Home
 / 
Blog
 / 
Flexi Benefits Detailed Guide in Singapore

Flexi Benefits Detailed Guide in Singapore

A comprehensive guide to flexible benefits schemes in Singapore, covering types of benefits, tax implications, healthcare coverage, and tips for maximizing your flexi benefits allowance.
Written By
Siyu Chen
HR Editor at Gutsy

Table of Content

Share This

Singapore's competitive job market necessitates attractive employee benefits packages. Flexible benefits schemes, also known as flexi benefits or cafeteria plans, are increasingly popular, offering employees customized benefits tailored to their individual needs and preferences. This article provides a comprehensive overview of flexi benefits in Singapore, addressing common questions and concerns.

What are Flexible Benefits Schemes in Singapore?

A flexible benefits scheme allows employees to choose from a variety of benefits, creating a personalized compensation package. Instead of a standardized package, employers allocate a set amount of "benefit credits" or a budget. Employees then select benefits from a menu of options, essentially "spending" their credits on the benefits most valuable to them. This recognizes that employees have diverse needs at different life stages.

How Flexi Benefits Work:

  • Employer Allocation: The employer provides a fixed allowance or budget.
  • Menu of Benefits: A range of options is presented, including core and optional benefits.
  • Customization: Employees choose their benefits based on personal needs.
  • Pre-tax Contributions (in some cases): Certain benefits may allow for pre-tax contributions, reducing taxable income.
  • Enrollment Period: Selections are typically made during a specific enrollment period.

Advantages:

  • Increased Employee Satisfaction: Employees choose benefits relevant to them.
  • Cost Efficiency for Employers: Reduces waste on unused benefits.
  • Tax Advantages (Potential): Some benefits offer tax advantages.
  • Improved Recruitment and Retention: Attracts and retains top talent.

Common Flexi Benefits Offered in Singapore

The specific benefits offered vary by company, but common examples include:

Core Benefits:

  • Health Insurance: Medical, dental, and hospitalization coverage.

Optional Benefits:

  • Wellness Programs: Gym memberships, fitness classes, health supplements.
  • Annual Leave: Trading annual leave for other benefits or purchasing additional leave.
  • Education & Training: Training allowances, educational sponsorships.
  • Lifestyle Benefits: Holiday expenses, recreation memberships, meal/transport vouchers.
  • Childcare Vouchers: Reimbursement for childcare expenses.
  • Family Wellness: Medical expenses for family members, maternity expenses.
  • Emotional & Mental Health: Psychiatric/psychological treatment.
  • Financial Wellness: Personal insurance, financial planning.
  • Health Screening: Executive health screenings, optical expenses.
  • Alternative Medicine: Reimbursement for TCM or homeopathy.
  • Maternity & Dental Expenses: Expenses beyond maternity leave insurance plan limits.

Tax Implications of Flexi Benefits in Singapore

The taxability of flexi benefits depends on the specific benefit. Generally:

Taxable Benefits:

Non-Taxable Benefits:

  • Certain benefits-in-kind may be exempt, such as some medical expenses.

CPF Contributions:

CPF contributions are payable on certain cash payments under flexi benefits schemes, but specific exclusions apply, such as genuine reimbursements for expenses incurred by the employee.

Maximizing Your Flexi Benefits Allowance

To make the most of your benefits, consider these key strategies:

  1. Understand the Benefit Structure – Familiarise yourself with your annual coverage limits, the specific benefits included, and any exclusions.
  2. Know How Benefits Are Utilised – Determine whether your benefits are provided as a fixed lump sum, a reimbursement system, or a combination of both, as this affects how you can claim them.
  3. Be Aware of Tax and CPF Implications – Certain benefits may be taxable or impact your CPF contributions. Understanding these implications helps with financial planning and compliance.
  4. Consider Pro-Ration Rules – If you’re a new hire or leaving the company mid-year, your entitlements may be pro-rated. Clarifying this ensures you plan your benefits usage accordingly.
  5. Leverage Efficient Claims Systems – Use digital claims platforms or automated systems to streamline the submission process and avoid unnecessary delays.
  6. Align Benefits with Personal Needs – Select benefits that align with your lifestyle, health requirements, and financial goals to maximise their value.
  7. Plan and Budget Your Benefits Usage – Distribute your benefits wisely throughout the year to avoid running out unexpectedly or missing out on entitlements.

By proactively managing your benefits, you can optimise their value and ensure they support your personal and professional well-being.

Can Unused Flexi Benefits Be Carried Forward?

The carry-forward of unused flexi benefits is not legally mandated. It depends entirely on the company's specific policies. While some companies may allow carry-forward of certain benefits, it's not a standard practice.

Healthcare Expenses Covered Under Flexi Benefits

Flexi benefits often cover a wide range of healthcare expenses, including:

  • Medical expenses beyond insurance limits.
  • Dental expenses beyond insurance limits.
  • Maternity expenses beyond standard entitlements.
  • Alternative medicine treatments.
  • Wellness programs and screenings.
  • Optical expenses.
  • Mental health services.

How Flexi Benefits Complement Mandatory Benefits

Flexi benefits enhance existing mandatory benefits by:

  • Increasing employee satisfaction and retention.
  • Improving work-life balance.
  • Offering cost-effective management of benefits.
  • Ensuring compliance with labor laws.
  • Catering to diverse workforce needs.
  • Providing a competitive advantage.

Family Member Coverage Under Flexi Benefits

Many schemes allow for family member coverage, often including spouses and children, and sometimes parents. The specific coverage varies by company policy.

Frequency of Changes to Flexi Benefits Selection

The frequency of changes is determined by company policy. It's typically during an annual enrollment period or in the event of qualifying life events. Check your company's policy for details.

Benefit Category Example Benefits Tax Implications (Generally) CPF Implications (Generally)
Health Medical, Dental, Optical Potentially exempt May or may not require CPF
Wellness Gym memberships, health screenings Taxable May or may not require CPF
Lifestyle Meal vouchers, transport allowances Taxable Usually requires CPF
Education Training courses, professional memberships Potentially exempt (job-related) May or may not require CPF
Disclaimer: This article was made with the help of AI and should not be used as a reference for legal matters. Please always double-check with official sources to ensure accuracy.

Designed for Blue & Pink Collar Workers

02.
  • Focused on Blue & Pink Collar workers’ unique challenges.
  • Overcomes tech and language barriers with intuitive, accessible design.
  • Enhances efficiency by addressing specific workforce needs.

Keep Reading

Singaporean HR officer and an employee discussing the ex gratia payment together in an office

Ex Gratia Payment Explanation in Singapore

A comprehensive guide to ex gratia payment in Singapore. Learn the eligibility, tax treatment, benefits, and other important informations....

Read more
Retired employees and young employees are gathered in a office

Jobs for retirees in Singapore: A Comprehensive Guide to opportunities and benefits

As Singapore faces an ageing population, more retirees are choosing to stay in the workforce beyond their retirement age. Some seek financial stabilit...

Read more
Singaporean employer and employee discussing over employee insurance package

Effectively manage employee insurance in Singapore companies 

Providing employee insurance is a crucial aspect of workforce management in Singapore. It not only ensures compliance with legal requirements but also...

Read more

Family Care Leave Guide in Singapore: Types & Eligibility Included

Comprehensive guide to family care leave policies in Singapore, including maternity, paternity, childcare, and caregiver leave entitlements, eligibili...

Read more
3 colleagues are chit-chatting in office setting

Severance Pay Complete Guide in Singapore

Learn about severance pay in Singapore - eligibility, calculation methods, tax implications, and what to do if you don't receive it. A comprehensive g...

Read more

Enjoy Reading More?
Join Our Newsletter!

Request a demo