Employee Benefits in Singapore: A Complete Guide for Employers

Singapore’s economy continues to grow steadily, with a 3.9% year-over-year increase in Q1 2025, slightly exceeding its target of 3.8%. Key sectors driving this growth include wholesale, technology, and finance. A strong economy has strengthened the job market, but the local talent pool remains relatively small compared to regions like North America and Europe.

For companies looking to attract and retain top talent, offering the right employee benefits in Singapore is critical. Understanding both mandatory and non-mandatory benefits is essential for building competitive compensation packages and a happy, motivated workforce.

 Why Employee Benefits in Singapore Matter

In Singapore’s competitive job market, employee benefits play a major role in recruitment and retention. While competitive salaries are important, benefits like healthcare, flexible work arrangements, and professional development opportunities often make the difference in securing top talent.

Benefits also signal company culture and values, helping employers stand out. Companies offering well-rounded benefit packages are more likely to attract high-quality candidates, reduce turnover, and enhance overall employee satisfaction.

Mandatory Employee Benefits in Singapore

Central Provident Fund (CPF)

The CPF is a government-run savings program in Singapore. Employers contribute a percentage of an employee’s basic salary to grow their government-provided retirement, health, and housing benefits. The percentage payable depends on a few factors like employee age and visa status. It’s the government’s initiative to support the citizens’ social welfare and financial self-reliance.

Leave Employee Benefits in Singapore

Annual Leave

The Ministry of Manpower mandates that employers grant annual leave after 3 months of employment. It grows depending on the team member’s working years in a company, with the highest being 14 days after 8 years. Companies may choose to provide additional paid leave entitlements in addition to this.

Childcare Leave

Parents have 2-6 days of paid leave per year to care for children. This only applies to those with children under the age of 7.

Maternity Leave

Working mothers are entitled to 12-16 weeks of government paid maternity leave. This is qualified as paid leave for the first and second child of every working mother who’s child is a Singaporean citizen. This benefit is reduced to 12 weeks if the child is not a Singaporean citizen. The employer will pay this directly to the employer then request reimbursement from the government.

Paternity Leave

Working fathers are also entitled to the Government-paid Paternity Leave. Team members with children born on or after January 1, 2017, can file their GPL within 16 weeks of the child’s birth.

Sick Leave

Team members also have the right to paid sick leave. Depending on time in employment, employees are granted between 5 and 14 days of sick leave (non-hospitalised). For hospitalised sick leave, they are granted up to 60 days. This does not apply if the team member gets sick during off days, annual leave, or non-working holidays.

Employee Separation Benefits

The Singapore Employment Act provides the country’s basic principles for employee separation and its supporting benefits. For example, notice period ranges from 1 day for employment within 26 weeks, to 4 weeks if above 5 years. The government also supports talent to find new roles.

Non-Mandatory Employee Benefits in Singapore

Health Insurance

The Basic Healthcare Sum covers team members’ health insurance and is included in their CPF. However, many companies choose to offer more premium coverage bought from private health insurance companies.

Allowance and Hardware

Team members are provided with stipends or allowances depending on their term of service and responsibilities. Some companies also provide hardware, like a PC setup for remote tech employees.

Flexible Work

Singaporean employees like a good work-life balance. Flexible working hours and hybrid work arrangements are highly valued perks, though perhaps not as common as in more western regions. However, given the competitive nature of the talent market in Singapore, this is one of the top employee benefits employers can use to attract and retain talent.

Looking into hybrid work options for your team? We’ve rounded up the top benefits of working from home in this blog. Take a look and see how it could work for your team.

Working Visas

Some employers also offer a working visa for team members needing to relocate for their responsibilities. This is common for Singaporean tech companies that seek specialised skills which may not be readily available in the local market.

Career Development

Many employers also offer career development opportunities for their team members. Some examples include a personal learning budget, therapy, coaching, paid conferences, and workshops.

Per Diem Employee Benefit in Singapore

Singapore is a global hub, and many talents need to travel for work. Per Diem is the company-provided daily allowance for employees travelling for work. Per Diem rates depend on the industry, destination, and the employee’s role and seniority.

Trends in Employee Benefits in Singapore

1. Wellness Programs: Corporate wellness programs, including gym memberships, mental health resources, and wellness allowances, are increasingly popular.
2. Flexible Work Policies: Hybrid and remote working options continue to grow, reflecting global work trends.
3. Parental Support: Beyond maternity and paternity leave, family-friendly policies such as childcare subsidies and extended parental leave are gaining attention.
4. Learning & Development: Employers are prioritising career growth opportunities, from certifications to online courses, as part of total compensation.

How Employers Can Stay Competitive

Offering the right mix of mandatory and discretionary employee benefits is crucial. Some strategies include:

• Benchmarking benefits against industry standards
• Conducting employee surveys to understand needs and preferences
• Offering flexible benefits packages that allow personalization
• Staying informed on government regulations and incentives

Employers that adapt to employee expectations are more likely to attract top talent and retain high-performing teams.

Hire Singapore Talent With Salient

Hiring in Singapore goes beyond checking boxes on benefits. Understanding the local talent market, cultural expectations, and evolving workforce trends is essential.

At Salient, Singapore is a key focus area. Our team works on the ground, meets industry leaders, and stays close to market developments to connect companies with the right sales and tech talent. If you’re looking to hire specialised talent, including SaaS professionals, we can help you hire SaaS talent in Singapore and build teams that drive your business forward.

If you’re planning to grow in Singapore, we can help you design competitive compensation packages, including the right employee benefits in Singapore, and find the team to achieve your goals.

Contact us today, and we’ll respond within 24 hours.