Benefits

Benefits add up to about 37% for every payroll dollar, and comprise about 27%
of the total compensation package.
Little evidence on the impact benefits have on
attraction/retention/retirement/performance
There is more regulation of benefits than of direct pay
Benefits have become almost obligatory for employers to provide
Benefits are complex for employees to understand
Reasons for Benefits Growth
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Law mandating benefits passed during and after the Depression

Wage and price controls instituted during WW2 and labour shortages
Tax treatment of benefits as compared to personal income
Buying group v individual insurance
Organised Labour
Employer differentiation

Benefit Programmes: Social Security

Private Group Insurance
Retirement
Pay for time not worked
Family-friendly policies
1+3) Social security includes provision for old-age insurance, unemployment
insurance, disability insurance, hospital insurance, and supplementary medical
insurance. Social Security benefits are also free from federal tax. Currently, full
benefits begin at age 65 (reduced benefit can begin at age 62)
2) PGI offered at discretion of employers, not legally required. But group rates
are generally lower in costs because of economies of scale, the ability to pool
risks, and greater bargaining power of a group.
4) in Western Europe, 30 days of mandated vacation is common. In US, 10 days
is common. Sick leave programmes also often provide full salary replacement for
a limited period of time.

Employee benefits in Singapore

1) Rest Days. Employers must provide at least one rest day every week
without pay. If they work on their rest day, pay one days pay if half a
day or less. Pay two days pay if more than half a day. (half all amounts if
work was done at the employees request)
2) Public Holidays. Employees are entitled to 11 paid public holidays per
year. If they work on a PH, should be given an extra days salary or a
replacement day off.
3) Sick Leave. Employee are entitled to paid outpatient sick leave and
hospitalisation leave if they have worked at the company for at least 3

months, obtained a MC from company/govt doctor and informed employer

of the sick leave within 48 hours
4) Annual Leave. Employees are entitled to paid annual leave if they have
worked at the company for at last 3 months.
5) CPF Contributions. Employers required to pay CPF contributions to all
SG/PR employees earning more than $50/month. Applicable even if parttime/ad-hoc/contract/probation period
6) Maternity & Childcare Leave. Female employees employed for more
than 3 months entitled to 16 weeks of paid maternity leave. Also, if child
<7years, entitled to 6 days of childcare leave
Choose a Benefit package that is tailored for that specific industry. Use industrial
norms to evaluate premium rates rather than just demographics of a single
company. A well informed provider shares important information about cost in
the industry
Employees choose the type of health care plan they want, employers will
contribute a fixed amount. Employees then bear the amount over and above.
This promotes preventive care
Other passive health/wellness benefit programmes: provide gym membership,
nutritional information, healthy food in canteens, adequate rest and relax areas,
down time, refreshment stops, etc.
Companies should also anticipate and prepare for new healthcare reform
measures. Keep themselves up to date about the rising cost in medical and
pharmaceutical products.