In 2025, the competition for top talent in Singapore will be fiercer than ever. For SMEs, offering affordable staff benefits in Singapore is not just a perk—it’s a necessity to attract and retain skilled employees. While large corporations may have deeper pockets to offer lavish perks, SMEs can still stand out by implementing creative and cost-effective employee benefits that prioritize employee satisfaction, work-life balance, and well-being.
This updated list includes 15 affordable staff benefits Singapore SMEs can adopt to create a supportive and engaging workplace.
15 Affordable Staff Benefits for SMEs in 2025
1. Employee Recognition Program
Recognizing employees’ hard work and achievements is one of the most impactful yet affordable ways to boost morale and motivation. By using employee recognition platforms like PraisePal, SMEs can implement a seamless and cost-effective employee recognition program that celebrates employees’ contributions in real-time.
PraisePal allows managers and peers to give shout-outs, awards, and rewards through a user-friendly platform with a points-based reward system. PraisePal helps create a culture of appreciation that drives employee satisfaction and employee engagement.
Employees can choose from 1,700+ gift card rewards on PraisePal's digital gift card catalogue, with automated redemption which makes employee rewards hassle-free for HR teams. Best of all, it’s scalable and affordable, making it perfect for SMEs.
PraisePal is also known for its top notch user support with in-app live chat with a Singapore-based support team, and loved by employees at Singapore SMEs and top global organizations like People's Association, Love, Bonito, Grab, and Lazada.
2. Flexible Working Hours
Flexibility is no longer a luxury—it’s an expectation. Offering flexible working hours or remote work options can significantly improve employees’ work-life balance and productivity.
Under Singapore's Employment Act, employers are encouraged to adopt flexible work arrangements. For SMEs, this benefit requires no financial investment but delivers immense value by showing employees that their personal lives matter.
3. Employee Wellbeing Programs
Employee wellbeing is at the top for employees on their list of desired employee benefits. SMEs can offer affordable wellness benefits for both physical wellbeing and mental wellbeing, such as discounted gym memberships, access to mental health support resources, and introducing employee wellbeing programs.
These initiatives not only improve employees’ physical and mental health but also reduce absenteeism and healthcare costs. Partnering with local wellness providers can make these programmes even more cost-effective.
For more, see how PraisePal helped TikTok increase participation in their employee wellbeing initiatives
4. Health Insurance and Medical Coverage
While mandatory employee benefits in Singapore include paid sick leave and medical leave, SMEs can enhance their staff benefits by offering private health insurance plans, medical insurance, or enhance their paid medical leave benefits.
Group medical insurance plans are affordable for SMEs and provide employees with peace of mind knowing their medical expenses are covered. This is especially valuable for employees who may not have access to comprehensive medical coverage through their Central Provident Fund (CPF) as part of the Singapore mandatory employee benefits as a health benefit employers need to adhere to.
5. Paid Annual Leave and Additional Time Off
Under the Employment Act, employees in Singapore are entitled to a minimum of 7 to 14 days of paid annual leave, depending on their years of service as part of satutory benefits. SMEs can stand out by offering additional paid time off or allowing employees to carry over unused leave from their employment contracts.
This benefit supports employees alongside other wellness benefits, and encourages them to recharge. Offering paid childcare leave or maternity leave beyond the need to provide statutory benefits can further enhance your company's staff benefits in Singapore.
6. Employee Assistance Programmes (EAPs)
Employee Assistance Programmes (EAPs) provide mental health support, financial planning resources, and legal advice. For SMEs, partnering with EAP providers is an affordable way to offer value-based benefits that address employees’ holistic needs beyond other benefits like financial support and medical expenses.
7. Training and Development Opportunities
Investing in employees’ professional growth is a win-win for SMEs and their staff. Offering training programmes, workshops, or online courses can enhance employees’ skills and boost their career prospects, as well as giving them the opportunity for international employment in overseas companies within the organization.
Government grants and subsidies in Singapore for Singapore citizens can help SMEs offset training expenses, making this benefit both affordable and impactful.
In 2025, as the workforce becomes more competitive, employee benefits examples like training opportunities will be crucial for retaining top talent and attract Singapore citizens.
8. Retirement Benefits and CPF Contributions
Under Singapore’s Central Provident Fund (CPF) system, the Employment Act defines that employers are required to make monthly contributions to their employees’ CPF accounts and Ordinary account. SMEs can enhance their employee benefits package by offering voluntary top-ups to employees’ CPF accounts.
This provides employees with greater financial security and demonstrates the company’s commitment to their long-term well-being.
In 2025, retirement benefits will remain a key consideration for employees, especially as they approach the statutory retirement age.
9. Work-Life Balance Initiatives
Promoting a healthy work-life balance is essential for most companies to improve employee satisfaction and productivity. SMEs can introduce initiatives like flexible hours, remote work options, or paid time off for volunteering.
These low-cost initiatives show employees that their personal lives are valued, improving morale and loyalty.
10. Voluntary Benefits and Perks
In addition to fixed staff benefits, SMEs can offer voluntary benefits for employees to choose from, such as additional insurance benefits, gym memberships, or discounts on retail and dining.
These perks can be negotiated at group rates, making them affordable for SMEs while adding value to your employee benefits programme.
In 2025, Singapore additional benefits like these will help SMEs stand out in a competitive job market and even atttact global employees creating their career in Singapore.
11. Mental Health Support and Counseling
In 2025, mental health benefits will be a cornerstone of any competitive benefits package. SMEs can provide access to counseling services, stress management workshops, or mindfulness apps as part of their employee benefits package beyond offering medical insurance and the basic healthcare sum.
These initiatives are affordable and demonstrate the company’s commitment to employees’ holistic well-being.
12. Financial Wellness Programmes
Financial stress is a major concern for employees. SMEs can offer financial wellness programmes that include budgeting workshops, retirement planning resources, or access to financial advisors.
These programmes help employees achieve financial security and reduce stress, leading to higher productivity and satisfaction.
13. Team Building Activities
Affordable team-building activities, such as virtual escape rooms, lunch-and-learn sessions, or outdoor adventures, can strengthen relationships and improve collaboration.
These activities foster a positive work environment and show employees that their happiness matters, beyond the usual employee benefits.
14. Sustainability Initiatives
In 2025, employees will value companies that prioritize sustainability. SMEs can implement eco-friendly initiatives, such as recycling programmes, green commuting incentives, or carbon footprint challenges.
These initiatives are low-cost but highly impactful, aligning with employees’ values and enhancing your company’s reputation.
15. Customizable Staff Benefits Packages
Finally, SMEs can offer customizable benefits packages that allow employees to choose the perks that matter most to them. Whether it’s additional paid time off, health benefits, or wellness programmes, this approach ensures that employees feel valued and supported.
Summary of Staff Benefits in Singapore for SMEs
In 2025, SMEs in Singapore have a unique opportunity to stand out by offering affordable staff benefits that prioritize employee satisfaction, work-life balance, and well-being. From employee recognition programs to flexible work arrangements and mental wellbeing support, these benefits are both cost-effective and impactful.
By investing in your employees’ needs, you can build a motivated and engaged workforce that drives your business’s success. Start by evaluating your current employee benefits programme and identifying areas for improvement. With the right approach, your SME can compete with larger companies and become an employer of choice in Singapore.
Read on to learn more about staff benefits in Singapore, including mandatory benefits and the typical staff benefits offered by Singapore companies.
Statutory Benefits Under Singapore's Employment Act
Under Singapore's Employment Act, employees are entitled to several key statutory benefits designed to ensure fair treatment and basic financial security. These benefits include annual leave, which ranges from seven to 14 days depending on the length of service, and paid public holidays, with 11 days per year. Employees are also entitled to sick leave, with up to 14 days available, and hospitalization leave, which can extend to 60 days under specific conditions. Additionally, the Act mandates maternity and paternity leave, with mothers eligible for 16 weeks of paid leave for Singaporean citizens and fathers entitled to four weeks.
Annual Leave
In Singapore, annual leave is a statutory benefit under the Employment Act, which requires employees to have worked for at least three months to be eligible. The minimum entitlement starts at seven days in the first year and increases by one day each year, reaching a maximum of 14 days after eight years of service. Employers often offer more generous leave policies, ranging from 14 to 20 days annually, to enhance employee satisfaction and retention.
Maternity leave
Maternity leave in Singapore is governed by the Government-Paid Maternity Leave (GPML) scheme, which provides eligible working mothers with either 16 weeks or 12 weeks of maternity leave, depending on whether the child is a Singapore citizen and other criteria.
Sick Leave
Sick leave in Singapore includes both outpatient and hospitalization leave. Employees who have worked for at least three months are eligible for paid sick leave, with up to 14 days available for outpatient care and up to 60 days for hospitalization if they have worked for more than six months. The total entitlement is capped at 60 days, meaning that any outpatient leave taken reduces the available hospitalization leave. Employees must be certified unfit for work by a registered medical practitioner to claim sick leave.
Paid Time Off and Vacation Policies
Paid time off and vacation policies in Singapore often extend beyond the statutory minimums for annual leave. While the Employment Act sets a baseline for annual leave, many companies offer more generous policies, sometimes including unlimited paid time off, to provide employees with greater flexibility and control over their work-life balance.
How To Set Up and Manage Benefits For Global Employees
Setting up and managing benefits for global employees requires a strategic approach that balances compliance with local regulations, cultural sensitivity, and employee needs. The first step involves assessing and offering benefits tailored to the diverse needs of employees across different regions, often by partnering with global HR services or using region-specific tools. Customizing benefits to meet local expectations is essential. HR teams can leverage technology such as a global employee recognition and rewards software to streamline benefits management and employee rewards program for global employees.
Employee benefits examples
Employee benefits can extend beyond statutory requirements to include innovative programs that enhance employee engagement and satisfaction. For instance, employee recognition programs like PraisePal offer a points-based system where employees can recognize and reward their peers, fostering a culture of gratitude and teamwork. These programs allow employees to earn redeemable points for meaningful rewards or gift cards, promoting motivation and a sense of belonging.
Frequently Asked Questions About Staff Benefits in Singapore
1. What are the mandatory employee benefits in Singapore?
Under Singapore's Employment Act, mandatory employee benefits include paid annual leave (7 to 14 days based on years of service), paid sick leave, maternity leave, public holiday pay, and CPF contributions. Employers must also provide medical leave and work injury compensation as part of statutory benefits. These are essential to ensure employees’ financial security and well-being.
2. What is the most common employee benefit?
The most common employee benefit in Singapore is health insurance, which often includes medical coverage for outpatient and inpatient treatments. Many companies also offer wellness benefits like gym memberships or mental wellbeing support to promote employees’ overall well-being.
4. What are the entitlements for employees in Singapore?
Employees in Singapore are entitled to mandatory benefits such as paid annual leave, paid sick leave, maternity leave, public holiday pay, and CPF contributions. They are also protected under the Employment Act, which defines rights like severance pay, work injury compensation, and minimum wage laws for certain sectors.
5. What are the common company benefits in Singapore?
Common company benefits in Singapore include insurance, flexible working hours, wellness programmes, paid annual leave, and employee rewards programs. Many companies also offer additional insurance benefits, gym memberships, and training opportunities to attract and retain talent.
6. What benefits do employees value most?
Employees in Singapore value flexible work arrangements, wellbeing programs, and employee recognition programs the most. These benefits address their physical, emotional, and financial needs, promoting better work-life balance and employee satisfaction.
7. What are the employee benefits in Singapore?
Employee benefits in Singapore include mandatory benefits like paid annual leave, sick leave, and CPF contributions, as well as voluntary benefits such as health insurance, wellness programmes, and flexible work arrangements. Companies may also offer retirement benefits, training opportunities, and employee recognition programs.
8. What are flexible benefits in Singapore?
Flexible benefits in Singapore allow employees to customize their benefits package based on their needs. Examples include choosing between additional insurance benefits, gym memberships, or paid time off. These benefits provide flexibility and cater to diverse employee preferences, enhancing employee satisfaction.
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