Employee Benefits in Singapore

Who Is Entitled to Employee Benefits In Singapore

In Singapore, entitlement to employee benefits primarily depends on the employee’s status, salary level, and nationality. Under the Employment Act, most employees—including full-time, part-time, and contract staff—are eligible for core statutory benefits, provided they work under a contract of service and meet minimum service thresholds, typically three months of continuous employment.

While Singapore citizens and permanent residents receive mandatory Central Provident Fund (CPF) contributions, foreign employees are usually excluded from CPF but may receive alternative retirement or housing allowances. Domestic workers, seafarers, and senior executives are not covered under certain parts of the Employment Act but are often protected through contractual terms and other legislation.

Overview of Employee Benefits In Singapore

Employee benefits in Singapore reflect a balance between structured legal obligations and a pro-business environment. Compared to countries with expansive welfare systems, Singapore’s statutory benefits are moderate, but they are bolstered by the compulsory CPF savings scheme and a culture of employer-led perks, especially in healthcare and learning. Benefits are used not only to stay compliant, but also to attract and retain talent in a competitive, skill-driven economy.

Mandatory Employee Benefits In Singapore

Mandatory benefits are legally required and form the core of any employee benefits package in Singapore. Here’s a comprehensive list of mandatory benefits in Singapore:

Central Provident Fund (CPF) Contributions

The CPF is a compulsory savings plan that supports retirement, housing, and healthcare. Employers must contribute a percentage of an employee’s monthly wage to CPF for Singapore citizens and permanent residents. Contribution rates vary by age and are updated periodically, so employers must stay informed to ensure compliance.

Statutory Paid Annual Leave

Employees who have completed at least three months of service are entitled to annual leave starting from seven days, increasing with each year of service. Employers must ensure proper leave tracking, pro-rating for new hires, and carry-over procedures where applicable.

Statutory Sick and Hospitalisation Leave

Employees are entitled to paid outpatient sick leave and separate hospitalisation leave after three months of service, provided they are certified by a doctor. Sick leave entitlements increase with length of service and must be paid at the standard salary rate.

Public Holidays

Singapore’s Employment Act grants employees paid leave on public holidays. If an employee is required to work on such a day, they must receive either an extra day’s salary or a substitute day off.

Maternity, Paternity and Childcare Related Leave

Singapore law provides various types of family leave including maternity leave, paternity leave, and childcare leave. Eligibility depends on the parent’s status and the citizenship of the child. Some schemes are government-paid, requiring employers to apply for reimbursement.

Work Injury Compensation Insurance

Employers must maintain work injury compensation insurance for manual workers and non-manual workers earning below certain thresholds. This coverage allows employees to claim compensation for work-related injuries without legal proceedings.

Supplemental Employee Benefits In Singapore

Supplemental benefits are not required by law, but can help you stand out as an employer and attract top talent. They include:

Private Medical Insurance Enhancements

Employers often provide private healthcare plans covering outpatient, inpatient, and specialist treatments. These plans are particularly important for expatriate staff or employees seeking shorter wait times and more comprehensive care than public schemes offer.

Dental and Vision Benefits

Dental and vision care are frequently offered as add-ons to standard medical plans or through reimbursement models. Providing these supports employee wellbeing and reduces long-term healthcare costs.

Additional Annual Leave and Time Off

Many employers enhance their benefits with extra leave options such as birthday leave or wellness days. This is especially popular in industries targeting younger or knowledge-based talent.

Flexible Benefits and Allowances

Flexi-benefit schemes give employees the autonomy to allocate a benefits budget to healthcare, learning, or lifestyle expenses. Employers must be mindful of tax reporting requirements for certain categories of flexible benefits.

Wellbeing and Wellness Programs

These initiatives can include subsidised gym memberships, counselling services, mental health days, or onsite wellness workshops. They demonstrate commitment to holistic employee health and support reduced absenteeism.

Training, Education and Learning Support

Employers increasingly offer study leave, course sponsorship, and SkillsFuture support. These benefits promote career growth and help align employee development with company goals.

Tax Implications of Employee Benefits in Singapore

Most cash compensation and many non-cash benefits are considered taxable income in Singapore. CPF contributions by the employer are not taxed for the employee, but other benefits in kind—like housing, transport, and certain flexible allowances—must be reported. Employers need to:

 
• Understand which benefits are tax-exempt vs. taxable
 
• Maintain clear records of benefits offered
 
• Report benefits accurately in annual income submissions to IRAS

Legal Considerations for Employee Benefits in Singapore

Employee benefits in Singapore are governed by several core laws: the Employment Act, CPF Act, Work Injury Compensation Act, and family leave legislation. These set baseline standards for benefits, eligibility, and employer obligations.

Non-compliance can lead to financial penalties, back payment obligations, or even prosecution. Employers may be subject to audits or inspections, particularly if employee complaints are lodged. Multinational employers must take care to align global policies with Singapore’s local laws.

Regular review of employment practices is recommended—at least annually or whenever major policy updates are issued by local authorities such as the Ministry of Manpower or CPF Board.

How Benefits Impact Employee Cost

Employee benefits add significantly to the total cost of employment in Singapore. CPF contributions, insurance premiums, and statutory leave create payroll obligations that employers must plan for. For Singaporean and PR employees, CPF alone is a major contributor to total compensation cost.

To manage costs effectively, many companies segment their benefits by employee type, benchmark against industry standards, and offer flexible benefit programs that balance cost control with employee satisfaction. Well-structured benefits can improve retention, reduce turnover, and boost productivity.

How Can Playroll Help with Benefits Management in Singapore?

Managing employee benefits across multiple countries can be complex, but it doesn’t have to be. Playroll simplifies the process by handling administrative tasks, ensuring compliance with local regulations, and providing access to tailored benefits packages in 180+ regions.

With everything managed through a single platform, companies can focus on supporting their teams  – wherever they are.

• Pick and choose from localized benefits packages to attract and retain global talent.
• Built-in compliance to stay ahead of evolving regulations.
• Manage leave, expenses, and more, through one intuitive dashboard.