What is a Long Service Awards?
Long service awards represent a cornerstone of employee recognition programmes, acknowledging staff members who demonstrate sustained commitment and loyalty to an organisation. These awards celebrate tenure milestones, recognising the valuable contributions employees make over extended periods whilst fostering a culture of appreciation and retention.
The primary purpose of long service awards extends beyond simple recognition. They serve as tangible acknowledgements of an employee’s dedication, creating emotional connections between staff and their workplace. When implemented effectively, these programmes communicate that organisations value longevity and appreciate the institutional knowledge, skills, and relationships that long-tenured employees bring to the business.
Benefits for Organisations and Employees
For organisations, long service awards deliver substantial benefits through improved employee retention rates, as well-recognised employees are 45% less likely to leave within two years. These programmes also enhance employer branding, making organisations more attractive to prospective employees who value job security and career development opportunities.
Employee benefits are equally compelling. Long service awards provide career validation, confirming that years of hard work and commitment are noticed and appreciated. They create milestone moments that boost morale and job satisfaction whilst strengthening the psychological contract between employer and employee. Recipients often experience increased motivation and renewed enthusiasm for their roles.
Furthermore, these awards contribute to knowledge retention within organisations. Long-serving employees possess invaluable institutional memory, understanding company culture, processes, and relationships that cannot be easily replaced. By recognising and celebrating these individuals, organisations encourage knowledge sharing and mentoring, creating a more robust and resilient workforce.
Exploring Approach of Long Service Awards
Traditional Milestone Years
Long Service Awards usually correspond with milestones of work anniversaries, and each milestone often has an associated recognition level or award tier.
- 5 years anniversary / bronze equivalent
- 10 years / silver equivalent
- 15 years / gold equivalent
- 20 years / platinum equivalent
- 25 years and beyond (every additional 5 years) / prestige tier
Most organisations structure their long service awards around these standardised milestone years, beginning at five years and continuing in five-year intervals. Each milestone represents increasing levels of commitment and warrants progressively more substantial recognition.
The five-year bronze tier focuses on acknowledgement through modest awards such as certificates, plaque, or small gift vouchers. Ten-year silver tier recognition includes higher-value items like engraved pieces or curated gift selections with additional leave entitlements.
Fifteen-year gold tier awards feature premium items such as watches or luxury accessories, alongside experience-based rewards including weekend breaks or dining experiences. Twenty-year platinum tier achievements warrant substantial recognition through luxury items, extended travel packages, and enhanced benefit arrangements.
Twenty-five-year prestige tier recognition represents extraordinary loyalty, featuring highly personalised awards, significant experiences, and bespoke recognition ceremonies. This tiered approach ensures recognition scales appropriately with tenure length whilst providing clear progression that motivates continued service and allows effective budget management.
Public Sector vs. Private Sector Approaches
Public sector organisations typically implement more structured, uniform approaches with standardised awards across departments. Government agencies emphasise service to the community and public good, with awards often presented at formal ceremonies attended by senior officials. These programmes frequently offer generous time-off benefits, formal commendations, and inclusion in official publications. Awards often reflect public service values, incorporating civic symbols or references to community service. Additional benefits may include reserved parking spaces, special dining privileges, or access to exclusive facilities.
Private sector approaches tend to be more flexible and varied, allowing organisations to tailor programmes to their specific culture and industry. Technology companies might emphasise innovation and growth opportunities, whilst manufacturing firms may focus on safety achievements alongside tenure. Private sector programmes often incorporate more diverse award options, including luxury items, experience packages, or substantial monetary rewards.
Many private sector organisations implement more frequent interim recognitions, acknowledging achievements at two or three-year intervals to maintain engagement amongst younger employees. This approach reflects changing career patterns and expectations in competitive talent markets.
The key distinction lies in flexibility, public sector programmes prioritise consistency and public accountability, whilst private sector programmes emphasise customisation and competitive advantage in talent retention.
Also read: 13 Employee Benefits in Singapore: Statutory, Wellness & Beyond
Recognition Categories and Formats
Organisations use a variety of long service award formats to match employee preferences and workplace culture. The most effective programmes offer choice across three main categories, ensuring recognition feels personal and meaningful.
Physical Awards
Tangible mementos offer lasting reminders of achievement and pride.
- Certificates and plaques: formal documentation with quality printing and seals.
- Jewellery: pins, watches, rings as wearable symbols of accomplishment.
- Crystal/engraved items: elegant, personalised pieces for display.
- Custom merchandise: premium goods like leather items, tech accessories, or outdoor gear.
Monetary Recognition
Financial rewards provide flexibility and immediate value.
- Cash bonuses: flat or scaled amounts with instant impact.
- Gift cards: choice within curated retailers, dining, or experiences.
- Stock/shares: long-term investments tied to company success.
- Enhanced pensions: lasting benefits into retirement.
Experience-Based Awards
Memorable experiences and lifestyle benefits strengthen loyalty.
- Extra leave: valued time off for family and personal life.
- Travel/experience vouchers: getaways, dining, cultural or activity packages.
- Professional development: training, conferences, courses for growth.
- Flexible work arrangements: remote work or adjusted schedules for better balance.
Best Practices for Long Service Awards
Successful long service award programmes require thoughtful design and strategic implementation to maximise their impact on employee engagement and retention. These best practices help organisations create meaningful recognition experiences that truly celebrate employee loyalty whilst delivering measurable business results.
Personalise the Experience
Move beyond generic presentations to create personalised recognition moments that acknowledge individual contributions and achievements. Include specific examples of the recipient’s impact, mention their career journey, and involve colleagues or managers who can speak to their unique value. Personal touches transform routine presentations into memorable experiences.
Time Presentations Strategically
Present awards during significant company events, team meetings, or special ceremonies rather than casual handovers. Strategic timing amplifies the recognition impact whilst demonstrating organisational commitment to celebrating achievements.
Offer Meaningful Choice
Provide recipients with selection options within each award tier rather than predetermined gifts. Personal preferences vary significantly, and choice ensures awards feel relevant and appreciated. Consider offering catalogues with physical items, experiences, additional leave, or monetary options that allow recipients to select recognition that aligns with their current life circumstances and interests.
Integrate with Company Culture
Align award presentations and recognition messaging with existing company values and culture. Awards should feel authentic to the organisation’s identity rather than generic add-ons. Consider incorporating company history, values, or mission statements into recognition ceremonies to strengthen cultural connections.
Maintain Consistent Standards
Apply award criteria consistently across all employees regardless of department, location, or seniority level. Inconsistency undermines programme credibility and can create feelings of unfairness. Establish clear guidelines and train managers on proper recognition protocols to ensure every recipient receives equivalent treatment and appreciation.
Plan for Programme Evolution
Regularly review and update award options to reflect changing employee demographics, preferences, and market trends. What appealed to previous generations may not resonate with current employees. Conduct periodic surveys to understand recipient satisfaction and identify opportunities for programme enhancement and modernisation.
Also read: How To Improve Employee Engagement: Key Drivers & Strategy
Legal and Administrative Considerations
Understanding the legal and administrative requirements for long service awards is crucial for Singaporean companies to ensure compliance whilst maximising benefits for both the organisation and recipients. Proper planning helps avoid unexpected tax implications and administrative complications that can diminish programme effectiveness.
Are Long Service Awards Taxable in Singapore?
Long service awards in Singapore have specific tax exemptions based on their value and nature. According to IRAS guidelines, awards (both cash and non-cash) are not taxable if they are symbolic and represent a token of little or no commercial value. As a guide, awards not exceeding $200 are considered not substantial in value and therefore exempt from taxation.
However, if the award exceeds the $200 exemption threshold, the entire value becomes taxable, not just the excess amount. This means a $250 award would be fully taxable at $250, rather than only the $50 excess. The Inland Revenue Authority of Singapore treats awards above this threshold as taxable benefits-in-kind, subject to income tax at the recipient’s marginal tax rate.
Employers must include the full value of taxable long service awards (those exceeding $200) in employees’ Form IR8A submissions and ensure proper documentation for tax reporting purposes. Recipients should be informed about potential tax implications when awards exceed the exemption threshold to avoid unexpected liabilities during tax filing season. Companies can structure programmes to remain within the $200 exemption limit or clearly communicate tax implications for higher-value awards.
Do Long Service Awards Contribute to CPF?
CPF contributions have specific rules for long service awards depending on the structure and timing of the awards. Generally, CPF contributions are payable on cash awards given to employees in recognition of long service.
However, Singapore promotes employee loyalty through CPF exemptions for qualifying Long Service Awards (LSA). CPF contributions are not payable on LSAs given to employees with at least 5 years of service and subsequent LSAs for each 5-year period of service, up to the amount of the employee’s Ordinary Wages (OW) for the month in which the LSA is paid.
Key conditions for CPF exemption include: the employee must have at least 5 years of service, awards must follow 5-year intervals (5th, 10th, 15th year, etc.), and only the first LSA granted to each employee in each 5-year period qualifies for exemption. If multiple types of LSA are given to the same employee within a 5-year period, only the first award receives the exemption.
If the LSA exceeds the employee’s OW for that month, CPF contributions are payable on the excess amount above the OW. Additionally, if the employee has no OW payable in the month the LSA is given, CPF contributions are payable on the entire LSA amount.
Companies should carefully structure award timing and amounts to maximise CPF exemptions whilst ensuring compliance with the 5-year interval requirements and OW limitations for optimal tax efficiency.
Record Keeping and Documentation Requirements
Singaporean companies must maintain comprehensive records of all long service awards for tax reporting and audit purposes. Documentation should include recipient details, award values, dates of presentation, and justifications for any tax exemptions claimed. These records must be retained for at least five years as required by IRAS regulations.
Disclaimer: This section focuses specifically on Singapore’s legal and regulatory environment. Companies operating internationally or with employees in multiple jurisdictions should consult local legal counsel and tax professionals in each relevant country. Tax treatment, employment law requirements, and administrative obligations vary significantly across jurisdictions and may affect programme design and implementation for international operations.
Modern Trends in Employee Recognition
In today’s fast-moving job market, traditional long service awards tied to five or ten-year milestones risk feeling outdated. With shorter average tenures, especially among younger employees, waiting years to recognise contributions can miss the mark.
Organisations are increasingly shifting towards celebrating more frequent “mini-milestones”, such as two-year anniversaries or notable project achievements. These timely acknowledgements help maintain motivation and show employees that their efforts are valued in the present, not just in the distant future.
The nature of rewards is also evolving. While luxury items and trophies remain appreciated, many employees now place higher value on personalised and non-material incentives. These might include extra leave days, professional development opportunities, gift cards, or experiences aligned with personal interests. Such rewards speak directly to modern priorities like work-life balance, growth, and autonomy.
Most importantly, the effectiveness of recognition depends less on cost and more on authenticity. Even simple gestures like a heartfelt note from leadership or public acknowledgement can boost morale when they reflect genuine appreciation.
Transform Your Recognition Programme Now
Digital recognition platforms are revolutionising how organisations manage and deliver long service awards & employee recognition. These platforms automate milestone tracking, personalise rewards, and provide comprehensive analytics that help organisations measure programme effectiveness.
Modern digital solutions like CERRA Applause enable seamless nomination processes and reward distribution, making it easier than ever to organise comprehensive recognition programmes. Digital platforms offer flexibility in award selection and delivery, allowing recipients to choose from extensive catalogues of physical awards, experiences, and monetary options. This personalisation ensures that recognition resonates with individual preferences whilst maintaining programme structure and budget control.
Discover how CERRA Applause can streamline your long service awards programme with automated milestone tracking, personalised recognition delivery, and comprehensive analytics. Our digital platform makes it simple to organise nominations and distribute meaningful rewards that truly celebrate your employees’ dedication and commitment.
Book a demo today to see how we can help you create a long service awards programme that drives engagement, improves retention, and celebrates the valuable contributions of your long-serving employees.
