Analyses & Etudes • Publications
How SRS Can Transform Your Workplace - and Why HRs and Business Leaders Should Care
It’s the end of the financial year. One of your top employees—a senior manager who’s been with the company for years—walks into your office. She’s excited about her recent performance appraisal, but there’s a catch. “I’ve been looking into my taxes,” she says with a sigh. “It feels like I’m working so hard, but the tax bill keeps taking a big chunk of it. Is there anything the company can do to help?”
As an HR professional or business owner, offering a competitive salary is only part of the equation. Employees also want to feel financially supported and secure about their future. While you can’t rewrite tax laws, there’s one tool that could make a significant difference—the Supplementary Retirement Scheme (SRS).
Despite its benefits, many employees are unaware of SRS, and even fewer companies include it in their benefits package. By introducing SRS, you can stand out—not just as an employer, but as a partner in your employees’ financial journey.
What SRS Can Do for Your Employees
The Supplementary Retirement Scheme is a voluntary savings programme introduced by the Singapore government to complement the CPF. Its standout feature? Tax savings that your employees will notice immediately.
Immediate Tax Relief
Employees who contribute to their SRS accounts reduce their taxable income:
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Annual Contribution Cap: S$15,300 for Singaporeans and PRs; S$35,700 for foreigners.
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Tax Savings Example: An employee earning $102,000 and contributing $15,300 to SRS reduces their chargeable income to $55,200, saving up to 40% in taxes.
Tax-Advantaged Withdrawals
After reaching the statutory retirement age (64 as of 2026), employees can withdraw their SRS savings in one go or over 10 years, with only 50% of each withdrawal taxable. Early withdrawals, however, incur a 5% penalty and are fully taxable.
Why SRS Matters to You as an Employer
SRS isn’t just a win for employees—it’s a win for your business. Here’s how integrating SRS can transform your organisation:
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Attract and Retain Top Talent Unique benefits like SRS make your company more appealing, especially to high-income earners and expatriates.
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Boost Employee Satisfaction Employees supported in their financial goals are more engaged and loyal. SRS showcases your commitment to their well-being.
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Strengthen Your Employer Brand Forward-thinking benefits position your company as a progressive and caring employer.
How to Bring SRS Into Your Workplace
Implementing SRS is simpler than you think. Here’s how to get started:
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Educate Employees Many employees don’t know how SRS works. Organise workshops or share success stories to demonstrate its benefits and highlight withdrawal rules.
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Simplify Contributions Partner with your payroll team to streamline contributions, making participation hassle-free.
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Lead by Example Championing SRS as an HR leader or business owner shows your dedication to employees’ financial health and aligns with your company’s values.
A Better Workplace Starts Here
Picture your senior manager walking out of your office—not frustrated by taxes but relieved and grateful. She tells colleagues, friends, and potential hires about how her company goes beyond just paying her—it helps her save, plan, and build a secure future.
By Margaret Ferté, Chief Executive Officer, Cléma Risk Solutions
SOURCE: Cléma Risk Solutions
