CPF for employers in Singapore

Singapore employers pay CPF for citizen and permanent resident employees. For staff aged 55 and below earning over S$750 a month, the employer share is 17% and the employee share is 20%.

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Accountant reviewing company accounts with a calculator in Singapore

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Central Provident Fund (CPF) is Singapore's mandatory savings scheme. The CPF Board collects it from employers and employees together, and employers carry the filing duty. Once you hire your first citizen or permanent resident, you need to register, compute, submit and pay every month. Rates and rules here were checked on .

Who do you pay CPF for?

You must pay CPF for employees who are Singapore citizens or permanent residents (PRs) and who earn total wages of more than S$50 a month. An employee is anyone employed in Singapore under a contract of service. Full-time, part-time, temporary and contract staff all count, and so do hourly, daily, monthly or piece-rate pay.

Exempt: foreigners, meaning people who are not citizens or PRs, employees of the United Nations organisations located in Singapore, and students who meet exemption criteria. If an employee becomes a PR or citizen, ask them to tell you the date, because the rate changes. PRs have lower graduated rates in their first two years, unless you and the employee jointly apply to pay more.

An employee earning above S$50 but not more than S$500 a month has no employee share. You still pay the employer share.

What are the CPF rates for employers?

The table shows rates from 1 January for citizens and PRs from the third year of PR status, for monthly wages above S$750.

Employee age Employer Employee Total
55 and below 17% 20% 37%
Above 55 to 60 16% 18% 34%
Above 60 to 65 12.5% 12.5% 25%
Above 65 to 70 9% 7.5% 16.5%
Above 70 7.5% 5% 12.5%

The CPF Board announced an increase for senior workers on wages earned from . For employees above 55 to 60, the employer share rises to 16.5% and the total to 35.5%. For those above 60 to 65, the employer share rises to 13% and the total to 26%. Rates for the other age groups do not change.

New rates apply from the first day of the month after the employee's 55th, 60th, 65th or 70th birthday. The CPF Board publishes full tables for other wage bands and for first and second year PRs.

How do you work out the amount?

  1. Pick the rate table for the employee's status: citizen or PR from the third year, or PR in the first or second year.
  2. Find the age group and wage band.
  3. Work out Total Wages for the month: Ordinary Wages plus Additional Wages. Ordinary Wages have a monthly ceiling. Additional Wages have a yearly ceiling equal to S$102,000 less the Ordinary Wages subject to CPF for that year.
  4. Apply the rate to the capped wage. The total includes both shares.
  5. Round the total to the nearest dollar. Always drop the cents on the employee's share.

You may recover the employee's share from their wages when you pay them. The CPF Contribution Calculator on the CPF Board's site does the arithmetic, and CPF EZPay computes the amounts for you when you submit.

How do you register as an employer?

  1. Have a UEN. A company gets one at incorporation. See UEN search and private limited company.
  2. Set up CPF e-Services in Corppass. UEN entities must activate "CPF Services for Employers and Business Partners" and assign users first. See Corppass.
  3. Apply for a CPF Submission Number (CSN). One for each payment type. If approved, you can submit contributions the next calendar day through CPF EZPay.
  4. Choose a payment mode. Direct Debit deducts the amount automatically after you submit and confirm. PayNow QR is the other option.

An individual who trades under their own name uses Singpass for the CSN application.

What is the Skills Development Levy?

The SDL is a separate compulsory levy on all employees, foreign included. It is 0.25% of monthly total wages. The minimum is S$2 for wages under S$800 and the maximum is S$11.25 for wages above S$4,500. Add up the amounts for all employees and round the total down to the nearest dollar.

What if you pay late?

The CPF Board takes enforcement action against employers who miss the 14th of the following month, or the next working day if the 14th is a weekend or public holiday. It charges late payment interest at 1.5% per month from the day after the due date, with a minimum of S$5. It may add a composition amount and prosecute if you do not pay everything by the deadline. Employees and whistleblowers can report late or missing contributions, and the CPF Board audits employers too. Obstructing its inspectors can bring a fine of up to S$10,000.

How does CPF connect to your pass holders and tax?

Employment Pass holders are foreigners, so no CPF is paid for them. See Employment Pass. CPF payments to a local employee are also what lets a company meet the local employee condition for the IRAS cash grant, explained on the corporate tax page. If you want a provider to run the monthly cycle, the payroll services page is the next step.

Independent guide

SingaporeCompanySetupGuide.com is not the CPF Board. We summarise its public pages and show when we last checked them. Confirm any amount with the CPF Board's calculator before you pay. The next page lists payroll providers and has a quote form that passes your request to suitable firms.

Sources

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Questions people ask

Do I pay CPF for foreign employees in Singapore?

No. CPF is payable only for Singapore citizens and permanent residents. The CPF Board lists foreigners as exempt. You still pay the Skills Development Levy for foreign employees working in Singapore, and you must update your records when an employee becomes a PR or citizen.

What is the employer CPF rate in Singapore?

For citizens and PRs from the third year, with monthly wages above S$750, the employer pays 17% when the employee is 55 or below. It falls to 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70.

What is a CPF Submission Number?

A CSN is the identifier employers use to transact with the CPF Board. It combines your UEN, or NRIC or FIN if you trade under your own name, with a payment code. You need a different CSN for each type of payment, such as mandatory contributions.

When is CPF due and what happens if I pay late?

The CPF Board takes enforcement action if contributions are not paid by the 14th of the following month. Late payment interest is 1.5% per month with a minimum of S$5. It can also impose a composition amount or prosecute.

How do I pay CPF contributions?

You submit contributions through CPF EZPay and pay by Direct Debit or PayNow QR. With Direct Debit, the amount is deducted automatically once you confirm your submission. PayNow QR works with corporate and personal bank accounts.

Is there a levy on top of CPF?

Yes. The Skills Development Levy is 0.25% of monthly total wages, with a minimum of S$2 for wages under S$800 and a maximum of S$11.25 for wages over S$4,500. It applies to all employees, including foreigners, and the CPF Board collects it.

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