The Ultimate Guide To Employee Benefits In Singapore

In general, workplace or employee benefits in Singapore include statutory and voluntary benefits. Statutory benefits are mandatory, and your company offers voluntary benefits if they prefer.

Do you want to know more about employee benefits and what they include? Aniday is here to explain it to you. Read ahead!

What Are The Employee Workplace Benefits In Singapore?

You must incorporate ideal employee benefits packages to retain and attract talented employees. Staff benefits in Singapore are divided into two main categories: Statutory and Voluntary benefits.

What Are Statutory Employee Benefits In Singapore?

Structural benefits mandated by the government are outlined in the Employment Act. Aniday has summarized the key statutory benefits that companies must comply with to ensure employee rights are protected:

1. Central Provident Fund (CPF)

CPF in Singapore ensures financial security while ensuring contributions between employers and employees are necessary.

Employers should pay about 17% of the employee's basic salary to the CPF. However, a Singapore resident working overseas must pay tax rates up to 22% based on the provisions.

Alongside, as a part of the social security, your monthly CPF is deposited or divided for these three different accounts (may vary based on the yearly or regular updates by the government):

• The Ordinary account (2.5% - 3.5%) covers the retirement and housing requirements.
• The Special account (4%-5%) covers the retirement needs.
• The MediSave account (4%-5%) covers healthcare needs.

2. Leave Entitlements

Leave entitlements in Singapore comprise various categories based on the period of service. The leave entitlements are divided into various categories as listed below:

• Annual paid leave: Employees receive paid annual leave for about 7 to 14 days, depending on their service period. For example, full-time employees get 11 paid public holidays per year.
• Sick leave: Employees are entitled to up to 14 sick days and 60 days of leave based on their illness. In such instances, certified illness-related information must be given for reimbursement unless the employee falls ill on rest days, non-working days, or annual leaves.
• Childcare leave: Parents can take up to two or six days of paid childcare leave per year if their children are under seven years old.
• Maternity leave: A working mother obtains maternity benefits such as 16 weeks of Government-Paid Maternity Leave (GPML) if the child is a Singapore citizen. However, foreign workers get 12 weeks of maternity leave.
• Paternity leave: Like maternity leaves, fathers are entitled to two weeks of Government-Paid Paternity Leave (GPPL). However, their children should be born after January 2017.

3. Work Injury Compensation

If an employee falls ill due to work, it's important to provide them with appropriate compensation. Work Injury Compensation Insurance is essential to the employee benefits insurance program. Here are the types of compensations your employees can obtain from the Work Injury Compensation Act (WICA) as a result of the work injury or disease caused:

• Wages for the medical leave provided or light duty.
• Wages for medical expenses such as hospital bills, medication, and other charges.
• Lump sum compensation due to permanent incapacity, current incapacity, or cause of death.

4. Retirement Provisions

Once your employees retire at their retirement age of 62 to 63, they can get their retirement funds. These funds can be obtained as monthly payouts (obtain a monthly income) or withdrawals for immediate needs (can withdraw up to $5000 as required based on the retirement fund).

However, retirement funds can only be accessed after they are 55 years old.

5. Health Insurance

The Basic Healthcare Sum (BHS) is beneficial as it covers employees' healthcare expenses when they are old.

BHS's funding source is the MediSave account. This fund is adjusted via CPF every month to ensure every employee has enough to cover their medical needs as they age. However, once the CPF retires from work, the BHS funds will be fixed without further adjustments.

What Are The Voluntary Employee Benefits?

Voluntary benefits, offered at the company's discretion, are designed to attract and retain top talent. Here are the recommended voluntary benefits that Aniday suggests you may consider offering: 

1. Medical Insurance

Many companies provide group health insurance plans covering a couple of factors. They are listed below:

• Dental and vision care
• Health screenings
• Hospitalization
• Outpatient care
• Specialist consultations
• Wellness programs
• Other medical expenses

2. Skills Development

Many Singapore employers invest to enhance employee skills. Since upskilling benefits and enhances the employees, skill development initiatives are embraced widely. Here are a couple of skill development initiatives:

• Arrange workshops and seminars
• Career advancement.
• Contribute to further education
• Support to obtain certifications
• Training and development opportunities

3. Flexible Benefits

Certain companies provide additional flexible benefits to enhance one's health and well-being. The company decides on flexible benefits, and here are a few inclusions:

• Optical care
• Preventive care
• Gym memberships

4. Flexible Work Hours

If they prove themselves as a top-quality employees, the company may offer flexible working hours. Thus, maintaining a work-life balance would be effective for them. This opportunity is generally provided for progressive employees or remote teams. 

5. Flexible Work Arrangements

Employers in Singapore are embracing the rapid changes in providing flexible work arrangements. Even though it differs from one company to another, they may include the following:

• Telecommuting
• Flexible hours
• Compressed workweeks

6. Allowances For Work-From-Home

If they are a work-from-home employee, they may not have the essential equipment or infrastructure to set up their workstation. Thus, certain companies may provide them with a stipend to cover expenses such as an ergonomic chair, headphones, desk, and etc.

7. Wellness Programmes

For working professionals, mental health plays an integral role. While it is essential to preserve cognitive health awareness, employers also contribute towards it for their employees.

Employee Assistance Programmes (EAPs) are widely embraced as they help employers overcome the personal or work-related challenges they face. For example, confidential counseling and support services, workshops, or specific initiatives such as smoking cessation and weight management are carried out.

Final Thoughts

In conclusion, it is essential to know the statutory and voluntary staff benefits in Singapore. This will help you identify and use your benefits effectively.

If you need help understanding Singapore Employment laws, benefits, or Employer of Record (EOR) services, reach out to Aniday. You can contact us directly or get in touch with our Headhunting. We're here to help you with your requirements!

We hope this guide was helpful for you in understanding the employee benefits in Singapore at your fingertips!