Singapore employment law sets out a specific set of leave entitlements and benefits that employers must provide. These are not optional. They are the statutory minimum below which no employer may go. But for most Singapore employers, the statutory minimum is not the complete picture of what they provide.
This post sets out what the law requires, what sits above the legal floor by common practice, and why the distinction matters for how businesses think about employee benefits.
What the law actually requires
Annual leave. Under the Employment Act 1968, employees who have been employed for at least three months are entitled to paid annual leave. The entitlement starts at seven days per year and increases by one day for each year of service, up to a maximum of 14 days. These figures apply to employees covered by the Employment Act: non-workmen earning up to S$4,500 per month, and workmen earning up to S$2,600 per month.
Sick leave. Employees covered by the Employment Act are entitled to paid sick leave after completing three months of service. The entitlement is 14 days of outpatient sick leave per year and, where hospitalisation is certified, up to 60 days of paid hospitalisation leave (inclusive of the 14 days outpatient leave).
Maternity and childcare leave. Under the Child Development Co-Savings Act, employees who are Singapore citizens or permanent residents are entitled to 16 weeks of Government-Paid Maternity Leave. Paternity leave and shared parental leave entitlements also apply, with the government funding specific portions for qualifying employees.
CPF contributions. Employers are required to make Central Provident Fund contributions for Singapore citizens and permanent residents. Contribution rates vary by age group and are set by CPF Board.
Work Injury Compensation insurance. Under the Work Injury Compensation Act 2019 (WICA), employers must hold WIC insurance for all manual workers, and for non-manual workers earning S$2,600 or less per month. For employees on S Pass or Work Permit, Foreign Worker Medical Insurance is a separate mandatory requirement.
What is not required but commonly provided
The statutory requirements listed above are legally enforceable. An employer who meets them and nothing more is fully compliant with the law. The question is not whether you are legally required to offer more. The question is what the absence of additional benefits costs in practice.
In Singapore's employment market, group medical benefits have become a baseline expectation for professionals, managers, and executives. A 2025 employer benefits survey found that 100% of respondents ranked group medical as the most important employer benefit, and a separate survey found that 60% of staff said they were more willing to join a company that provides medical benefits. The practical effect is that an employer who offers only the statutory minimum is competing for talent against employers who offer the statutory minimum plus group medical, group personal accident, and in some cases dental and specialist cover.
Group Hospital and Surgical (GHS) insurance for hospitalisation and surgical events, outpatient GP panels, Group Personal Accident insurance, and Group Business Travel insurance for employees who travel internationally are the most common voluntary benefits offered by Singapore SMEs above the statutory floor.
How the statutory and voluntary layers interact
Understanding the distinction between mandatory and voluntary benefits matters for how the programme is communicated to employees. Mandatory benefits are entitlements. The employee has a legal right to annual leave, sick leave, and CPF contributions. These are not a demonstration of employer generosity; they are the law.
Voluntary benefits are a choice the employer makes. Group medical insurance, Group PA, and Group Business Travel are products the employer arranges and pays for on behalf of employees. Communicating these clearly as employer-provided benefits, explaining what they cover and how to use them, is what converts them from a line item on the payroll cost to a genuine employment value proposition.
Employees who understand their voluntary benefits use them. Employees who do not understand them do not. The utilisation gap between employees who received a clear benefits briefing at onboarding and those who did not is significant, and it directly affects whether the employer's spend on benefits produces a return in engagement and retention.
You can read more about our Group Medical cover, WIC cover, and FWMI on the products page, and about structuring a complete benefits programme in our post on Structuring an Employee Benefits Package in Singapore.
If you are reviewing your current employee benefits programme and would like to understand how it sits against the statutory floor and the common voluntary practice in Singapore's employment market, we would be glad to work through it with you.
This article provides general information only. It is not insurance advice. Statutory requirements cited reflect Singapore law as at the date of this post. Policy availability, terms, conditions, and exclusions vary by insurer and product, and cover is subject to the full policy wording. Please contact TZY CO for advice on your specific situation.