not mandatory to cover employees earning above $2,600 who engage in a non-manual occupation, most employers would cover it anyway as they carry the legal liability.

Dental

• Dental benefits are commonly provided by Multinational Corporations (MNCs). With the ongoing battle for talent, small to medium enterprises (SME) have started providing this benefit to attract the necessary talent.

Employee Assistance Program

• EAP is usually included in an international medical plan. There was very little importance provided in this respect until recently.

Employee Perks in Singapore

Holidays, gym memberships, and other wellness benefits

• While the benefits can be easily replaced with a higher salary, providing them as benefits often demonstrates to employees the organization’s dynamic nature.

Additional Paid-Leave

• The millennials take this into serious consideration when accepting a job offer. The mandatory leave is seven days annually; however, most companies start at 14 days. The trend is moving towards 16 to 18 days as a base leave requirement.

Subsidized Gym Memberships

• Although some large employers may have gym facilities on-site, most partner with a local gym or offer discounted gym memberships through a third-party benefits vendor.

Educational Support

• Financial assistance for job-related qualifications and additional paid study/leave days may be provided. It is common to award the day before and on the day of the exam as study leave days.

Onsite Wellness Initiatives

• Includes massages, mindfulness classes, fitness, and cooking demonstrations. Insurers may arrange these for larger employers.

Financial Wellness

• On-site financial education for employees, particularly around the importance of adequate retirement planning.

Taxi and dinner reimbursements

• Work hours can be pretty long in Singapore, and it is quite usual for employers to reimburse the costs of dinner and transport when an employee works more than three hours of overtime on a given day. Overtime pay is not mandatory for employees earning less than $2,500 monthly.

Others

• Family day, annual dinner and dance, dine with family (employees leave 1 to 2 hours early)

This information about employee benefits in Singapore is provided by Galaxy Insurance Consultants, Asinta’s employee benefits consulting partner in Singapore.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.