In Singapore's competitive talent market, employee benefits are no longer optional — they're a strategic tool for attracting and retaining your best people. Here's everything SME owners need to know.
Mandatory Benefits in Singapore
Under the Employment Act, all employers must provide:
CPF contributions: Employer contributes up to 17% of wages (for employees ≤55)
Annual leave: Minimum 7 days, increasing to 14 days after 8 years
Sick leave: 14 days outpatient + 60 days hospitalisation per year
Maternity leave: 16 weeks (government co-funded)
Paternity leave: 2 weeks (government co-funded)
Public holidays: 11 gazetted public holidays
Optional Benefits That Make the Difference
These are the benefits that set you apart from competitors:
1. Group Hospitalisation & Surgical Insurance
The most valued benefit after salary. Covers hospitalisation costs beyond what MediShield Life provides. Typical cost: $100–$400/employee/year depending on coverage level and age profile.
2. Group Term Life Insurance
Provides death and total permanent disability coverage. Usually 1–3x annual salary. Cost: $50–$200/employee/year. Shows employees you care about their families.
3. Outpatient Medical Benefits
Covers GP visits, specialist consultations, and prescriptions. Can be structured as a managed care plan or reimbursement model. Budget: $300–$800/employee/year.
4. Dental Benefits
Increasingly expected by employees. Annual dental coverage of $200–$500 per employee is a cost-effective perk that employees genuinely appreciate.
5. Financial Wellness Programmes
A growing trend in Singapore. On-site financial literacy workshops, individual financial health checks, and retirement planning seminars. Employees with financial stress are 5x more likely to be distracted at work.
The ROI of Employee Benefits
20-30%
Lower turnover with comprehensive benefits
$15-25K
Average cost to replace one employee
78%
Employees who stay for good benefits
3-5x
ROI on wellness programmes
How to Get Started
Audit your current benefits — What are you offering vs. what your competitors provide?
Survey your employees — What benefits do they value most?
Compare across insurers — Don't just renew. Get quotes from multiple providers.
Consider a holistic approach — Benefits + wellness + financial literacy = maximum impact.
Review Your Employee Benefits
Get a free benefits audit and comparison across 20+ insurers. We've helped SMEs save 15% on premiums on average.
Get Free Benefits Audit