Blog, Employee Benefits
Spotlight on Singapore – A guide to implementing employee benefits technology
04.03.25
Technology and flexibility go hand in hand when it comes to rolling out employee benefits in Asia – and Singapore is a prime example. We work closely with customers across the region, giving us deep insight into both the benefits landscape and the growing demand for flexibility through digital solutions.
Singapore boasts a highly developed and fast-moving labor market, where 64% of employees in Singapore are open to new opportunities, compared to 53% in the UK and 43% in the US (Benifex Great Expectations Research). In such a dynamic environment, it’s important to deliver a standout benefits experience through a seamless, intuitive platform.
The country’s benefits structure includes a combination of mandatory and voluntary employee benefits, designed to provide social security, healthcare, and retirement savings through employer and employee contributions. To stand out, many employers go beyond the basics – offering enhanced benefits and more flexible options to meet rising employee expectations and attract top talent.
Although local benefit options can be more limited than in other regions, employee expectations in Singapore are anything but. Our research shows that 90% of Singaporean employees want a single place to access all their benefits, resources, and content – the highest of any country surveyed. Yet, over half (54%) feel that the technology they use at work lags behind what they use at home. This signals a clear opportunity for global reward and benefits leaders to differentiate the employee experience in Singapore by investing in user-friendly, flexible, and future-ready digital solutions.
Mandatory benefits
Singapore’s social security system is primarily funded through the Central Provident Fund (CPF), along with employer contributions toward healthcare and other statutory requirements:
Central Provident Fund (CPF)
Employers contribute up to 17% of an employee’s salary, while employees contribute up to 20%. CPF savings are allocated to three accounts:
- Ordinary Account (OA): Used for housing, insurance, and investment
- Special Account (SA): For retirement savings
- MediSave Account (MA): For medical expenses and health insurance
Retirement and pension (CPF Life)
Employees are enrolled in CPF Life, a government-backed annuity scheme providing monthly payouts from age 65. Contributions to CPF throughout an employee’s working life help fund post-retirement income.
Healthcare benefits (MediSave & MediShield Life)
Employers must contribute to MediSave, a compulsory savings scheme for medical expenses. Employees are covered under MediShield Life, a national health insurance program for hospital and outpatient expenses. Employers with 10+ employees must provide Statutory Medical Leave, which covers up to 14 days for outpatient leave and 60 days for hospitalization.
Skills Development Levy (SDL)
Employers must contribute 0.25% of an employee’s monthly salary to fund workforce training and upskilling programs.
Core benefits
To attract and retain employees, many companies in Singapore provide additional benefits beyond statutory requirements:
Private health insurance
Many employers offer group health insurance to supplement MediShield Life. These plans cover specialist consultations, dental, vision, and wellness programs. Some companies also offer international health coverage for expatriates.
Supplementary retirement plans
Employers may provide Supplementary Retirement Schemes (SRS), offering tax-advantaged savings options. Some multinational companies also offer private pension contributions, in addition to CPF.
Life and disability insurance
Many employers provide Group Life Insurance covering one to three times an employee’s annual salary. Providing accidental death and disability insurance is also common in corporate benefits packages.
Performance-based bonuses
Most companies provide annual bonuses, often one to three months of an employees’ salary, depending on company performance. A 13th-month salary (AWS – Annual Wage Supplement) is also common in some industries.
Popular benefits
Employers in Singapore increasingly focus on work-life balance and financial wellbeing through various initiatives:
Flexible work arrangements
Remote work, hybrid schedules, and flexible working hours are becoming more common to offer employees a more flexible way of working.
Professional development and education support
This includes providing tuition reimbursement for MBAs, certifications, and skill-based training, as well as access to e-learning platforms and leadership programs.
Commuter and transport benefits
Employers provide public transport allowances and company transport services for employees who commute into work, while some companies provide subsidies for electric vehicles or car-sharing services.
Wellness and mental health programs
Employers offer gym memberships, wellness stipends, and stress management programs, while Employee Assistance Programs (EAPs) provide mental health counseling and support for employees.
Childcare and family support
Employers are increasingly offering on-site childcare, childcare subsidies, and additional parental leave benefits. Some employers also provide family care leave to support employees with elderly parents.
Key considerations for implementing employee benefits in Singapore
Although over half of Singaporean employees (52%) want more choice and flexibility, delivering this can be a challenge as the local benefit offering tends to be limited. This issue becomes even more acute when considering the local competition for talent, as well as growing expectations – 79% of employees in Singapore say their expectations of their employer have risen in the last year.
- Consolidate the experience with a single digital platform. To meet rising expectations and streamline delivery, many organizations are turning to technology to bring all employee benefits, communications, and resources into one place. A unified platform simplifies access and enables employees to better understand and engage with what’s available to them.
- Use spending accounts to offer meaningful flexibility. While the standard benefits package in Singapore can be limited, spending accounts offer a smart way to introduce personalization. Many Benifex clients use wellbeing or leisure allowances to give employees the freedom to choose how they want to support their health and lifestyle. Common examples include health screenings, vision costs, traditional Chinese medicine, and health supplements. More recently, spending accounts have also been extended to cover a wider range of leisure activities as part of broader wellbeing strategies.
- Introduce flexible funding to enhance personalization. Where technology allows, flexible funding is an effective way to increase choice without overwhelming complexity. Typically, employers in Singapore finance a core level of cover for medical or life insurance – and employees can then choose to increase their cover or add dependants. With flexible funding, employees receive a total benefits allowance that can be used to personalize their medical cover or purchase additional life insurance cover, and anything left over goes into a spending account. Employers can define specific categories – such as wellbeing or leisure – for how leftover funds can be used. Several Benifex customers have successfully implemented this approach using OneHub, which also allows employees to adjust their core benefit levels directly within the platform.
If you would like to learn more about delivering flexible benefits in Singapore and see how OneHub can help you deliver on employee expectations, just get in touch.
04.03.25
