As an employer in Singapore, offering employee benefits can be an effective way to attract and retain top talent. Employee benefits not only show that you care about your employees’ well-being, but they also improve employee satisfaction, productivity, and loyalty.
In this guide, we will discuss the mandatory and non-mandatory employee benefits in Singapore that you should be aware of as an employer. Check out below!
8 Mandatory Employee Benefits in Singapore
The Singapore Employment Act mandates that employers provide certain benefits to their employees. Here are some of the mandatory employee benefits in Singapore:
1. Annual Leave
Under the Singapore Employment Act, employers are required to provide a minimum of seven days of annual leave to their employees who have worked for at least three months. Employees who have worked for more than one year are entitled to additional days of annual leave, as specified in their employment contract.
2. Sick Leave
Employers are required to provide paid sick leave to their employees under the Employment Act. The amount of sick leave entitlement varies depending on the employee’s length of service, with a maximum of 14 days of paid sick leave per year for employees who have worked for more than six months.
3. Hospitalisation Leave
Employees who have been hospitalised are entitled to paid hospitalisation leave under the Employment Act. The amount of hospitalisation leave entitlement depends on the length of hospitalisation and the employee’s length of service.
4. Maternity Leave
Female employees in Singapore are entitled to paid maternity leave under the Employment Act. The amount of maternity leave entitlement depends on the length of service and the number of children the employee has. Female employees are also entitled to childcare leave and extended maternity leave.
5. Paternity Leave
Male employees in Singapore are entitled to paid paternity leave under the Employment Act. The amount of paternity leave entitlement depends on the length of service and the number of children the employee has.
6. Singapore Central Provident Fund (CPF)
The Central Provident Fund (CPF) is a mandatory social security savings plan for employees in Singapore. Under the CPF, both the employer and employee are required to contribute a portion of the employee’s salary into the fund. The CPF contributions go towards retirement, healthcare, and home ownership.
7. Injury Compensation Insurance
Injury compensation insurance is a mandatory insurance policy that provides compensation to all employees who are injured or become ill as a result of their work. As an employer, you are required to purchase this insurance for all your employees who do manual work, including part-time and temporary employees.
8. Health Insurance
Although Singaporean Citizens and permanent residents can take advantage of MediSave, foreign employees do not have access to the same benefit. Only Work Permit and S Pass holder employees are entitled to receive healthcare or medical insurance benefits from their employers. For Employment Pass holders, health insurance is not mandatory.
Non-Mandatory Employee Benefits in Singapore
Apart from the mandatory benefits, employers in Singapore can also offer supplemental employee benefits to their employees. Here are some of the non-mandatory employee benefits in Singapore:
1. Flexible Working Hours
Flexible working hours are becoming increasingly popular in Singapore, with many companies offering their employees the option to work from home or adjust their working hours. This benefit can improve employee productivity and work-life balance, as employees can better manage their personal and professional commitments.
Read more: Should Your Employees Be Salaried or Hourly?
2. Additional Health Insurance
While not mandatory, additional health insurance is an essential benefit that many employers offer their employees. This additional insurance covers the cost of medical treatments, hospitalisation, and other healthcare-related expenses that are not covered by the mandatory health insurance.
Offering additional health insurance coverage can help attract and retain top talent, as it shows that you care about your employees’ well-being.
3. Annual Leave
Annual leave is a non-mandatory benefit that most employers offer to their employees. In Singapore, the statutory minimum annual leave is seven days per year, but many companies offer more. Annual leave allows employees to take time off work to rest and recharge, which can help improve their productivity and job satisfaction.
4. Training and Development
Offering training and development opportunities to employees is a non-mandatory benefit that can benefit both the employee and the employer. Training and development can help employees acquire new skills and knowledge, which can improve their job performance and help them progress in their careers. Employers benefit from offering training and development as it can improve employee retention and productivity.
As an employer in Singapore, it is important to ensure that you comply with the Employment Act’s mandatory employee benefits requirements, including the generation of accurate and compliant payslips.
StaffAny’s payslip generator is an excellent tool to simplify your payroll process, allowing you to generate payslips quickly and easily, in compliance with Singapore’s employment laws. Streamline your payroll process with StaffAny’s payslip generator today – try it now!