Singapore’s statutory benefits framework is defined by the Employment Act, with government-supported leave schemes covering maternity, paternity, and childcare. The Central Provident Fund (CPF) acts as the core social security mechanism, and employers need to understand how the reimbursement process for government-paid leave works before they hire their first Singapore-based employee.
Overview of singapore’s statutory benefits framework
The Employment Act sets minimum entitlements for leave, sick pay, and working conditions. For parental leave, Singapore uses a government-funded reimbursement model: the employer pays the employee during leave, then claims back a portion of that cost from the government. CPF sits alongside this as the compulsory savings and social security system for citizens and permanent residents (PRs).
Leave entitlements
Singapore law sets out several categories of statutory leave. Each applies once an employee has completed at least three months of continuous service with you.
Annual leave
Annual leave entitlement under the Employment Act scales with length of service, starting at 7 days in the first year and capping at 14 days from year 8 onwards.
| Year of service | Annual leave entitlement |
|---|---|
| 1 | 7 days |
| 2 | 8 days |
| 3 | 9 days |
| 4 | 10 days |
| 5 | 11 days |
| 6 | 12 days |
| 7 | 13 days |
| 8 and beyond | 14 days |
The entitlement applies to employees covered by the Employment Act. You can offer more than the statutory minimum, and many employers do so as part of their benefits package.
Sick leave
Employees are entitled to paid sick leave once they have served at least three months. A medical certificate from a registered doctor is required for the leave to count as paid.
| Leave type | Entitlement per year |
|---|---|
| Outpatient sick leave | 14 days |
| Hospitalisation leave | 60 days (includes the 14 outpatient days) |
The 60-day hospitalisation leave figure is an aggregate. If an employee uses their 14 outpatient days and then is hospitalised, they have up to 46 additional days of paid hospitalisation leave remaining.
Maternity leave
Maternity leave entitlement depends on whether the child is a Singapore citizen.
Singapore citizen child: The employee is entitled to 16 weeks of paid maternity leave. The first 8 weeks are paid by the employer. The second 8 weeks are paid by the government through the Government-Paid Maternity Leave (GPML) scheme. You pay the employee for the full 16 weeks and then claim back the government-funded portion from the Ministry of Social and Family Development (MSF). The reimbursement is capped at SGD 10,000 per 4-week period.
Non-citizen child: The employee is entitled to 12 weeks of leave. The first 8 weeks are employer-paid. The remaining 4 weeks are unpaid.
In both cases, the employee must have served at least 3 months with you before the birth to be eligible.
Paternity leave
The Government-Paid Paternity Leave (GPPL) scheme entitles eligible working fathers to 4 weeks of paid paternity leave. To qualify:
- The child must be a Singapore citizen
- The employee must have served at least 3 months with you before the birth
- For children born or with an Expected Date of Delivery (EDD) on or after 1 April 2025, the full 4 weeks apply
You pay the employee during the leave period and claim reimbursement from the government. The reimbursement cap is SGD 2,500 per week, for a total cap of SGD 10,000 across the 4 weeks.
From 1 April 2025, it is a statutory offence for an employer to dismiss an employee while the employee is on GPPL.
Childcare leave
Parents with children under 7 years old are entitled to 6 days of paid childcare leave per year. For children aged 7 to 12, the entitlement reduces to 2 days per year. The child must be a Singapore citizen or permanent resident for this entitlement to apply.
Both parents can claim this leave independently. As with other statutory leave types, the employee must have completed at least 3 months of service.
Public holidays
Singapore has 11 gazetted public holidays per year. Employees covered by the Employment Act are entitled to a paid day off on each of these days. If a public holiday falls on a rest day or a non-working day, the employee is generally entitled to an extra day off or a substitution day.
Cpf: singapore’s social security system
The Central Provident Fund is Singapore’s mandatory savings and social security scheme. CPF applies to Singapore citizens and PRs only. It doesn’t apply to foreign employees holding an Employment Pass, S Pass, or other work pass.
CPF contributions go into three accounts for each employee:
- Ordinary Account (OA): Used for housing, education, and investment
- Special Account (SA): Used for retirement savings and retirement-related investments
- MediSave Account (MA): Used for medical expenses and approved health insurance
Both the employer and the employee contribute to CPF monthly, at rates set by the CPF Board. The rates vary by the employee’s age, with higher combined contribution rates for younger workers and lower rates as employees approach and pass retirement age. As an employer, you deduct the employee’s share from their salary and pay the combined employer and employee contributions to the CPF Board by the 14th of the following month.
For Singapore citizen and PR employees, CPF is one of the most significant components of their total compensation. When structuring your offer, you need to account for employer CPF contributions as a cost on top of the agreed salary.
No statutory gratuity
Singapore doesn’t mandate an end-of-service gratuity payment under the Employment Act. There’s no equivalent of a severance lump sum tied to years of service.
The CPF system effectively serves the retirement function that gratuity schemes fill elsewhere. Because employees accumulate CPF savings throughout their working life, they build up retirement funds through every payroll cycle rather than receiving a single payment at the end of employment. Some employers choose to offer contractual gratuity as an additional benefit, but this is a commercial decision, not a legal requirement.
Government-paid leave schemes: how reimbursement works
For both maternity leave (citizen child) and GPPL, the process follows the same structure: you pay the employee first, then claim reimbursement from the government.
Maternity leave (citizen child): reimbursement process
- You pay the employee their full salary during the 16-week leave period
- You claim back the government-funded portion (weeks 9–16) from MSF through the Government-Paid Leave portal
- Reimbursement is capped at SGD 10,000 per 4-week period
Paternity leave: reimbursement process
- You pay the employee during the 4-week GPPL period
- You submit a claim through the Government-Paid Leave portal, administered by MSF
- Reimbursement is capped at SGD 2,500 per week (SGD 10,000 total)
Claims should be submitted promptly after the leave period. Reimbursement is processed in Singapore dollars and paid directly to the employer. Keep payroll records, the employee’s leave dates, and birth certificate details ready when you submit the claim.
Hiring in singapore without a local entity
If you want to hire in Singapore but don’t have a local company registered there, an Employer of Record (EOR) handles employment compliance on your behalf. The EOR employs the worker legally in Singapore, manages CPF contributions, administers statutory leave entitlements, and handles the government reimbursement process for maternity and paternity leave.
This matters for Singapore specifically because CPF administration, MOM compliance, and the government-paid leave claims process all require in-country payroll infrastructure. An Employer of Record gives you access to that infrastructure from day one, without needing to incorporate a subsidiary. When you’re evaluating providers, look at how they handle CPF filings, which EOR services include payroll support for both citizens and PRs, and whether their platform handles government leave reimbursement claims.
FAQs
How much annual leave does an employee get in their first year? An employee covered by the Employment Act is entitled to 7 days of annual leave in their first year of service, provided they have completed at least 3 months. The entitlement increases by 1 day per year, up to a cap of 14 days from year 8 onwards.
Does the 16-week maternity leave apply if the child isn’t a Singapore citizen? No. The full 16-week paid entitlement applies only when the child is a Singapore citizen. If the child is not a citizen, the employee is entitled to 12 weeks: 8 weeks employer-paid and 4 weeks unpaid.
What are the eligibility conditions for paternity leave? The employee must have served at least 3 months with you before the birth, and the child must be a Singapore citizen. For children born or with an EDD on or after 1 April 2025, the entitlement is 4 weeks. You claim reimbursement from the government at up to SGD 2,500 per week.
Does childcare leave apply for non-citizen, non-PR children? No. The statutory childcare leave entitlement of 6 days per year (for children under 7) and 2 days per year (for children aged 7–12) applies only when the child is a Singapore citizen or permanent resident. If the child doesn’t meet that condition, there’s no statutory entitlement, though you can offer it contractually.
Is there a mandatory gratuity or end-of-service payment in Singapore? No. Singapore’s Employment Act doesn’t require a gratuity payment on termination. CPF contributions made throughout employment serve the retirement savings function. Any gratuity you offer is a contractual arrangement, not a legal obligation.
