Health insurance is the most important benefit to Singapore based employees as medical costs locally are not only high, it continues to rise. Wellness and prevention related benefits are increasingly common, and are supported by the Government’s initiative to rein in the presence of chronic illness in the local society.
Galaxy Insurance Consultants
Singapore is renowned for the street food. There are street food vendors who have been awarded Michelin star status.
Employers in Singapore have been taking stock of the medical benefits they provide to their staff. Over the last decade, Singapore has experienced a high level of medical inflation. Reports shared in the local newspapers have floated estimates ranging from 8% to 12% for medical inflation in a country where the CPI is typically in the range of 1% to 2%. This has led to the need to review the benefit limits provided, as they may be obsolete relative to healthcare expenses.
Average Cost For Employer Sponsored Benefits
Singapore has very little regulation with respect to medical insurance benefits provided to employees with the exception of those hired on a work permit. This leads to significant disparity in the cost of medical benefits provided. The costs are typically multiplied by 3,5 times on average if the cover is extended to cover dependents. Apart from medical cover, it is quite common to provide life and personal accident covers to the tune of 24 – 36 months of basic monthly salary.
Advice To Employers
Define your company’s benefits philosophy and budgets well. Do keep in mind that medical inflation has led to significant cost increases in recent years.
There is a provident fund allocation for Singaporeans and Permanent Residents. However, there is no such provision for foreigners in Singapore. This often surprises expatriates who move to Singapore from countries which have a strong pension system.