The Workers Rights 
The Singapore parental leave policy not only helps parents manage their workloads, it also puts a burden on companies to a lesser extent. Under the Government-Paid Leave (GPL) system, the Government will reimburse all payments under the statutory leave up to a limit and under certain conditions.
From the company’s point of view, this scenario can lessen the burden for companies implementing a family-friendly employment policy. It can also support companies to hold their top-notch staff, lessen working disruption as well as create a more level company environment for parents.
1. Reduces the Direct Cost of Parental Leave
Employers have benefited the most by the financial safeguard. As per the government source data, it will fund the relevant cost of the statutory parent leave to limits of the applicable caps.
For instance, the Government Paid Paternity Leave and Shared Parental Leave will cover for up to $2,500 per week (including employer CPF contributions). Eligible maternity and childcare leave payments are also paid back in their statutory limits.
2. Provides Greater Support for SMEs
Long absences from the workplace can pose specific difficulties for small companies that have smaller payrolls as well as staffing programs. The Government reimburses SMEs for the full wage cost of the statutory parental leave, meaning that SMEs do not have to pay a wage on top of their commitments to the parent employee due to statutory parental leave.
Rather, a company can make use of available resources and hire temporary staff instead to cover their required duties, or to provide extra working hours for their regular personnel. This allows for less flexibility if multiple staff members’ time is needed for workers’ wages.
3. Helps Reduce Hiring Bias
Where the employer is facing a substantial wage cost, parental leave costs may impact on recruitment decisions. This can be minimised through the Singaporean government’s sponsored method.
The framework includes maternity, paternity and shared parental leave to provide a more equal way to work for workers who may have post-birth responsibilities. This can contribute to equality across the board for those in the workplace and mitigate the economic consequences of parenthood.
4. Strengthens Employee Retention
Policy measures supporting families are vital to helping keep highly skilled workers. If parents are aware that their statutory parental leave can be combined with a government-backed system, they will be more likely to avail of the option of taking leave without jeopardising their job.
Employers can save on recruitment, onboarding and productivity expenses if they can keep top talent. It also provides an advantage for retaining institutional knowledge within the organization.
5. Makes Leave Administration More Structured
The Government-Paid Leave (GPL) Portal is an employer-friendly, one-stop solution for claiming reimbursements. Employers keep making salary payments as normal payroll practices, and then submit claims to the Department of Workforce Development that meet eligibility requirements.
After the approval, the reimbursement can be made to the registered bank account of the company via the available payment methods. This ensures HR & payroll roles have a more delineated application for parental leave.
What This Means for Employers?
In Singapore, the government-funded parental leave scheme presents a situation in which a significant part of the statutory wage component has been transferred from the sole responsibility of each employer to the government. This can make it simpler for companies to maintain competitive tips and urban revolving doors.
But the advantages for businesses are much broader. The framework can assist in workforce planning, retention, gender representative staffing and have a more predictable way to work with parental absences.
FAQs
In Singapore, is parental leave a 100% paid leave?
Eligible statutory leave payments will be paid up to the statutory limits and conditions available to the Government. Other operation costs incurred by employers due to employee leave may also incur costs exceeding the limits.
What does the policy offer SMEs?
The eligible statutory parental leave reimbursement scheme minimises the direct wage cost of taking the leave. This means that in the case of SMEs, they could dedicate more resources towards short-term coverage in case of employee shortage or temporary staffing.
Does the government pay my maternity leave?
Yes. Within the framework set out there is a reimbursement for eligible maternity leave payments, within the relevant government funding rules and limits.
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