Cutting staff benefits to save money? Check what they actually cost first

Budget review season has a familiar rhythm. Revenue lines get debated, headcount gets defended, and somewhere near the bottom sit the staff benefits: gym subsidies, team outings, a health talk, a screening provider, a lunchtime yoga instructor. They're easy to trim, because the return is hard to put a number on.

Plenty of companies are doing exactly that. The CIPD's 2025 Asia Employee Benefits Report found that health and wellbeing benefits in Singapore fell by 6 percentage points since 2024, as employers trimmed perks to manage rising costs. It's an understandable response. Medical costs in Singapore rose 15.5% in 2025 alone, according to WTW figures.

The needs behind those benefits don't disappear when the line item does. Anxiety and depression are estimated to cost Singapore around S$15.7 billion a year in lost productivity, according to a Duke University and National University of Singapore study.

AIA Singapore's Corporate Wellness Study found financial wellness support is offered by only 52% of employers, even as employees report rising anxiety about their long-term finances. Cut the benefits that address those worries, and staff notice. So the useful question for Finance isn't only which benefits to cut. It's which ones you need to pay for at all.

Wellness activities are a good place to start, because many of them have a complimentary alternative. WorkWell with AIA is a corporate wellness programme with more than 100 activities, and its standard activities are complimentary. That covers on-site health screenings (blood pressure, blood glucose, cholesterol and BMI), mental wellness workshops, fitness classes and financial literacy talks. Wealthdex coordinates the providers and logistics.

Finance teams like to know how things work in practice, so here's what to expect. Sessions are run by independent, credentialled providers, and some may briefly introduce their own services at the end, with no obligation for anyone to take them up. Employees can also choose optional extras, such as additional screening tests, at their own cost. What your company pays for the standard programme is nothing.

A simple exercise for this budget cycle takes about half an hour. List last year's staff benefits spend by vendor. Mark the wellness items that have a complimentary equivalent under WorkWell. Keep your budget for the benefits that don't, such as company-specific events, or the perks your team particularly values.

For many companies, that exercise frees up part of the benefits budget without reducing what employees receive. Some choose to redirect the savings to the benefits staff ask for most.

It also gives you a clearer answer when leadership asks what the benefits budget delivers. With a planned wellness calendar, you can report attendance per session at a known, near-zero cost per head, which is a stronger position than defending a vendor invoice.

Interested to learn more? Schedule a 15-minute call, we'll show you which items WorkWell could cover at no cost.