A comprehensive guide to employee benefits in Singapore

Singapore, a thriving hub of business and innovation in Southeast Asia, boasts a robust employment landscape characterized by diverse opportunities and competitive compensation packages. Yet, attractive salaries are just one piece of the puzzle. 

Forward-thinking companies understand the importance of offering a comprehensive employee benefits package to attract and retain top talent. This guide will break down everything you need to know about employee benefits in Singapore, from mandatory entitlements to enticing perks.

Understanding the employee benefits landscape

Employee benefits can be broadly categorized into two groups: statutory benefits and voluntary benefits.

Statutory Benefits

These are benefits mandated by the government under the Employment Act. They act as a safety net for employees, ensuring basic financial security and well-being. Key statutory benefits include:

Paid Leave: Employees are entitled to annual leave, typically 7 to 14 days depending on their length of service. Additionally, employees are entitled to paid sick leave (up to 14 days) and hospitalization leave (up to 60 days) under specific conditions. 

Maternity/Paternity Leave: Mothers are entitled to either 16 weeks of Government-paid maternity leave or 12 weeks of maternity leave (depending on whether your child is a Singapore citizen and other criterias), while fathers are entitled to 2 weeks. Some companies offer extended leave beyond the statutory minimum to support new parents. The government has also extended their support for paternity leave up to 4 weeks, and will be making the additional two weeks of paternity leave mandatory in due course.  

Central Provident Fund (CPF): CPF underscores Singapore's commitment to long-term financial security and is integral to every employee's benefits package. This mandatory savings scheme requires contributions from both employers and employees and helps build retirement savings and provides funds for housing and healthcare needs. 

Work Injury Compensation: Employees have the right to compensation when they are injured or fall ill while working, so Work Injury Compensation Insurance is an integral part of every organisation’s employee benefits insurance programme. Under the Work Injury Compensation Act (WICA), employees should be able to claim the following types of compensation benefits:

• Medical leave wages for days they were issued with medical leave or light duty, due to the work injury or disease.
• Medical expenses, including hospital bills, medication and other charges, due to the work injury.
• Lump sum compensation for permanent incapacity, current incapacity or death.

Voluntary Benefits

These are benefits offered at the employer's discretion and can vary greatly depending on the company's size, industry, and budget. They are a key differentiator in attracting and retaining talent. Common benefits include:

Medical Insurance: Medical insurance is one of the most important part of any employee benefits programme. Most companies provide group health insurance plans that cover hospitalization, outpatient care, specialist consultations and other medical expenses. In addition to basic coverage, some employers offer additional perks such as dental and vision care, health screenings, and wellness programmes aimed at promoting employee well-being and preventive healthcare. Some may even extend coverage to dependants. 

Flexible Benefits:  Different employees have different needs, so it is increasingly important to offer some degree of flexibility in employee benefits and make it easy for employees to access the benefits they prefer. These are often in the form of extra categories that are uninsured, such as optical care, preventive care or gym memberships, which employees can claim for within a specific limit.

Flexible Work Arrangements:  The Asia Pacific workplace is changing rapidly. Recognizing the importance of work-life balance, employers in Singapore are increasingly embracing flexible work arrangements such as telecommuting, flexible hours, and compressed workweeks. In fact, flexibility of work is one of the key trends in the future of work that is shaping how employee benefits are designed.. Businesses that want to attract and retain talent should understand these future-of-work forces and use those insights to offer competitive employee benefits.

Skills Development: Investing in employee skills and competencies is essential for maintaining a competitive edge in Singapore's dynamic economy. Employers often provide training and development opportunities to enhance employee capabilities and foster career advancement. These may include workshops, seminars, certifications, and subsidized educational programmes aimed at upskilling employees and preparing them for future roles within the organization.

Wellness Programmes: Mental health awareness is gaining prominence everywhere, and its increasingly important for employers to build in proper benefits that align to employees’ needs in this area. A common benefit for this is an Employee Assistance Programme (EAP), which provides confidential counselling and support services to employees facing personal or work-related challenges. Other wellness benefits that can further enhance the overall well- being of your workforce include workshops, classes, and even targeted interventions like smoking cessation and weight management.

Designing the Right Benefits Package

There isn’t a one-size-fits-all employee benefits package. Every organisation will have different needs and of course, different budgets. How do you know if your benefits programme is up to market standard, addresses the needs of your employees, and yields benefits for the company? Here are some questions you should ask when reviewing your benefits:

An employee benefits programme is probably one of the most significant investments an organisation is likely to make. At Howden, our employee benefits team has designed countless bespoke programmes for businesses across industries. We have the deep expertise and experience to help you craft a holistic and sustainable employee benefits programme.