Asinta’s report on benchmarking employee benefits in Singapore provides benefit managers the fundamentals of Singapore’s mandatory, and common, supplementary employee benefits. Typical benefit design and costs are included, as is information about setting up policies, onboarding and policy administration.
A sample of what’s inside…
Mandatory Benefit – The 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.
- The contributions of the employee and an employer depend on the age and income of the employee. Only the first S$6,000 of monthly wages are taken into consideration for the computation of CPF contributions.
- The contribution levels for those aged below 55, earning above S$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 S$750 per month and/or age 55 and above, are lower.
- During the core income earning years, the CPF contributions will be divided into three accounts, Ordinary account (to fund housing and retirement), Special (to fund retirement), Medisave (to fund basic healthcare).
- Once someone reaches 55, the Retirement Account is introduced. The statutory retirement age is 62, however employers are encouraged to offer re-employment up to the age of 67.