# The India Employee Benefits Stack for Singapore companies

> Singapore parents are used to CPF carrying retirement and medical savings, with employer group cover on top. In India the employer carries more directly: EPF on full salary for most foreign staff, gratuity after five years, maternity pay, and the whole of health cover above ₹21,000 a month.

By Akshay Golechha, Chief Business Officer at Plum (https://www.linkedin.com/in/akshaygolechha/). Published by Plum (https://www.plumhq.com). Canonical: https://www.plumhq.com/india-benefits-stack/singapore. Updated 2026-10-05. Part of The India Employee Benefits Stack: https://www.plumhq.com/india-benefits-stack.

## In short

- There is no equivalent of CPF in India. Retirement maps to EPF at 12% employer plus 12% employee on basic plus DA, health to ESI below ₹21,000 a month and Group Health Insurance above it, and there is no housing account.
- Singapore's employer-paid group hospitalisation and surgical cover becomes the main health layer in India, because above ₹21,000 a month the employer's statutory health obligation is zero. Group Health Insurance is voluntary in law, and candidates hired at ₹8 LPA and above expect it.
- India adds a cost Singapore law does not impose: gratuity of 15 days' last drawn salary per year of service after five years. And India's 26 weeks of maternity leave are paid by the employer, where Singapore's Government reimburses at least half of 16 weeks.

## Questions

### Do Singapore staff seconded to India have to contribute to EPF?

Usually, yes. India and Singapore have no social security agreement, so foreign nationals on Indian payroll are International Workers who join EPF from day one, at 12% plus 12% of full salary with no ₹15,000 ceiling. EPFO has treated Singapore citizens working in India purely as temporary workers as excluded under CECA 2005; confirm this before relying on it. Permanent residents and third-country staff do not qualify.

### Is there an Indian equivalent of MediShield Life or MediSave?

No. Employees earning up to ₹21,000 a month are covered by ESI, funded at 3.25% by the employer and 0.75% by the employee. Above that line there is no statutory health cover and no medical savings account. Employers buy Group Health Insurance instead; the India median sum insured is ₹5,00,000 and global startups in India carry ₹10,00,000.

### Does India have a statutory severance or retirement payment?

Yes: gratuity. Establishments with 10+ employees owe 15 days' last drawn salary per year of service after five continuous years, or one year for fixed-term employees under the 2025 Labour Codes, capped at ₹20 lakh. Unlike Singapore's retrenchment benefit it is statutory, not discretionary, and it is usually funded through an insured gratuity scheme.

### Who pays for maternity leave in India?

The employer. The Maternity Benefit Act gives 26 weeks of full pay for the first two children and 12 weeks from the third; ESI covers it only for ESI members. There is no government reimbursement like Singapore's for the later weeks. Establishments with 50+ employees must also provide a crèche, and there is no statutory paternity leave under central law.

### Is group health insurance compulsory in India?

No. Group Health Insurance is not legally required, but candidates hired at ₹8 LPA and above expect it, and most insurers need a minimum group of 7. The employer's premium is deductible under Section 36(1)(ib), is not a perquisite for the employee under Section 17(2), and attracts 18% GST.

### How does the time difference affect benefits administration?

Singapore is 2½ hours ahead of India and neither country uses daylight saving, so the working days overlap for most of the day. Even so, name someone in India to sign off insurance endorsements, claims escalations and renewals, so a hospital admission or a policy change never waits for an approval from Singapore.

## What changes when you come from Singapore

### Assignees from Singapore and India's EPF

**The rule.** Foreign nationals employed in India are International Workers under EPF. They must join from day one, with contributions on full salary: the ₹15,000 wage ceiling does not apply.
**Singapore and India.** India and Singapore have no social security agreement. Separately, EPFO has treated Singapore citizens working in India purely as temporary workers, who are not Indian permanent residents, as excluded employees under the 2005 CECA (circular of 14 March 2017). Confirm it still applies before relying on it. Singapore permanent residents and third-country staff do not qualify.

### Mapping Singapore benefits to India

**At home.** CPF of up to 17% from the employer and 20% from the employee on wages up to S$8,000 a month, MediShield Life for citizens and permanent residents, employer-paid group hospitalisation and surgical cover, and work injury insurance.
**In India.** EPF for retirement, ESI or Group Health Insurance (GHI) for health, the Employees' Compensation Act plus Group Personal Accident for injury, and gratuity on exit: fund it through an insured gratuity scheme rather than carrying it as an unfunded liability.

### Overlap between Singapore and India

**Time difference.** Singapore is 2½ hours ahead of India all year (neither country uses daylight saving), so most of the Indian working day overlaps Singapore's.
**What to set up.** Agree who in India signs off endorsements, claims escalations and renewals, so nothing waits for headquarters' business hours.

### India–Singapore tax treaty

**Treaty.** India and Singapore have a double taxation avoidance agreement, signed in 1994 and amended by protocols, most recently in 2016. Short visits are usually exempt from Indian tax under the treaty's 183-day and employer conditions; check the exact article before relying on it.
**Secondments.** Long secondments can create a permanent establishment for the parent. Structure recharges and employment contracts with a tax advisor before staff move.

## What you call it in Singapore, and what it is called in India

There is no CPF in India. Singapore's single account, which carries retirement savings, housing and MediSave for citizens and permanent residents, splits in India into separate obligations: EPF for retirement, ESI for health and injury below ₹21,000 a month, and a statutory gratuity on exit. Above that wage line India has no statutory health cover at all, so the group hospitalisation and surgical plan a Singapore employer treats as a supplement becomes the main layer of protection.

| At home in Singapore | In India | What changes for the employer |
| --- | --- | --- |
| Central Provident Fund (CPF): Mandatory savings for citizens and permanent residents: 37% of wages up to age 55 (17% employer, 20% employee) on wages up to S$8,000 a month in 2026. | EPF and EPS (Employees' Provident Fund and Pension Scheme) | 12% employer plus 12% employee on basic plus DA, with 8.33% of the employer share going to the pension scheme. The statutory ceiling is ₹15,000 a month, but most MNC subsidiaries contribute on full basic, and International Workers contribute on full salary. |
| Medical savings account (MediSave): The CPF account that pays hospital bills and approved insurance premiums for members and their families. | No equivalent. Group Health Insurance (GHI) pays hospital bills | Indian employees have no personal medical savings to draw on. Hospital costs fall on GHI or on the employee's own pocket, which is why the sum insured and parental cover matter more than in Singapore. |
| National health insurance (MediShield Life): Basic hospitalisation insurance for citizens and permanent residents, paid from MediSave. Foreigners are not covered. | ESI for employees earning up to ₹21,000 a month; nothing above that line | Above ₹21,000 a month the employer's statutory health obligation is zero. GHI is voluntary in law but expected by candidates hired at ₹8 LPA and above. The India median sum insured is ₹5,00,000; global startups in India carry ₹10,00,000. |
| Private top-up plan (Integrated Shield Plan): A private insurer's top-up to MediShield Life for private hospitals or higher ward classes, usually bought by the individual. | A higher sum insured or a top-up layer on the GHI policy | In India the top-up is the employer's decision, not the employee's. Moving the sum insured from the ₹5,00,000 median toward ₹10,00,000 is the usual way to match a Singapore standard of care. |
| Group hospitalisation and surgical insurance (GHS): Employer-paid group cover for hospital and surgical bills, often with GP and specialist outpatient cover added. | Group Health Insurance (GHI) | The closest like-for-like benefit, but in India it is the main layer, not a supplement. GHI is inpatient-led, with outpatient cover as an add-on. Most insurers need a minimum group of 7, and parents are about 40% of claims by relationship in Plum's data. |
| Work injury compensation (WICA): Work Injury Compensation Act: insurance is compulsory for all manual workers and for non-manual staff earning S$2,600 a month or less. | Employees' Compensation Act 1923 (or ESI where covered) plus Group Personal Accident (GPA) | The Act covers employees not in ESI, and the employer insures it. GPA is the usual add-on, with Group Term Life at 3 to 5 times CTC common for white-collar staff. |
| Foreign worker medical insurance (MOM medical insurance): Compulsory inpatient cover of at least S$60,000 a year for each Work Permit and S Pass holder. | No equivalent rule for foreign staff | Indian employment law sets no minimum health cover for foreign employees. International Workers are usually added to the GHI policy, or kept on a global plan with an India-admitted GHI alongside for cashless admission. |
| Annual leave (Annual leave (Employment Act)): 7 days in the first year, rising by one day a year to 14 days from the eighth year. | Earned leave under the state Shops and Establishments Act (offices) or the Factories Act (factories) | Earned leave is typically 12 to 18 days a year plus casual and sick leave, and varies by state. Public holidays also vary by state, with three national holidays. |
| Sick and hospitalisation leave (Sick leave / hospitalisation leave): 14 days' paid outpatient sick leave and up to 60 days' hospitalisation leave, inclusive, after six months' service. | Sick and casual leave under state law, separate from earned leave | There is no national 60-day hospitalisation entitlement. Long illness is handled through state sick-leave quotas, accumulated earned leave and the employer's own policy, with hospital bills on GHI. |
| Maternity leave (Government-Paid Maternity Leave (GPML)): 16 weeks. For the first two children the employer pays the first 8 weeks and the Government reimburses the last 8, capped. | Maternity Benefit Act: 26 weeks of full pay for the first two children, 12 weeks from the third | Paid by the employer and not reimbursed (ESI covers it for ESI members). A crèche is required at 50+ employees. Set the GHI maternity sub-limit against about ₹1 lakh for a normal delivery and ₹1.25 lakh for a C-section. |
| Paternity and shared parental leave (GPPL / Shared Parental Leave): 4 weeks of government-paid paternity leave, plus 10 weeks of shared parental leave for children born from 1 April 2026. | No statutory paternity leave under central law | Any paternity leave in India is company policy. If headquarters wants a group-wide minimum, write it into the Indian leave policy so it is applied consistently. |
| Retrenchment benefit: Not required by law. The tripartite norm is 2 weeks to 1 month's salary per year of service, after two years. | Gratuity under the Payment of Gratuity Act | Statutory, not discretionary, and paid on resignation, retirement or termination after five continuous years (one year for fixed-term employees): 15 days' last drawn salary per year of service, capped at ₹20 lakh. Provision it from day one. |

## What Singapore companies get wrong when they set up in India

1. **Our seconded staff stay on CPF and skip Indian EPF.** India and Singapore have no social security agreement. Foreign nationals on Indian payroll join EPF from day one on full salary, with no ₹15,000 ceiling. Only Singapore citizens working purely as temporary workers have been treated as excluded under CECA; Singapore permanent residents and third-country staff never were.
2. **Contributions apply to total pay, as CPF does.** EPF and gratuity run on basic plus DA, not total pay. Since 21 November 2025, if allowances excluded from wages exceed 50% of total remuneration, the excess is added back into wages for EPF, gratuity and other statutory calculations. Salary structure now drives statutory cost.
3. **A wage ceiling caps EPF the way S$8,000 caps CPF.** For International Workers the ₹15,000 EPF wage ceiling does not apply: 12% employer plus 12% employee on full salary. For Indian staff the ceiling is statutory, but most MNC subsidiaries contribute on full basic anyway.
4. **Employer medical cover tops up a national scheme, as at home.** Above ₹21,000 a month there is no national scheme to top up: the employer's statutory health obligation is zero. Group Health Insurance is the whole of the cover, so its sum insured and parental cover carry the weight MediShield Life carries in Singapore.
5. **There is no exit payment unless we retrench.** Gratuity is statutory: 15 days' last drawn salary per year of service after five continuous years, one year for fixed-term employees under the 2025 Labour Codes, capped at ₹20 lakh. It is paid on resignation too. Provision it from the first payroll.
6. **The Government will reimburse most of maternity pay.** In India the employer pays 26 weeks of full pay for the first two children, and 12 weeks from the third, under the Maternity Benefit Act. ESI covers it only for ESI members. There is no reimbursement for salaried staff.
7. **Family cover means spouse and children.** Parents are the largest claims category by relationship in India, about 40% of claims in Plum's data. Whether to cover them is the biggest single design choice in a GHI policy, and Indian candidates ask about it.
8. **Work injury insurance works the way WICA does.** The Employees' Compensation Act 1923 covers employees not in ESI, and the employer insures it. Group Personal Accident is the usual add-on, with Group Term Life at 3 to 5 times CTC common for white-collar staff.

## Singapore vs India, benefit by benefit

| Benefit | Singapore | India |
| --- | --- | --- |
| Retirement savings | CPF: 37% of wages up to age 55 (17% employer, 20% employee), on wages up to S$8,000 a month. | EPF: 12% employer plus 12% employee on basic plus DA; International Workers on full salary. |
| Who contributes | Citizens and permanent residents only. Foreign employees are outside CPF. | Establishments with 20+ employees. Foreign nationals join from day one as International Workers, with no wage ceiling. |
| Statutory health cover | MediShield Life for citizens and permanent residents, paid from MediSave. | ESI for employees earning up to ₹21,000 a month. Nothing above that line. |
| Employer health plan | Group hospitalisation and surgical cover, usually employer-paid, often with GP and specialist visits. | Group Health Insurance: voluntary in law, expected at ₹8 LPA and above, minimum group of 7 with most insurers. |
| Foreign staff health | Compulsory inpatient cover of at least S$60,000 a year for Work Permit and S Pass holders. | No statutory minimum. Add them to GHI, or keep a global plan with an India-admitted GHI alongside. |
| Work injury | WICA insurance compulsory for manual workers and non-manual staff earning up to S$2,600 a month. | Employees' Compensation Act 1923 for staff not in ESI, insured by the employer; GPA added voluntarily. |
| Exit payment | None by law. Retrenchment benefit of 2 weeks to 1 month per year of service is a tripartite norm. | Gratuity, statutory after five years: 15 days' last drawn salary per year, capped at ₹20 lakh. |
| Maternity | 16 weeks; the Government reimburses the last 8 weeks for the first two children and all 16 after that, capped. | 26 weeks of full pay for the first two children, 12 from the third, paid by the employer. |
| Paternity | 4 weeks government-paid, plus 10 weeks of shared parental leave from April 2026. | No statutory paternity leave under central law. |
| Annual leave | 7 days in the first year, rising to 14 days from the eighth year. | Earned leave typically 12 to 18 days a year plus casual and sick leave, set by state law. |
| Sick leave | 14 days outpatient and up to 60 days' hospitalisation leave after six months. | Separate sick and casual leave quotas under state Shops and Establishments Acts. |

## What headquarters is used to

Singapore splits health costs between personal MediSave savings, MediShield Life and employer group cover. Headquarters expects the employer plan to sit on top of a national layer; in India there is no national layer above ₹21,000 a month.

- **80%** of Singapore's population use public healthcare services
- **Up to 35%** rise in MediShield Life premiums, phased in from 2025 to 2028
- **10% to 20%** co-pay on outpatient and specialist visits under typical employer plans
- **1 in 4** Singaporeans expected to be older than 65 by 2030

Source: Benefits Beyond Borders 2025, Plum's report on benefits in the economies investing in India (Singapore chapter, citing the Commonwealth Fund, BMJ Public Health and Population Health Metrics). https://www.plumhq.com/benefits-beyond-borders

## Staff seconded from Singapore

Staff seconded from Singapore usually keep an international medical plan, but an India-admitted GHI is still worth adding: it gives cashless admission at network hospitals with no deposit. There is no India–Singapore social security agreement. Singapore citizens working in India purely as temporary workers have been treated as excluded from EPF under CECA; confirm this with EPFO before relying on it. Singapore permanent residents and third-country nationals join EPF from day one on full salary.

## Where Singapore companies set up in India

- **Mumbai, Maharashtra.** DBS Bank India's head office, UOB's Indian branch and PSA's container terminal at Nhava Sheva. Maharashtra's Shops and Establishments Act sets leave for office staff.
- **Bengaluru, Karnataka.** CapitaLand's International Tech Park Bangalore, Mapletree's Global Technology Park and Grab's technology centre. Most Singapore-linked hiring here is salaried tech staff above the ESI ceiling.
- **Chennai, Tamil Nadu.** CapitaLand's International Tech Park Chennai, PSA's Chennai container terminal and data-centre campuses including ST Telemedia's. Tamil Nadu has its own Shops and Establishments leave rules.
- **Hyderabad, Telangana.** CapitaLand's International Tech Park Hyderabad and the technology tenants around it. Telangana sets its own leave rules for offices.
- **Pune, Maharashtra.** CapitaLand's International Tech Park Pune and data-centre capacity. Pune is one of the seven cities benchmarked in the hub guide.

Singapore companies with operations in India include DBS Bank India, CapitaLand, Sembcorp, Olam, Wilmar, PSA International, Singapore Airlines, ST Telemedia Global Data Centres, UOB, Mapletree, Grab.

## Benchmarks: what MNCs and GCCs offer in India

From [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits), Plum's report on 15,312 benefit plans, 5,20,100 claims and 74,543 checkups from Plum's FY26 book.

- **1.6×** MNC and GCC benefits spend per employee in India, against a funded Indian startup (nearly 3× a local Indian business). ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **43%** of MNCs and GCCs in India are Holistic Leaders: deep insurance plus real breadth of healthcare beside it. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **₹7,50,000** median MNC/GCC sum insured, covering parents or in-laws, with ₹1,00,000 maternity cover and no copays or sub-limits. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3))
- **~2%** of payroll buys India's top-quartile plan, against roughly 15% in the US, 10–25% across Europe and 8–15% across APAC. ([source](https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage))

### India's top-quartile plan against Singapore

| | India | Singapore |
|---|---|---|
| Benefits budget, share of payroll | ~2–3.5% (2% typical), plus 13% PF and 4.81% gratuity | ~12–15% (APAC 8–15% band), plus 17% CPF |
| What the employee still pays | Nothing: no deductible, no copay or coinsurance, no room-rent limit, no waiting period | Inpatient $40–$590 a day; 10–20% co-pay on outpatient and specialist care; vision capped at $200 |
| Who is on the policy | Employee, spouse, up to 4 children, 2 parents or in-laws, LGBTQ+ and live-in partners | Employee; dependants usually a paid add-on |

India's top-quartile plan is the only one of the seven that includes parents, and treatments cost 60–90% less than in the US, Europe or Australia. Source: https://www.plumhq.com/standard-of-employee-benefits#s2-3-coverage

## Further reading on plumhq.com

- [How MNCs structure health insurance for Indian subsidiaries](https://www.plumhq.com/blog/mnc-health-insurance-india-subsidiary-structure): Global programmes, local policies and who signs what.
- [Do you need to match headquarters' benefits in India?](https://www.plumhq.com/blog/gcc-match-headquarters-benefit-standards-india): Where to mirror the parent plan, and where India needs its own design.
- [Insurance for expatriate employees in India](https://www.plumhq.com/blog/insurance-coverage-expatriate-employees-gcc-india): Covering seconded staff alongside the local plan.
- [Group insurance vs ESI: a guide for employers](https://www.plumhq.com/blog/group-insurance-vs-esi-employers-guide): Who must be in ESI, and where group health insurance takes over.
- [How to calculate gratuity in India](https://www.plumhq.com/blog/how-to-calculate-gratuity): Formulas, worked examples and a free calculator.
- [The Standard of Employee Benefits 2026–27](https://www.plumhq.com/standard-of-employee-benefits): Benchmarks from 4,500+ Indian employee health plans.

Sources: CPF Board, CPF contribution rates from 1 January 2026 (cpf.gov.sg); Ministry of Manpower, Employment Act leave, maternity and paternity leave, retrenchment advisory, work injury compensation and foreign worker medical insurance (mom.gov.sg); Ministry of Health, MediShield Life Council recommendations on premiums and claim limits (moh.gov.sg); EPFO circular on Singapore citizens under the India–Singapore CECA 2005, 14 March 2017; India–Singapore Double Taxation Avoidance Agreement and 2016 Protocol (incometaxindia.gov.in); Code on Social Security 2020 and Code on Wages 2019, in force 21 November 2025; Benefits Beyond Borders 2025 (Plum), Singapore chapter.