Employee Benefits in Singapore: What You Must Provide and What You Should
Singapore employee benefits depend on the employee’s status, role and eligibility. Start with CPF, statutory leave, medical obligations and work injury protection, then decide which additional benefits support your hiring needs.
For a Singapore citizen or third-year permanent resident aged 55 or below earning more than S$750 a month, the standard employer CPF rate is 17%. The 2026 Ordinary Wage ceiling is S$8,000 a month; bonuses have a separate Additional Wage ceiling. First- and second-year PRs normally use graduated rates. Foreign employees without PR status do not receive CPF.
Reviewed 9 November 2026. This guide covers current benefits rules and announced 2027 CPF changes. Confirm the relevant eligibility and effective date before issuing an offer or setting a budget.
What Singapore Employers Must Provide
The table summarises key entitlements for eligible employees; it is not an exhaustive list. Childcare, extended childcare, unpaid infant care and adoption leave may also apply. Part-time entitlements follow separate prorating rules. Medical obligations and work injury protection must be assessed alongside leave and CPF.
| Benefit | Entitlement | Who it applies to |
|---|---|---|
| CPF | Full rates at age 55 or below: 17% employer and 20% employee; S$8,000 monthly Ordinary Wage ceiling | Citizens and PRs; age, monthly wages and PR year determine the rates |
| Annual leave | 7 days in the first year, rising by one day a year to 14 days from the eighth year | After three months’ service. Prorated for incomplete years |
| Public holidays | 11 paid days a year | All covered employees, from day one |
| Sick leave | Up to 14 outpatient days and 60 hospitalisation days, including outpatient sick leave | Full limits after six months; lower limits from three months, subject to eligibility |
| Maternity leave | 16 weeks | Eligible mothers under GPML; 12 weeks under the Employment Act may apply otherwise |
| Paternity leave | 4 weeks | Eligible fathers; qualifying birth, estimated delivery or adoption dates from 1 April 2025 |
| Shared parental leave | 10 weeks, shared between parents | Eligible parents: qualifying dates from 1 April 2026; six weeks for 1 April 2025 to 31 March 2026 |
Insurance is not always optional. Employers must maintain qualifying medical insurance for S Pass holders and Work Permit holders, generally with at least S$60,000 annual cover. Work injury compensation insurance is compulsory for manual workers at any salary and non-manual workers earning S$2,600 or less a month on MOM’s specified salary basis. Other covered employees can still claim compensation without compulsory insurance. General medical insurance is not universally required for local employees, but eligible medical consultation fees remain payable. Singapore has no universal minimum wage; PWM and Local Qualifying Salary rules apply to covered employers and workers.
CPF: Rates, Ceilings and What It Costs
CPF rates step down as employees age. These are the rates in force from 1 January 2026 for Singapore Citizens and Permanent Residents from their third year onward, earning more than S$750 a month.
| Employee’s age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Source: CPF Board contribution rate table from 1 January 2026. A new rate applies from the first day of the month after the employee’s 55th, 60th, 65th or 70th birthday, not from the birthday itself. Payroll systems that switch on the birthday will be wrong for part of a month.
Lower-wage employees and first- or second-year Permanent Residents normally follow graduated tables. Employers and eligible PR employees can jointly apply for higher contribution rates. Use the applicable CPF Board table before calculating deductions.
Two ceilings cap the liability. The Ordinary Wage ceiling is S$8,000 a month from 1 January 2026, and the annual ceiling covering ordinary and additional wages together is S$102,000.
Worked example: salary plus CPF. Assume a 40-year-old Singapore citizen or third-year PR earns S$10,000 in monthly Ordinary Wages. CPF applies to the first S$8,000.
Employer CPF: 17% of S$8,000 = S$1,360 a month. Salary plus employer CPF is S$11,360, before SDL, insurance and other benefits. Employee CPF is S$1,600, deducted from pay rather than added to employer cost.
Assuming 12 months of capped Ordinary Wages with the same employer, annual OW subject to CPF is S$96,000. The Additional Wage ceiling is then S$102,000 minus S$96,000 = S$6,000 for all Additional Wages combined, not each bonus. Joining, leaving or salary changes can alter this calculation. Use the Singapore labor cost calculator for an estimate and confirm the employee-specific calculation before payroll.
What Changed in 2026, and What Changes in 2027
Check these changes when updating a benefits budget:
The Ordinary Wage ceiling reached S$8,000 on 1 January 2026. A model still using the 2025 S$7,400 ceiling understates CPF on affected employees’ Ordinary Wages above that amount.
Full CPF rates increased for employees aged above 55 to 65 on 1 January 2026. The other age bands were unchanged; the table above shows the current full rates.
Shared Parental Leave increased to 10 weeks for eligible families from 1 April 2026. The default allocation is five weeks per parent; reallocation is subject to the scheme rules. This is separate from eligible maternity and paternity leave.
Check the qualifying date. Under MOM’s rules, an applicable birth date, estimated delivery date or formal intent-to-adopt date from 1 April 2026 gives eligible parents 10 weeks to share. The period from 1 April 2025 to 31 March 2026 gives six weeks; earlier cases follow the previous scheme. Citizenship, service and other conditions apply.
Employers budgeting for 2027 should allow for another CPF increase from 1 January 2027. The employer rate will rise by 0.5 percentage points for employees aged above 55 to 65. The employee rate will rise by 1 percentage point for those above 55 to 60 and by 0.5 percentage points for those above 60 to 65. Rates for the other age bands remain unchanged.
CPF Does Not Apply to Foreign Employees
CPF contributions are payable only for Singapore Citizens and Singapore Permanent Residents. Employers do not make CPF contributions for foreign employees who have not obtained permanent residence.
Separate mandatory contributions from the additional benefits you choose to offer.
Your cost model. Do not add CPF to a non-PR foreign employee’s salary. Budget instead for applicable levies, insurance, SDL and contractual benefits; these vary by pass type and role.
Your package design. Compare cash pay, insurance and retirement provision separately. CPF includes both an employer contribution and a deduction from the employee’s own pay. A cash allowance is not automatically equivalent to CPF, and its tax treatment may differ.
If a foreign employee becomes a Singapore PR, CPF starts from the date PR status is granted. Obtain the effective date promptly and apply the appropriate first-year rates or approved higher-rate arrangement.
The Skills Development Levy generally applies to local and foreign employees working in Singapore, including part-time, casual and temporary staff. Subject to exemptions, it is 0.25% of monthly total wages, with a S$2 minimum and S$11.25 maximum per employee. Add individual amounts and round the employer’s aggregate payment down to the nearest dollar.
Leave Entitlements in Practice
Annual leave. For employees covered by the Employment Act, statutory annual leave starts after three months of service: seven days in the first year, increasing by one day each year to 14 from the eighth year. Incomplete years are prorated. Record any enhanced entitlement in the employment terms.
Public holidays. Covered employees receive 11 paid public holidays a year. If one falls on a rest day, the next working day is the paid holiday. A holiday on a non-working day requires another day off or an extra day’s gross pay. Work on a public holiday has separate pay and substitution rules.
Sick leave. After six months of service, eligible employees receive up to 14 days of paid outpatient sick leave and 60 days of paid hospitalisation leave per year. The 60 days includes outpatient sick leave. Medical certification and notification requirements apply, including informing or attempting to inform the employer within 48 hours of absence.
| Completed service | Outpatient | Hospitalisation, including outpatient |
|---|---|---|
| 3 months | 5 days | 15 days |
| 4 months | 8 days | 30 days |
| 5 months | 11 days | 45 days |
| 6 months or more | 14 days | 60 days |
Source: MOM sick leave entitlement. Employers must also reimburse qualifying medical consultation fees when the statutory conditions are met.
Parental leave and reimbursement. Eligible mothers receive 16 weeks under the Government-Paid Maternity Leave scheme; 12 weeks under the Employment Act may apply otherwise, with separate payment conditions. Eligible fathers receive four weeks of paternity leave for qualifying dates from 1 April 2025. Shared parental leave follows the dates above. Government reimbursement varies by scheme and is capped; not every week of maternity leave is government-funded.
What the Market Adds Above the Minimum
Choose additional benefits after meeting all statutory requirements. Once benefits form part of an employment contract or binding policy, honour those commitments and obtain any required agreement before changing them.
Medical and dental cover. Compare outpatient limits, hospitalisation cover, exclusions, dependants and waiting periods. An optional top-up must not replace mandatory work-pass insurance or statutory medical obligations.
Additional annual leave. Set an entitlement suited to the role and recruitment market. Define carry-over, expiry and treatment on termination, subject to applicable statutory protections.
Additional insurance. Consider group term life or personal accident cover against the role’s risks and existing protection. Check exclusions and claims limits rather than assuming all policies provide equivalent cover.
Other options include wellness support, professional development and relocation assistance. Keep eligibility and reimbursement rules clear. Separately, follow the Tripartite Guidelines on Flexible Work Arrangement Requests, including the process for considering and responding to formal requests.
Flexible Benefits: How the Schemes Work
A flexible benefits scheme gives employees a defined allowance to spend across approved categories. It can accommodate different needs while giving the employer a predictable budget.
Set a core level of protection first, then offer choices such as dependant cover, dental treatment or professional development. Ask employees what they value rather than assuming preferences from nationality or residence status.
Three design decisions determine whether a scheme works in practice:
- Which categories qualify. Medical and dental, dependant cover, insurance top-ups, wellness, professional development and equipment are the common set. The wider the list, the more administration it carries.
- Whether unspent allowance rolls over or lapses. Define the limit, expiry date and any carry-over before the scheme starts.
- How reimbursement is treated for tax. Tax treatment depends on the underlying benefit, not the flexible-scheme label. Check the IRAS tax principles specifically for flexible benefit schemes, before launch.
A flexible allowance cannot replace statutory entitlements. State eligibility, claim evidence, deadlines and treatment on joining or leaving in a clear policy.
Tax Treatment of Benefits
Employee tax and employer deductibility are separate questions. Benefits are generally taxable unless an exemption or administrative concession applies. Employer deductions depend on business purpose and any specific limits; a deductible expense is not necessarily tax-free for the employee.
Check IRAS medical and dental rules for reimbursement conditions and insurance treatment. On the employer side, medical expense deductions are normally capped at 1% of total employee remuneration, with a 2% limit available under qualifying arrangements. See the specific deduction rules.
Confirm CPF and income-tax treatment before adding cash allowances or reimbursements to an offer. Keep supporting documents for payroll and year-end reporting.
How This Changes by Workforce Model
Statutory entitlements depend on the employment relationship and individual eligibility. Using an EOR does not remove them. With NNRoad’s Singapore EOR service, the Local Team employs eligible local employees and the client manages their day-to-day work.
If your Singapore entity employs the worker, it remains responsible for employment obligations even when payroll is outsourced. For foreign hires, review the lawful work-authorisation route first: an EOR cannot obtain a work pass simply to place a foreigner in Singapore working for an overseas company. Genuine independent contractors generally do not receive Employment Act leave; classification follows the actual working relationship, and separate platform-worker protections can apply.
For the mechanics of setting up either route, see the guide to hiring employees in Singapore.
How NNRoad Supports Benefits in Singapore
NNRoad EOR supports eligible local hiring without the client becoming the legal employer. Our Local Team handles the employer obligations, while you manage the employee’s work. If you already employ staff locally, Payroll Outsourcing covers agreed payroll calculations, payslips and related reports using your approved pay, leave and benefits inputs. You retain HR decisions and employer responsibilities.
Share the intended role, employee status and age, pay structure, benefits and start date for an employee-specific assessment. NNRoad helps manage employment risks on the basis that you provide accurate, timely information and follow our advisers’ recommendations. For EOR clients, the online portal provides employee information, reports and payslips; employees can view their own payslips.
Frequently Asked Questions
What benefits are mandatory for employers in Singapore?
Key obligations include applicable CPF, statutory leave, paid public holidays, qualifying medical reimbursements and work injury protection. Work-pass medical insurance is required for S Pass and Work Permit holders. Eligibility varies by benefit, employee status and role; the table above is a summary, not an exhaustive list.
What is the employer CPF contribution rate in 2026?
For citizens and PRs from their third year earning over S$750 monthly, employer rates are 17% at age 55 or below, 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70. The monthly Ordinary Wage ceiling is S$8,000; Additional Wages have a separate annual ceiling. Graduated or approved higher rates apply to first- and second-year PRs.
Do employers pay CPF for foreign employees in Singapore?
Not for foreign employees who are neither Singapore citizens nor PRs. CPF starts when PR status takes effect, using the relevant contribution table. SDL and any applicable foreign-worker levy, insurance or contractual benefits still need to be budgeted.
How much sick leave are employees entitled to in Singapore?
Eligible employees with at least six months’ service receive up to 14 days of paid outpatient sick leave and 60 days of paid hospitalisation leave a year. The 60 days includes outpatient sick leave. Lower limits apply at three, four and five months; certification and notification requirements also apply.
How much parental leave do Singapore employees get?
Eligible parents may receive 16 weeks of maternity leave, four weeks of paternity leave and 10 weeks of shared parental leave for qualifying dates from 1 April 2026. Shared parental leave is six weeks for qualifying dates from 1 April 2025 to 31 March 2026; earlier cases follow the previous scheme. Mothers outside the 16-week scheme may qualify for 12 weeks under the Employment Act, with separate payment conditions.