Singapore employers frequently ask two questions when reviewing their HR obligations. The first is: what benefits am I required by law to provide? The second is: what do other employers offer that I am not legally required to provide but that matters for hiring and retention?
The two questions have very different answers, and confusing them creates two types of problems. The employer who does not know what is mandatory risks non-compliance with MOM requirements. The employer who treats everything discretionary as genuinely optional may find themselves at a competitive disadvantage in a labour market where benefit expectations have shifted materially.
This post draws a clear line between the two categories, explains what each mandatory obligation actually involves, and identifies the voluntary benefits that have effectively become market-standard in Singapore's SME employment environment in 2025.
What changed in 2025 that makes this worth reviewing
Several employment law developments came into effect or advanced materially in 2025 that HR managers need to be across.
The Workplace Fairness Bill was passed on 8 January 2025. It will be implemented in phases, with the Workplace Fairness Act (WFA) expected to come into force in 2026 or 2027. The WFA codifies anti-discrimination protections into law for the first time, moving them from the Tripartite Guidelines (which carry no legal force) into enforceable legislation. Employers should begin reviewing their hiring and management practices against the WFA's requirements now rather than at the point of implementation.
Flexible work arrangement (FWA) guidelines require employers to consider and respond to employee requests for flexible work fairly and document their responses. This is not yet a right to flexible work, but it creates a process obligation that employers need to manage.
The CPF Ordinary Wage ceiling rose from S$7,400 to S$8,000 per month from 1 January 2026, the final step in a phased increase that began in 2023. Employers whose payroll software or manual calculations have not been updated to reflect S$8,000 are making underpayments. We covered the interaction between CPF wages and WIC insurance in detail in CPF Wage Ceiling 2026 and Your WIC Insurance.
The mandatory benefits: what the law actually requires
CPF contributions
The Central Provident Fund (CPF) is a mandatory savings scheme for Singapore citizens and permanent residents. Employers must contribute to CPF for all eligible employees based on age and wage bands specified in the CPF Act. The employer's contribution rate for employees below age 55 is 17% of ordinary wages. Employees contribute 20%. Both contributions are subject to the monthly ordinary wage ceiling of S$8,000 from 1 January 2026.
This is not a benefit the employer chooses to offer. It is a statutory obligation enforced by the CPF Board, with interest on late contributions running at 1.5% per month.
Leave entitlements under the Employment Act
The Employment Act prescribes minimum leave entitlements for eligible employees. Annual leave starts at 7 days for the first year of service and increases by one day per year up to a maximum of 14 days. Paid sick leave is 14 days per year for outpatient and 60 days per year including hospitalisation leave for employees with at least 6 months of service. Employees are entitled to 11 paid public holidays per year.
These are floors, not ceilings. An employer can offer more. They cannot offer less to an employee covered by the Act.
Maternity, paternity, and shared parental leave
Under the Child Development Co-Savings Act, eligible working mothers are entitled to 16 weeks of paid maternity leave. Government-paid paternity leave was extended to 4 weeks for eligible fathers, with effect from 1 April 2024. From 1 April 2026, eligible employees gain access to up to 10 weeks of shared parental leave in addition to their existing maternity and paternity entitlements, an increase from 6 weeks under the first phase of the scheme.
The government funds a significant portion of these entitlements. Employers administer the leave and claim reimbursement from the government for the funded portions.
Childcare leave
Employees with children below the age of 7 are entitled to 6 days of childcare leave per year. The first 3 days are employer-paid; the remaining 3 are government-paid. Parents of children between 7 and 12 years are entitled to 2 days of extended childcare leave, which is government-paid.
Work Injury Compensation (WIC) insurance
Under the Work Injury Compensation Act (WICA), employers must hold WIC insurance for all manual workers and all non-manual workers earning S$2,600 or less per month. This is not optional even where the employer believes the workplace is safe. We covered the WIC obligation in our post on WICA and WIC Insurance in Singapore.
Foreign Worker Medical Insurance (FWMI)
Employers of S Pass and Work Permit holders must hold FWMI providing inpatient medical coverage at a minimum of S$60,000 per policy year per worker. The July 2025 FWMI changes raised the minimum coverage limit and tightened maintenance requirements. We covered these in Foreign Worker Medical Insurance in Singapore.
The voluntary benefits: what the market actually expects
The following benefits are not legally required, but in Singapore's 2025 labour market, most employers above a certain size and in most professional sectors offer them as a matter of competitive practice.
Group medical insurance
Group medical insurance covering hospitalisation and surgical expenses and outpatient GP visits is not mandatory for local employees. But in a 2025 MSIG survey, 100% of respondents ranked group medical as the most important employer benefit, and a Prudential SME survey found that 60% of staff said they were more willing to join a company that provides medical benefits.
The practical effect is that for most professional and office-based roles in Singapore, the absence of group medical benefits is a visible gap in an employment package. We covered this in detail in our post on Group Medical Benefits in Singapore.
Group Personal Accident (PA) insurance
Group PA is voluntary insurance that covers employees for accidental death and permanent disablement 24 hours a day, 7 days a week, including outside working hours. It is not mandatory and is separate from WIC insurance. Where WIC covers work-related injuries only, Group PA covers accidents across the full range of daily life. You can read more about our Group Personal Accident cover on the products page and in our post on Group Personal Accident Insurance in Singapore.
Group Business Travel insurance
For employees who travel for work, the obligation to provide insurance during overseas travel is a matter of duty of care, even where no specific legislation mandates it. An employer who sends a staff member overseas on a business trip without travel insurance, and that staff member suffers a medical emergency, faces a real problem morally and practically even if no MOM regulation has technically been breached. You can read more in our post on Group Business Travel Insurance in Singapore.
Dental benefits
Dental is not covered by MediShield Life, by most Integrated Shield Plans, or by the basic hospitalisation component of group medical insurance. It is typically offered either as a component of the group medical plan or as a standalone dental benefit, and is one of the most valued elements of an employee benefits package.
Flexible work arrangements
The Tripartite Guidelines on Flexible Work Arrangements took effect in December 2024. Employees now have a formal right to request flexible arrangements, including remote work, staggered hours, and reduced hours. Employers must respond to these requests within 2 months, in writing, with reasons if the request is declined.
The practical takeaway
For an employer reviewing their obligations and benefits package in 2025, the first step is confirming that all mandatory obligations are actually in place and correctly structured: CPF at the updated ceiling, WIC insurance with accurate wage declarations, FWMI for all foreign workers at the post-July 2025 minimum, and leave entitlements correctly tracked.
The second step is reviewing the voluntary benefits against what the market expects for the role type and sector. The gap between what is legally required and what a competitive employer offers is where most of the hiring and retention impact sits.
You can read more about our Group Medical Insurance, Group Personal Accident, and Group Business Travel cover on the products page. If you would like to understand how your current benefits package sits against these obligations and expectations, we would be glad to work through it with you.
This article provides general information only. It is not insurance advice or legal advice. Statutory requirements are subject to change; please verify current requirements with MOM or a qualified adviser. 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.