Singapore is a global hotspot for capable talent and business innovation. The workers there excel in industries like tech, finance, healthcare, and supply chain, among others. And the country as a whole boasts business-friendly policies, making the workforce particularly attractive in comparison to other non-US countries. 

So, it only makes sense for global businesses to have Singapore on their radar. But before you jump into the Singaporean labor market, it pays to know the employment law in Singapore and what is expected of you as an employer. 

And that’s what we’ll help with in this guide. We’ll cover mandatory employee benefits in Singapore, supplementary perks Singaporeans typically appreciate, tips to keep in mind as you’re crafting your employee benefits package, and more. 

The Employment Law in Singapore

Anyone curious about Singaporean employment laws should visit the Ministry of Manpower (MOM) website. It’s a user-friendly resource showcasing everything businesses and employees need to know about how the employment law in Singapore works and employer requirements in working arrangements. In addition to the MOM, we recommend browsing the following resources: 

We will give you a snapshot of all the most pertinent laws for global businesses, but we always recommend having a look at the actual laws as well. 

Not Every Employer is Covered Under the Singaporean Employment Act

Before we move forward, you need to know that not all Singaporeans are covered under the Employment Act. If your employees are working under a contract of service with you, they are typically covered under the Act. However, seafarers, domestic workers, and statutory board employees/civil servants are not covered.

Furthermore, Part IV of the Employment Act, which has provisions for hours of work, rest days, and more, applies only to select employees: 

  • Workmen who earn $4,500 or less per month. 
  • Non-workmen who are covered by the Employment Act and earn $2,600 or less. 

There’s more to learn about Employment Law eligibility. Read this resource for more insight. 

Mandatory Employee Benefits in Singapore

Singapore’s laws were created to ensure that Singaporean workers have the basic support and services they need. They cover leave, social security insurance, termination pay, and more. And as an Employer or Employer of Record of Singaporean employees, you’ll need to abide by these laws. Businesses that don’t could be liable for penalties. We’ll cover the mandatory employee benefits in Singapore below:

Central Provident Fund (CPF) Contributions

The Central Provident Fund (CPF) is a compulsory savings scheme designed to make it easier for Singaporeans to obtain healthcare, retirement benefits, and housing. According to the Central Provident Fund (CPF) Board, the amount you’ll contribute to your employee’s CPF depends on their citizenship status, age, total wages subject to CPF contributions, and more. So, there’s no blanket amount that employees or employers are expected to pay. 

The best way to determine your CPF contributions is to read this Employer Obligations page on the Central Provident Fund Board website. It has a step-by-step outline for how to calculate your contributions. There’s also a handy calculator to make things even easier. 

The contributions will rise for the year 2025, so check back with the CPF periodically to stay updated on changes. 

Paid Annual Leave

Per Singapore’s Employment Act, Singaporean employees who have been working for a company for at least three months are entitled to annual leave. Those who have at least one year of service get a minimum of 7 days of leave per year. That number increases incrementally the longer a person has been working for a particular company. Depending on seniority, the annual leave allotment could reach 14 days or more.

If an employee has been working for between 3 and 12 months, they get pro-rated leave. Here’s a table showing how long annual leave should be based on an employee’s year of service:

Number of Years Worked for Current Employer Leave Duration
1 7 days
2 8 days
3 9 days
4 10 days
5 11 days
6 12 days
7 13 days
8+ 14 days

You can learn more about paid annual leave on this Ministry of Manpower page. 

Paid Public Holidays

Singaporean workers are allowed by law to take 11 public holidays off per year. These holidays are to be paid at the employee’s typical gross pay rate if they meet the following qualifications: 

  • They weren’t absent on the working day before or immediately after the holiday without reasonable cause. 
  • They were on authorized leave before or immediately after the holiday. 

Sick Leave

Employees who have been working for an employer for at least 3 months are entitled to sick leave. The amount of leave depends on the situation. For instance, outpatient sick leave tops out at 14 days, while hospitalization leave has a limit of 60 days, including outpatient sick leave. 

Learn more about sick leave using this Ministry of Manpower resource.

Maternity Leave

The general maternity leave entitlement for female Singaporeans is 16 weeks. But there are situations where the mother would only be entitled to 12 weeks of leave (if, for instance, the child isn’t a Singaporean citizen). The Ministry of Manpower has a convenient checklist on its site that illustrates the eligibility requirements for employees and how much time they can take off for maternity leave. You can find the tool here.

Payment amounts during the leave depend on the birth number:

* The government pays the last 8 weeks of maternity leave. ** For the third and subsequent births, the employer pays nothing; the government pays all 16 weeks.
Birth Number Employer Payment
First 8 weeks of employee’s gross pay*
Second 8 weeks of employee’s gross pay*
Third and subsequent N/A**

Paternity Leave

Working fathers who are eligible for paternity leave are allowed to take two weeks off. The monetary benefit will be paid through the Singaporean government – not the employer. 

Childcare Leave

Working parents of Singaporean children get 6 paid days off for childcare annually. Those who are parents of non-Singaporean children get 2 days annually.

Retirement and Re-employment

When a Singaporean citizen reaches the retirement age of 63 and meets the other eligibility requirements, they can retire and live off of any pension money saved up via the Central Provident Fund and any voluntary retirement schemes they contributed to. 

If the employee isn’t yet ready to retire, they can continue to work, provided that they meet the re-employment criteria. 

Work Injury Compensation

Should your Singaporean workers suffer an injury or illness due to work, they may be in line to receive compensation from you, the employer. The interesting thing about workers’ compensation in this country is that it doesn’t matter who is at fault, and you could still be liable even if the employee doesn’t work for you anymore.

Overtime Pay

Singaporeans who are covered under Part IV of the Employment Act are permitted to work up to 9 hours per day or 44 hours a week if they work 5 days a week or less. If they work more than 5 days a week, they can work up to 8 hours a day, or 44 hours a week. Overtime is due only in certain circumstances – when the employee is a: 

Employee typeMonthly salary (SGD)
Non-workman≤ 2,600
Workman≤ 4,500

Supplementary Employee Benefits in Singapore

If you have the above mandatory benefits in your employee benefit plan, you’re in a good place as an employer. But what you’ll find is that many other employers – maybe some of your competitors – are also targeting the Singapore market with hefty employment packages featuring more than bare-minimum benefits. Here are some supplementary employee benefits in Singapore: 

  • Leave that goes beyond the governmental requirements.
  • Childcare benefits (either on-site or in the community)
  • Memberships to gyms, yoga studios, and other wellness facilities. 
  • A private health insurance plan with comprehensive benefits.  
  • Partially or fully paid counseling sessions for mental health support. 
  • Free training opportunities to prime employees for promotion from within. 
  • Allowances to cover lunch and/or transportation. 

The Key to Drafting a Proper Benefit Plan for Singaporeans

At a minimum, employers should strive to cover the legal bases outlined by Singapore employment law. Then, add supplementary benefits according to your prospective employee’s needs. 

Along the way, you could hit some roadblocks. Maybe you’re tripped up by the legalese surrounding the Singapore employment law. Or perhaps you can’t seem to nail down your contribution amounts. And there’s always a chance that all of the steps involved with building and implementing your benefit plan could be overwhelming.

In those cases, reach out for help. Here are a few lifelines to consider: 

So, there you have it – employee benefits in Singapore. We hope you found all the information you were looking for, and we wish you the best as you break into the Singapore market.