In 2025, employee benefits in Singapore continue to form the backbone of compliance, workforce wellbeing, and talent retention. Singapore’s employment market is shaped by the Employment Act, the Central Provident Fund (CPF) scheme, and mandatory health and leave entitlements. For global employers, offering compliant and competitive benefits is not just about attracting talent—it is a legal obligation.
While statutory entitlements create the foundation, employers often go beyond to provide attractive perks that appeal to Singapore’s highly skilled and globally mobile workforce. However, navigating compliance and payroll can be complex, especially for businesses without a Singapore entity. That’s where Employer of Record (EOR) services in Singapore streamline payroll processing, CPF contributions, and benefit delivery.
This guide breaks down everything global employers need to know about employee benefits in Singapore in 2025, including statutory obligations, voluntary perks, compliance pitfalls, and how an EOR partner can help.
Table of Contents
- What Are Employee Benefits in Singapore?
- Types of Employee Benefits in Singapore
- Global Contractor Management and Benefits
- Emerging Benefit Trends for 2025
- Steps to Launch Employee Benefits in Singapore
- Estimated Timeline to Implement Benefits
- Legal Framework Governing Benefits in Singapore
- Key Compliance Challenges for Employers in Singapore
- How Asanify Supports Employers in Singapore
- FAQs
What Are Employee Benefits in Singapore?
Employee benefits in Singapore cover all non-salary rewards provided to employees, including both mandatory entitlements defined by law and voluntary perks offered by employers to remain competitive.
For employers, benefits ensure compliance with labour laws in Singapore and help strengthen employer branding. For employees, benefits secure income protection, healthcare access, and work-life balance.
Payroll processing in Singapore plays a key role in benefit administration, ensuring correct CPF contributions, tax withholdings, and leave payouts.
Examples of employee benefits in Singapore include:
- Paid annual leave and public holidays
- Central Provident Fund (CPF) contributions
- Medical coverage (mandatory under Employment of Foreign Manpower Act for work pass holders)
- End-of-service payments (as per contract/agreements)
Types of Employee Benefits in Singapore
Singapore has one of Asia’s most transparent and structured benefits systems, balancing statutory entitlements with employer-driven voluntary perks.
Statutory Entitlements
By law, employers in Singapore must provide a range of benefits that safeguard employees’ income and wellbeing:
Paid Annual Leave and Public Holidays
Employees covered by the Employment Act are entitled to 7–14 days of paid annual leave, depending on length of service. In addition, there are 11 gazetted public holidays each year.
Sick Leave and Hospitalisation Leave
Employees who have worked for at least 6 months are entitled to 14 days of paid outpatient sick leave and up to 60 days of hospitalisation leave, including the 14 days.
Maternity and Paternity Leave
- Maternity leave: 16 weeks of paid leave for eligible female employees.
- Paternity leave: 2 weeks of paid leave for fathers who meet eligibility criteria.
- Shared parental leave: Mothers may transfer part of their leave entitlement to fathers.
CPF (Central Provident Fund) Contributions
Employers and employees must contribute to the CPF, Singapore’s mandatory savings and social security scheme, covering retirement, housing, and healthcare. Employer contribution rates range from 7.5% to 17%, depending on employee age.
Medical Coverage for Foreign Employees
Employers must provide mandatory medical insurance for Work Permit and S Pass holders, covering inpatient and day surgery costs.
Compliance Reminder: Employers must file monthly CPF submissions and comply with MOM’s (Ministry of Manpower) leave regulations.
Suggested Read: EOR Singapore: A Detailed Guide on Employer of Record 2025
Common Voluntary Perks
To remain competitive in Singapore’s skilled labour market, employers often supplement statutory benefits with attractive voluntary perks.
Examples include:
- Private health and dental insurance for Singaporean employees not fully covered by CPF-linked MediShield Life.
- Group term life and critical illness insurance to provide financial security.
- Training and education allowances, aligned with Singapore’s SkillsFuture initiative.
- Flexible working arrangements such as hybrid models and compressed work weeks.
- Wellness programs: fitness memberships, mental health counselling, mindfulness programs.
- Housing allowances or relocation support, especially for expatriates.
- Equity and stock options, popular among startups and multinationals.
These perks boost employee satisfaction and retention, especially in competitive industries like tech, finance, and healthcare.
Global Contractor Management and Benefits
Contractors in Singapore are not entitled to statutory benefits such as CPF, sick leave, or paid holidays. They are responsible for their own taxes and insurance contributions.
For global employers, this creates risks:
- Misclassification of workers – Contractors wrongly treated as employees may trigger CPF back payments and penalties.
- Benefit limitations – Contractors cannot access company-provided perks unless converted to employee status.
Solution: Partnering with an Employer of Record (EOR) in Singapore enables businesses to compliantly reclassify contractors as employees, giving them access to benefits while protecting employers from legal and financial risks.
Emerging Benefit Trends for 2025
The Singapore benefits landscape is evolving rapidly, with employers adopting flexible and employee-focused initiatives. Key 2025 trends include:
- Mental health and wellbeing support – Counselling, stress management, and wellness stipends.
- Remote work stipends – Allowances for home internet, ergonomic chairs, and hybrid work tools.
- Upskilling and career development – Subsidies for certifications and lifelong learning aligned with SkillsFuture.
- Flexible benefits plans – Cafeteria-style packages where employees select preferred perks.
- Sustainability-linked mobility benefits – Incentives for cycling, public transport, and green commuting.
- Digital benefits platforms – AI-powered solutions that personalise and track benefits utilisation.
Steps to Launch Employee Benefits in Singapore
Employers must approach benefits rollout strategically, balancing compliance with employee expectations.
Define Your Benefits Strategy
- Benchmark against industry norms in Singapore.
- Consider both expatriate and local employee expectations.
- Align benefits with company goals and budget.
Understand Compliance Rules
- Follow Employment Act provisions on leave, rest days, and sick leave.
- Ensure correct CPF submissions and income tax withholdings.
- Provide mandatory medical insurance for foreign employees.
Partner with Local Experts
- Engage an EOR in Singapore for compliant payroll and benefits administration.
- Avoid misclassification risks with contractors.
- Ensure seamless onboarding and payroll reporting.
Estimated Timeline to Implement Benefits
| Implementation Step | In-House (Local Entity) | With EOR in Singapore |
| Entity setup & registrations | 1–3 months | Not required |
| Payroll & CPF setup | 4–6 weeks | Immediate |
| Insurance & medical enrollments | 3–5 weeks | 1–2 weeks |
| Full benefits rollout | 2–4 months | 2–3 weeks |
Partnering with an Employer of Record in Singapore cuts implementation time dramatically while ensuring compliance.
Legal Framework Governing Benefits in Singapore
Core Labour Framework and Institutions
- Employment Act – Governs employment terms, leave, and benefits.
- CPF Act – Mandates employer and employee contributions to CPF.
- Employment of Foreign Manpower Act (EFMA) – Requires employers to provide health insurance for Work Permit and S Pass holders.
- MOM Guidelines – Issue sector-specific rules and compliance notices.
Sectoral Practices
Industries such as finance, tech, and biotech often add enhanced allowances, performance bonuses, or relocation support, while startups lean toward equity and flexible perks.
Key Compliance Challenges for Employers in Singapore
Employers face several compliance risks when managing benefits:
- CPF miscalculations – Errors in contribution rates can trigger fines.
- Late CPF submissions – Non-compliance attracts penalties and surcharges.
- Incorrect medical insurance coverage – Especially for foreign employees.
- Worker misclassification – Contractors treated as employees may create legal exposure.
- Leave entitlement disputes – Misinterpreting Employment Act rules can cause conflicts.
- Tax treatment of benefits-in-kind – Housing, transport, and allowances require proper reporting.
An EOR providers in Singapore helps employers avoid these risks by managing payroll, CPF contributions, and compliance reporting.
Suggested Read: Top Employer of Record (EOR) Service Providers in Singapore (2025)
How Asanify Supports Employers in Singapore
Asanify simplifies expansion into Singapore through its Employer of Record (EOR) services, helping global companies stay compliant while offering competitive benefits.
With Asanify, employers can:
- Handle CPF registrations and monthly filings.
- Ensure compliant administration of annual leave, sick leave, and maternity/paternity leave.
- Provide mandatory medical insurance for foreign employees.
- Offer voluntary perks such as training, wellness programs, and flexible benefits.
- Process payroll and payslips in English, Mandarin, or Malay.
- Reclassify contractors into employees to ensure compliance.
By working with Asanify, companies reduce compliance risks, accelerate hiring in Singapore, and deliver a smooth employee experience in Singapore.
FAQs
Annual leave, sick leave, public holidays, CPF contributions, maternity/paternity leave, and mandatory health insurance for foreign employees.
Between 7–14 days depending on length of service, plus 11 public holidays.
Yes, for Work Permit and S Pass holders. For locals and PRs, employers often provide supplemental coverage.
Both employer and employee contribute to CPF. Employer rates range from 7.5–17% depending on employee age.
Maternity leave: 16 weeks paid; paternity leave: 2 weeks paid. Shared parental leave is also available.
14 days paid outpatient sick leave and up to 60 days of hospitalisation leave.
Not under law, but an EOR can employ them directly to provide statutory and voluntary benefits.
Monthly CPF contributions, tax withholdings, and medical insurance compliance for foreign workers.
Housing, transport, and cash allowances are taxable and must be reported correctly.
An EOR handles payroll, CPF, benefits, and compliance reporting, enabling fast, compliant hiring without a local entity.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
