In this article, we cover some important aspects that are related to having medical coverage for your staff in Singapore as well as the benefits that come with the medical coverage.
Why is it important to have medical coverage for staff in Singapore?
1. Tax deduction
By getting medical coverage for your staff, you will be eligible for tax deduction. Since expenses to cover a staff medical insurance policy is considered as a cost that contribute to generation of your company’s revenue, the premium payments would therefore qualify for tax deduction. For more information, you may refer to this website.
2. Medical insurance is compulsory for foreign workers
If your company is planning to hire foreign workers, you are required to have medical insurance for them. Every foreign worker employed by you must have their own medical insurance plan. If you fail to provide insurance details, a work permit application cannot be processed for the foreign worker.
Take note that the medical coverage cannot be less than SGD 15,000 per year and it should cover hospital bills for work and non-work related as well as day surgery and inpatient care.
3. Mitigating risk involving medical bills
Singapore is known for its expensive medical bills and healthcare. If you buy a medical coverage for all your employees, you can leverage the insurance benefits, rather than reimbursing medical expenses of your staff. This way, you will not have to worry about high medical bills and can spend money on other costs that are more important to grow your business.
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