{"id":100584,"date":"2024-06-18T11:53:05","date_gmt":"2024-06-18T03:53:05","guid":{"rendered":"https:\/\/linksinternational.com\/?p=100584"},"modified":"2026-05-05T18:07:20","modified_gmt":"2026-05-05T10:07:20","slug":"understanding-employee-benefits-in-singapore","status":"publish","type":"post","link":"https:\/\/linksinternational.com\/en-sg\/blog\/understanding-employee-benefits-in-singapore\/","title":{"rendered":"Understanding Employee Benefits in Singapore: A Comprehensive Guide"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">With the impact of globalisation, companies can now recruit talent from around the world, irrespective of location with the rise of remote workers worldwide. Due to advancements in the times, remote work is more popular than ever bringing in more employee benefits. Although some businesses have returned to the office, flexible and fully remote teams remain a part of the new normal. One compelling reason is that remote workers often tend to be more efficient than those working in an office.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Singapore, an APAC regional hub, has welcomed remote working. This nation is popular with international employers, offering a wealth of highly skilled professionals with global experience. In June 2022, 73% of Singaporean workers expressed a strong preference for a hybrid work model over the next 12 months. However, before hiring, companies must ensure compliance with local <a href=\"https:\/\/linksinternational.com\/en-sg\/apac-labour-law-updates1\/\">labour laws<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many firms utilise an <a href=\"https:\/\/linksinternational.com\/en-sg\/hr-outsourcing\/secondment-peo\/\">Employer of\nRecord (EOR)<\/a> to navigate the complexities of\nemployment regulations, avoiding the need to establish a legal entity in\nSingapore. It handles everything from\nemployee onboarding, payroll processing, and tax filings to ensuring compliance\nwith Singapore&#8217;s labour laws. This not only\nsimplifies the process of entering the market but also ensures that all legal\nand regulatory requirements are met.<s><\/s><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide covers\nkey areas for understanding employee\nbenefits in Singapore:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Employment Act and eligibility for benefits<\/li><li>Statutory benefits required in Singapore<\/li><li>Additional benefits to attract top Singaporean talent<\/li><li>Best practices for managing benefits and compensation for international employees<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Singapore\u2019s Employment Act<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The Employment Act is Singapore\u2019s primary labour law, setting out basic conditions and benefits that employers must provide. Learn more about how to hire and stay compliant with the <a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/employment-act-singapore-how-to-hire-and-stay-compliant\/\">Employment Act Singapore<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Coverage under the Employment Act<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The Act covers\nall employees, both local and foreign, under a contract of service, whether\nthey are full-time, part-time, or temporary. Employees can be paid hourly,\ndaily, monthly, or by piece-rate. However, civil servants, domestic workers,\nand seafarers are not covered, as their conditions and benefits are stipulated\nin their contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Significant amendments to the Act on April 1, 2019, included coverage for managers and executives earning over S$4500 a month, such as lawyers, accountants, doctors, and dentists.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Benefits Provisions<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Employees covered\nby the Employment Act (EA Employees) are entitled to specific benefits,\nincluding annual leave, paid medical leave, and public holiday pay. <a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/independent-contractor-set-up-in-singapore\/\">Independent contractors<\/a>, however, are\nnot entitled to statutory benefits, with their remuneration determined by\ncontractual agreements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s crucial to\nunderstand this distinction to avoid misclassification risks and potential\npenalties.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Offering Benefits to Contractors<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Even though\nbenefits are not legally required for contractors, offering a benefits package\ncan demonstrate commitment and strengthen connections, especially in a remote\nworking context. However, ensure these benefits do not trigger permanent\nestablishment or misclassification risks. Value-based benefits like paid time\noff, flexible hours, and parental leave are often safe options.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An <a href=\"https:\/\/linksinternational.com\/en-sg\/hr-outsourcing\/secondment-peo\/\">EOR<\/a> provider can provide specific advice on minimising associated risks according to Singapore\u2019s employment legislation.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/linksinternational.com\/en-sg\/hr-outsourcing\/secondment-peo\/\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002-1024x431.jpg\" alt=\"EOR Services\" class=\"wp-image-84146 lazyload\"\/><noscript><img decoding=\"async\" width=\"1024\" height=\"431\" src=\"https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002-1024x431.jpg\" alt=\"EOR Services\" class=\"wp-image-84146 lazyload\" srcset=\"https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002-1024x431.jpg 1024w, https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002-300x126.jpg 300w, https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002-768x323.jpg 768w, https:\/\/linksinternational.com\/wp-content\/uploads\/2023\/08\/08082023-EOR-calculator-page-Web-banner-1883x793-002.jpg 1883w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/a><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Statutory Benefits under Singapore\u2019s Employment Act<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Statutory\nbenefits, or mandatory benefits, are those employers must provide by law. These\ninclude paid annual leave, parental leave, worker\u2019s compensation insurance, and\npaid sick leave.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Central Provident Fund (<\/strong><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/how-to-calculate-employer-cpf-contribution-rate-in-singapore\/\"><strong>CPF<\/strong><\/a><strong>) \u2013 Retirement\nand Health Benefit<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Employers must\ncontribute about 17% of an employee\u2019s basic salary to the CPF, supporting\nretirement and health benefits. Singaporean residents working for overseas\ncompanies must pay taxes in Singapore, with rates scaling up to 22%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although Singapore lacks minimum wage laws, the Employment Act defines what constitutes basic and gross pay rates, regulating payments for work on rest days, public holidays, and overtime.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Leave Entitlements<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Employees are\nentitled to paid annual leave after three months, increasing with service\nlength, and 11 paid public holidays annually. Sick leave entitlements include\n14 days paid leave and 60 days hospitalisation leave, with consultation fees\nreimbursed by the employer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Childcare leave\nprovisions differ based on the child\u2019s citizenship, and maternity leave varies\nbetween 16 weeks for Singaporean citizens and 12 weeks for foreign residents.\nFathers are entitled to two weeks of Government-Paid Paternity Leave, with\nshared parental leave options available.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Social Security<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Singapore\u2019s\nsocial security system is comprehensive, with monthly CPF contributions divided\namong Ordinary, Special, and Medisave accounts. Recent changes include an\nincreased retirement age, ensuring employees cannot be terminated on age\ngrounds before reaching the statutory retirement age.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Health Insurance<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Employers can\nenhance their attractiveness by offering private health insurance,\nsupplementing the Basic Healthcare Sum. Additional insurance benefits, such as\ndental and vision insurance, can further differentiate an employer\u2019s offer.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Termination and Severance<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Termination terms\nare typically outlined in employment contracts, with notice periods varying\nbased on service length. Severance pay is not specifically regulated but often\nincluded in contracts as \u201cretrenchment benefits.\u201d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Attracting Singaporean Talent: Additional Benefits<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">To attract top\ntalent in Singapore, companies must offer competitive and locally attractive employee benefits. Beyond\nstatutory requirements, consider <a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/all-your-frequently-asked-questions-on-singapores-flexible-work-arrangements\/\">flexible working hours<\/a>, home working\nallowances, and value-based workplace benefits like learning and development\nbudgets, therapy allowances, mentorship programs, and gym memberships.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Managing Benefits for Global Employees<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Creating a\ncompliant and competitive benefits package for global employees can be\nstreamlined by using an EOR. This approach allows companies to manage benefits\ndelivery, compliance, and termination processes efficiently across multiple\njurisdictions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>When to Use an <\/strong><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/the-right-way-to-use-an-employer-of-record-in-singapore\/\"><strong>Employer of Record<\/strong><\/a>?<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">An EOR is ideal\nfor managing global hiring complexities, offering expertise to create robust\nbenefits packages and compliant employment contracts. Link\u2019s <a href=\"https:\/\/linksinternational.com\/en-sg\/hr-outsourcing\/secondment-peo\/\">EOR service<\/a> combines local\nHR expertise with a user-friendly software platform to handle the intricacies\nof international employment, allowing you to focus on business growth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"text-align:center\"><strong>Read Also: <\/strong><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/understanding-the-role-of-eor-services\/\"><strong>Understanding the Role of Employer of Record (EOR) Services<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In Singapore, remote working is being implemented more than ever &#8211; offering strong employee benefits. Interested to know more about how EOR can help you hire in another location? <a href=\"https:\/\/linksinternational.com\/en-sg\/about-us\/contact-us\/\">Contact us<\/a> to help you scale your distributed team faster.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Related Blogs:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/singapore-budget-2026-what-businesses-and-hr-leaders-need-to-know\/\">Singapore Budget 2026: What Businesses and HR Leaders Need to Know<\/a><\/li><li><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/singapore-employment-pass-update-guide-to-compass\/\">Singapore Employment Pass Update: Comprehensive Guide to COMPASS<\/a><\/li><li><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/top-5-questions-on-singapore-working-hours-and-overtime-pay\/\">Top 5 Things to Know About Singapore Working Hours &amp; Overtime Pay<\/a><\/li><li><a href=\"https:\/\/linksinternational.com\/en-sg\/blog\/payroll-outsourcing-singapore-how-to-choose-the-right-provider\/\">Payroll Outsourcing Singapore: How to Choose the Right Provider<\/a><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p class=\"text-justify\">With the impact of globalisation, companies can now recruit talent from around the world, irrespective of location with the rise of remote workers worldwide. Due to advancements in the times, remote work is more popular than ever bringing in more employee benefits. Although some businesses have returned to the office, flexible and fully remote teams [&#8230;]<\/p>\n<p class=\"text-justify\"><a class=\"btn btn-secondary links-read-more-link\" href=\"https:\/\/linksinternational.com\/en-sg\/blog\/understanding-employee-benefits-in-singapore\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[313],"tags":[],"class_list":["post-100584","post","type-post","status-publish","format-standard","hentry","category-hro"],"acf":[],"_links":{"self":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/comments?post=100584"}],"version-history":[{"count":5,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100584\/revisions"}],"predecessor-version":[{"id":145896,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/posts\/100584\/revisions\/145896"}],"wp:attachment":[{"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/media?parent=100584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/categories?post=100584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/linksinternational.com\/en-sg\/wp-json\/wp\/v2\/tags?post=100584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}