Singapore mandates a robust set of employee benefits, fostering a secure work environment and attracting a skilled workforce. Employers must comply with these provisions as outlined in the Employment Act.

Paid Leave

Singaporean employees are entitled to various forms of paid leave:

• Annual Leave: Employees accrue at least seven days of annual leave for every calendar year of work. The entitlement increases with longer service at the company. Employers must compensate employees at their usual salary rate during this period.
• Sick Leave: Employees are entitled to two days of paid sick leave per year. Additional unpaid sick leave may be granted based on the company's sick leave policy.
• Public Holidays: Singapore observes several public holidays throughout the year. Employees are entitled to paid time off on these designated days.

Central Provident Fund (CPF) Contributions

The Central Provident Fund (CPF) is a mandatory savings scheme for Singaporean citizens and Permanent Residents (PRs) employed in Singapore. Both employers and employees contribute a percentage of the employee's monthly salary to the CPF account:

• Employee Contribution Rate: The employee contributes between 12% and 37% of their monthly salary, depending on their age.
• Employer Contribution Rate: Employers contribute 17% of the employee's salary (capped at a specific monthly wage limit).

These contributions are channeled towards various CPF accounts that serve different purposes:

• Ordinary Account (OA): Used for housing and investment purposes.
• Special Account (SA): Used for retirement savings.
• Medisave Account (MA): Used for hospitalization and medical expenses.

Foreign employees are not mandated to contribute to CPF, but some employers may offer them voluntary CPF contribution schemes.

Paternity Leave

Fathers are entitled to two weeks of paid paternity leave to support their spouse after childbirth.

Additional Mandatory Benefits

• Workplace Safety and Health: Employers must provide a safe working environment and comply with workplace safety and health regulations.
• Work Injury Compensation: Employers are required to insure their employees under the Work Injury Compensation Act (WICA) to provide financial support in case of work-related injuries or illnesses.

In Singapore, employers can differentiate themselves by offering additional perks and programs to attract and retain top talent. Here's a look at some commonly offered optional employee benefits in Singapore:

Health and Wellness

• Private Health Insurance: Employers may offer private health insurance plans that provide broader coverage, including hospitalization in private hospitals, dental care, and vision care.
• Wellness Programs: These programs could include gym memberships, fitness classes, or health screenings.

Financial Security

• Flexible Work Arrangements: Offering flexible work options like remote work or compressed workweeks can improve employee satisfaction and work-life balance, potentially leading to increased productivity.
• Performance-Based Bonuses: Motivating employees with performance-based bonuses is a great way to reward high achievers and incentivize strong performance.

Work-Life Balance and Family Support

• Childcare Assistance: Employers may provide childcare assistance programs or subsidies to help employees manage childcare costs.
• Eldercare Assistance: Some employers offer eldercare benefits to support employees with eldercare responsibilities.
• Maternity Leave Top-Up: Employers may offer additional paid leave beyond the legal requirement to support new mothers.

Additional Perks

• Group Travel Insurance: Providing group travel insurance demonstrates employer care and offers financial protection for employees while traveling.
• Employee Discounts: Employers may negotiate discounts with various merchants (gyms, restaurants, entertainment) and extend these benefits to employees.
• Meal Vouchers or Subsidized Meals: Offering meal vouchers or subsidized meals at the workplace can be a convenient and cost-effective benefit for employees, especially in Singapore's fast-paced environment.

This list is not exhaustive, and the specific benefits offered can vary depending on the company size, industry, and overall compensation strategy.

Singapore's healthcare system is a multi-pronged approach, with mandatory contributions and the option for private coverage. The health insurance requirements for employees are primarily based on the Central Provident Fund (CPF) and optional private health insurance.

Mandatory Medisave Contributions

The Central Provident Fund (CPF) is a program that all Singaporean citizens and Permanent Residents (PRs) employed in Singapore are mandated to contribute to. This includes a portion directed towards the Medisave account. Medisave provides basic hospitalization coverage for inpatient stays in public hospitals, certain outpatient treatments, and some long-term care expenses. However, Medisave provides a safety net for basic medical needs but may not cover all expenses, especially for those seeking private hospitalization or more extensive treatment.

Optional Private Health Insurance

Private health insurance is offered by private insurance companies. It is not mandatory, but many employees choose to purchase private health insurance plans for broader coverage. Private plans typically offer a wider range of benefits compared to Medisave, including coverage for hospitalization in private hospitals, higher limits for inpatient and outpatient care, and additional benefits like dental care, vision care, and maternity coverage. Employees opting for private health insurance plans are responsible for paying monthly premiums.

While not mandatory, some employers in Singapore may offer to partially subsidize employee premiums for private health insurance plans to attract and retain talent. This system combines mandatory Medisave contributions with the option for private health insurance. Employees can choose the level of coverage that best suits their needs and budget.

In Singapore, retirement planning is prioritized through the Central Provident Fund (CPF) system. This is a mandatory savings scheme for Singaporean citizens and Permanent Residents (PRs) who are employed in the country.

Understanding the CPF System

The CPF system is managed by the Central Provident Fund Board (CPFB). Both employers and employees contribute a percentage of the employee's monthly salary to their CPF accounts. The employee contribution rate ranges between 12% and 37% of their monthly salary, while the employer contribution rate is 17% of the employee's salary, capped at a specific monthly wage limit.

CPF Accounts and Uses

The CPF savings are divided into three distinct accounts, each serving a specific purpose:

• Ordinary Account (OA): This account is used for housing and investment purposes. Funds in the OA account can be withdrawn upon reaching the Minimum Retirement Age (MRA).
• Special Account (SA): This account is primarily used for retirement savings. Funds in the SA are not accessible until reaching the MRA, with limited exceptions for investment and housing purposes.
• Medisave Account (MA): This account is used for hospitalization and medical expenses throughout your life.

It's important to note that foreign employees are not mandated to contribute to CPF.

Minimum Retirement Age (MRA)

The CPF Minimum Retirement Age (MRA) is gradually increasing. Currently, it's 62 for those born in 1962 or earlier, and is progressively rising to 65 for those born in 1970 and later.

CPF Retirement Products

Upon reaching the MRA, individuals have various options for utilizing their CPF savings for retirement income:

• Retirement Sum Scheme (RSS): This scheme allows full or partial withdrawal of your CPF savings upon reaching the MRA.
• Monthly Payout Schemes: In these schemes, CPF savings are invested and used to provide a monthly payout throughout retirement.

Voluntary Top-Ups for Enhanced Savings

• Additional CPF Contributions: Individuals can voluntarily contribute extra funds to their CPF accounts to boost their retirement savings.
• CPF Top-Up Grants: The Singapore government offers matching grants to incentivize additional CPF contributions from individuals and their families.

Understanding contribution rates, account purposes, and withdrawal options is crucial for employees to plan effectively for their financial security after retirement. Exploring voluntary top-ups and government grants can further enhance retirement savings within the CPF framework.