1. Central Provident Fund (CPF) Contributions

• Overview:
  The Central Provident Fund (CPF) is the cornerstone of Singapore’s social security system, covering retirement, healthcare, and housing.

• Contribution Rates:

  1. Employees under 55 years old contribute 20% of their monthly salary to the CPF, while employers contribute 17%.

  2. Contribution rates decrease as employees age to account for varying retirement needs and earning capacities. For example, contributions fall to 13% (employer) and 9% (employee) for those aged 55–60, and to 9% (employer) and 7.5% (employee) for those aged 60–65. Employees above 65 contribute 7.5%, with employers contributing 9%.

• Account Allocation:

  • Contributions are distributed into three CPF accounts:

    1. Ordinary Account (OA): For housing, insurance, investment, and education.

    2. Special Account (SA): Primarily for retirement savings, with higher interest rates to promote long-term savings.

    3. Medisave Account (MA): For medical expenses and approved medical insurance, providing a cushion for healthcare costs.

• Retirement and CPF LIFE:

  • CPF LIFE is Singapore’s national annuity scheme, providing lifelong monthly payouts to CPF members beginning at age 65. Members have the option to choose between different CPF LIFE plans (such as the Standard Plan, Basic Plan, and Income Plan) based on their needs and financial circumstances. These payouts offer retirees financial stability in their later years.

• Housing and Education:

  • The CPF is also used to help employees with housing purchases and education expenses, giving them the option to use their funds for personal and family development. Members can use their CPF savings for down payments on property, paying off mortgages, and educational loans.

2. Healthcare Coverage

• Medisave and MediShield Life:

  • CPF Medisave contributions fund a personal savings account that Singaporeans and PRs use to pay for their own or their dependents’ hospitalizations, day surgeries, and certain outpatient treatments.

  • MediShield Life provides basic health insurance coverage for large hospital bills and specific costly outpatient treatments. It is a universal scheme covering all Singaporeans and PRs, including those with pre-existing conditions, ensuring they receive necessary medical care.

• Integrated Shield Plans:

  • Many employees purchase Integrated Shield Plans (IPs), which build on MediShield Life to provide additional coverage for private hospitals and higher-class wards in public hospitals. These plans can include coverage for outpatient treatments, specialist consultations, and more.

• Employer-Provided Health Insurance:

  • While employers in Singapore are not legally required to provide private health insurance, many offer additional plans that cover outpatient visits, dental, or vision care as part of a comprehensive employee benefits package. Some employers also provide wellness programs to promote employee health.

3. Paid Leave Entitlements

• Overview:
  Singapore’s Employment Act mandates specific leave entitlements to support work-life balance and family responsibilities.

• Annual Leave:

  • Employees with at least three months of service are entitled to 7 days of annual leave, which increases by one day per year of service, up to a maximum of 14 days. Employers may offer additional leave days as part of their benefits package.

• Sick Leave and Hospitalization Leave:

  • Employees with three months or more of service are eligible for 14 days of outpatient sick leave per year. If hospitalization is required, employees can take up to 60 days of paid hospitalization leave, inclusive of the 14 outpatient sick days. Employers are required to pay sick leave wages based on the employee’s average daily salary.

• Maternity Leave:

  • Female employees who have served for at least three months and meet the eligibility criteria are entitled to 16 weeks of government-paid maternity leave. The first eight weeks are generally paid by the employer, while the remaining eight weeks are reimbursed by the government. Eligible employees can also claim additional leave if they give birth to multiple children.

• Paternity Leave:

  • Eligible fathers are entitled to 2 weeks of government-paid paternity leave. This leave must be taken within the first year of the child’s birth and is fully funded by the government. Fathers who are eligible for longer leave may be able to claim shared parental leave.

• Childcare Leave:

  • Parents with children under seven are eligible for 6 days of childcare leave each year, with 3 days funded by the government and 3 by the employer. For parents with children aged 7–12, they are entitled to 2 days of extended childcare leave per year. Some employers also provide additional family leave options.

4. Work Injury Compensation

• Overview:
  Under the Work Injury Compensation Act (WICA), employers are required to compensate employees for work-related injuries and occupational diseases.

• Medical and Compensation Benefits:

  • Employees are entitled to claim medical leave wages for both outpatient and hospitalization leave taken due to work-related injuries. Medical expenses are covered up to $45,000 for up to a year from the date of the accident, and employers must provide additional benefits for prolonged medical treatment.

• Permanent Disability and Death Benefits:

  • In cases of permanent disability or death, WICA provides lump-sum compensation. The payout is calculated based on the employee’s age, monthly earnings, and severity of the injury. Dependents of deceased employees may also be entitled to additional compensation.

• Safety and Reporting Obligations:

  • Employers are mandated to report work-related injuries within 10 days of the accident and are encouraged to implement strict workplace safety measures to reduce injury risks. Regular safety training and risk assessments are recommended to enhance workplace safety culture.

5. Public Holidays and Special Leave

• Public Holidays:

  • Singapore observes 11 public holidays each year, including national holidays like National Day and cultural/religious observances such as Chinese New Year and Hari Raya. Employees are entitled to a paid day off on these holidays or compensation if required to work. If a public holiday falls on a rest day, employees are entitled to an additional day off.

• Special Leave and Employer-Specific Policies:

  • Although not mandated by law, many employers provide additional leave options like marriage or bereavement leave to accommodate employees’ personal needs. Some organizations also offer compassionate leave for personal emergencies.

• Additional Family-Friendly Benefits:

  • Some companies also offer flexible work arrangements, parental leave policies, and leave for family emergencies or other personal matters, enhancing support for employees with caregiving responsibilities.

6. Additional Optional Benefits

• Flexible Benefits:

  • Many Singaporean employers offer flexible benefits plans where employees receive a set budget to allocate among health, wellness, or lifestyle perks. These can include gym memberships, wellness programs, and support for education or professional development.

• Employee Assistance Programs (EAPs):

  • EAPs provide counseling and mental health support services. With a growing emphasis on mental wellness, many employers are implementing such programs to assist employees in managing work stress and personal challenges. Programs may include workshops, access to mental health professionals, and resources for personal development.

• Transport and Meal Allowances:

  • Though not mandatory, certain industries provide transportation or meal allowances to enhance employee satisfaction, particularly for roles involving irregular hours or significant travel. Such allowances help employees manage daily commuting costs and improve overall work-life balance.