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 an employer depend on the age and income of the employee. 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, is 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 monthly and/or age 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 those aged 55 – 60. This article explains the changes.
• During the core income-earning years, the CPF contributions will be divided into 3 accounts: Ordinary account (to fund housing and retirement), Special (to fund retirement), and Medisave (to fund basic healthcare). Once someone reaches 55, the Retirement Account is introduced.
• 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 that increases each year of employment. It is common for employers to offer a minimum of 14 days and a maximum of 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 cap of $500 a day, 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. Extended childcare leave of 2 days is also provided to parents if their youngest child is between 7 to 12 years of age.

Supplemental employee benefits in Singapore

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 constantly upgrade its skills and retrain if 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 on a medical plan, however, co-payment options on outpatient benefits are becoming increasingly common given healthcare costs.

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 (MNC). 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 easily be replaced with a higher salary, providing them as benefits often illustrate 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 membership 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 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

• Onsite 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.