Employee benefits go beyond just salary, they represent the total value an organisation offers to its workforce. These benefits may include healthcare coverage, retirement plans, paid leave, wellness programs, insurance, training subsidies, and even flexible work arrangements. When thoughtfully designed, a benefits package not only meets employees’ practical needs but also signals the company’s commitment to their well-being.
The importance of employee benefits cannot be overstated, especially in a competitive talent market like Singapore. With an increasingly skilled and mobile workforce, job seekers are evaluating potential employers not just based on remuneration but also on the quality of benefits provided. In sectors such as technology, finance, and professional services, where talent scarcity is a recurring challenge, a robust benefits offering can be a decisive differentiator.
Moreover, employee benefits are closely tied to both retention and talent acquisition. A WTW 2024 Global Benefits Attitudes Survey found that:
- 49% of employees chose their current employers due to their benefit packages
- 54% of employees stayed with their employers because of benefits
- 40% said they would leave their employers for better benefits at a new job, even without a change in salary
In this context, benefits are more than just add-ons, they’re strategic tools for enhancing employer brand and reducing costly turnover.
Employee satisfaction and productivity are also strongly influenced by benefit quality. When individuals feel that their physical, mental, and financial well-being are supported by their employer, they are more likely to be engaged, motivated, and committed to delivering high performance. For instance, employees with access to wellness programs and sufficient leave entitlements tend to take fewer sick days and report lower levels of burnout. Ultimately, benefits create a positive work environment that fuels organisational success.
In this article, we explore the statutory benefits provided under Singapore’s Employment Act, as well as the additional benefits and emerging trends that are essential for attracting and retaining top talent in today’s competitive job market.
Statutory Benefits Under Singapore’s Employment Act
In Singapore, employee benefits are governed by a clear legal structure, primarily overseen by the Ministry of Manpower (MOM). The country’s employment landscape balances flexibility for employers with protection for employees through mandatory requirements and regulatory guidelines.
At the core of the framework is the Employment Act, which is Singapore’s main labor law. It covers all employees, local or foreign, who are under a contract of service, except for seafarers, domestic workers, and government employees. Here are the statutory benefits under the Act:
1. Annual Leave
Employees who have completed at least three months of service are entitled to paid annual leave, starting from 7 days in the first year and increasing by one additional day for every year of continuous service, up to a cap of 14 days. This entitlement must be pro-rated if the employee has worked less than a full year. Employers cannot arbitrarily forfeit unused leave, except under specified conditions such as dismissal for misconduct.
2. Sick Leave and Hospitalisation Leave
Employees are entitled to paid sick leave once they have completed at least three months of service, and upon certification by a registered medical practitioner. The entitlement is:
- 14 days of outpatient sick leave
- 60 days of hospitalisation leave, inclusive of the 14 outpatient days
This ensures that employees have adequate time to recover from illnesses without the fear of income loss, and helps prevent presenteeism, which can negatively affect workplace health and productivity.
3. Public Holidays
Employees are entitled to 11 paid public holidays each year. If an employee is required to work on a public holiday, the employer must either:
- Provide an extra day’s salary at the basic rate of pay, in addition to the gross rate of pay for that day, or
- Grant a substitute day off.
4. Maternity Leave
Working mothers who are Singapore citizens are entitled to up to 16 weeks of Government-Paid Maternity Leave if the child is a Singapore citizen and the mother has served her employer for at least 3 months before the birth. For non-citizens or those not meeting criteria, statutory maternity leave is 12 weeks.
The first 8 weeks must be taken continuously, and the remaining weeks can be taken flexibly within 12 months of the child’s birth (subject to employer agreement).
5. Paternity Leave
Working fathers who are legally married to the child’s mother and meet eligibility criteria are entitled to 2 weeks of Government-Paid Paternity Leave. This can be taken in a continuous block or flexibly within 12 months of the child’s birth.
6. Childcare and Extended Childcare Leave
Eligible working parents are also entitled to:
- 6 days of paid childcare leave per year (if the child is below 7 years old and a Singapore citizen)
- 2 days of extended childcare leave per year (for children aged 7–12)
These leave schemes support work-life balance and reflect Singapore’s broader family-friendly employment policies.
7. Central Provident Fund (CPF) Contributions
While CPF is not governed by the Employment Act, it is a cornerstone of statutory employee benefits in Singapore. Both employers and employees are required to contribute a percentage of monthly wages into CPF accounts. The funds can be used for retirement, healthcare (through MediSave), and housing.
The CPF rates vary based on age group and wage levels, and non-compliance by employers can result in significant penalties.
8. Other Leave Entitlements
The Employment Act also provides for:
- Adoption leave: Up to 12 weeks for eligible adoptive mothers.
- Unpaid infant care leave: 6 days per year per parent for children under 2 years old.
- Paid compassionate leave is not mandated by law but commonly granted by many employers as part of internal policy.
Statutory benefits form the foundation of employee rights in Singapore and help create a predictable and fair working environment for both employers and staff. A deep understanding of the statutory baseline is essential, as any benefit enhancements must sit atop a compliant and legally sound structure.
Additional Benefits and Emerging Trends in Singapore
While statutory benefits form the baseline, many employers in Singapore go further by offering non-statutory or additional benefits to remain competitive, especially in talent-driven industries. These offerings reflect not only market trends but also the company’s values and commitment to holistic employee care.
In a job market where professionals are increasingly discerning, especially post-pandemic, non-monetary benefits often carry significant weight in influencing employment decisions and long-term engagement.
1. Healthcare and Insurance
Beyond mandatory MediShield or CPF MediSave contributions, many employers provide comprehensive private medical insurance, including:
- Outpatient GP and specialist visits
- Hospitalisation coverage
- Dental plans
- Mental health coverage
Group insurance plans are now expected in most mid-to-large organisations, and employers that include mental wellness services—such as access to therapists or digital counseling platforms—are seen as forward-thinking and supportive.
2. Flexible Work Arrangements (FWAs)
A major shift accelerated by COVID-19, flexibility is now a baseline expectation for many professionals. In Singapore, MOM actively encourages the adoption of FWAs through initiatives like the Tripartite Standard on Flexible Work Arrangements.
Common flexible benefits include:
- Remote or hybrid work options
- Flexi-hours or compressed work weeks
- Time-off in lieu policies
Employers that implement FWAs are not only perceived as more progressive but also enjoy improved employee satisfaction, retention, and lower absenteeism.
3. Learning and Development (L&D)
Forward-looking companies are also investing in skills development as a benefit. This includes:
- Subsidised courses and certifications
- Annual L&D budgets per employee
- Access to learning platforms like LinkedIn Learning, Coursera, or Udemy
- Structured career development pathways
These initiatives signal a long-term commitment to employee growth, which is especially attractive to younger professionals focused on career progression.
4. Employee Wellness Programs
Wellness has moved beyond gym memberships. Singaporean employers are increasingly embracing holistic wellness strategies, covering:
- Physical wellness: on-site fitness classes, ergonomic workstations
- Mental wellness: EAPs, mindfulness apps, burnout prevention talks
- Financial wellness: retirement planning workshops, financial advisory services
- Social wellness: team-building activities, interest clubs, volunteering opportunities
Companies that take a proactive approach to employee wellness often see measurable improvements in morale, engagement, and long-term productivity. A leading solution in this space is CERRA Wellness by Rewardz, which empowers organisations to promote healthy habits through gamified challenges, digital rewards, and data-driven insights—making wellbeing an integral part of workplace culture.
5. Rewards and Recognition Systems
Modern organisations understand that compensation is not the only motivator. Strategic rewards systems are now integral to HR and employee experience strategies. These systems aim to:
- Recognise achievements and milestones
- Encourage value-aligned behaviours
- Foster peer-to-peer appreciation
Popular approaches include:
- Point-based platforms where employees can earn and redeem rewards
- Digital shout-outs or badges for outstanding work
- Quarterly or annual awards for performance or innovation
- Celebrating work anniversaries or personal milestones (e.g. birthdays)
Recognition solutions like CERRA Applause by Rewardz are gaining strong traction in Singapore’s millennial-driven and digitally savvy workforce. These solutions make it easy for companies to foster a culture of appreciation through instant, peer-to-peer recognition and gamified rewards. By making recognition visible and timely, CERRA Applause helps reinforce company values and drive positive behaviour across teams at scale.
Final Thoughts
Being compliant with the Employment Act is the first and most essential step for any employer in Singapore. It ensures fairness and legal protection for both the company and its employees. However, stopping at compliance is no longer enough. Today’s workforce expects more. Employers need to go beyond the basics and offer benefits that reflect modern needs and lifestyles.
This means designing a well-rounded benefits strategy that includes flexible work options, holistic wellness programs, continuous learning support, and a strong rewards and recognition culture. These additional benefits are not just perks, they are tools to improve retention, boost morale, and position your company as an employer of choice.
If you’re looking to elevate your employee experience and offer a more personalised and flexible benefits system, consider exploring CERRA Flex by Rewardz. This digital solution enables you to create a customisable benefits experience where employees can choose what matters most to them—from wellness to lifestyle perks. CERRA Flex helps you stay competitive while meeting the diverse needs of a modern workforce. Ready to see it in action? Book a demo and discover how CERRA Flex can work for your team!
