CPF contribution rates Singapore employers need to know vary by employee age, residency status, and wage type. Get them wrong and you’re looking at interest charges, penalties, and a correction process nobody wants. This guide covers exactly what Singapore employers need to know: who pays, how much, on what, and by when.
Who CPF applies to
CPF contributions are only required for Singapore citizens and permanent residents (PRs). Foreign nationals on any work pass — Employment Pass, S Pass, Work Permit, Dependant’s Pass with LOC — do not attract CPF contributions.
PRs in their first two years of PR status pay at reduced rates. After two years, full rates apply.
CPF contribution rates Singapore employers must apply
Rates are determined by the employee’s age. Both the employer and employee contribute. The employer’s share is an additional cost on top of the employee’s salary, not deducted from it.
Full rates (Singapore citizens and PRs in year 3+)
| Employee age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55–60 | 15% | 16% | 31% |
| Above 60–65 | 11.5% | 10.5% | 22% |
| Above 65–70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
PR rates — 1st year of PR status
| Employee age | Employer | Employee |
|---|---|---|
| 55 and below | 4% | 5% |
| Above 55–60 | 4% | 5% |
| Above 60–65 | 3.5% | 5% |
| Above 65–70 | 3.5% | 5% |
| Above 70 | 3.5% | 5% |
PR rates — 2nd year of PR status
| Employee age | Employer | Employee |
|---|---|---|
| 55 and below | 9% | 15% |
| Above 55–60 | 9% | 15% |
| Above 60–65 | 6% | 12.5% |
| Above 65–70 | 6% | 7.5% |
| Above 70 | 6% | 5% |
From the 3rd year of PR status onwards, full citizen rates apply. Employers and PRs can jointly apply to CPF Board to pay at full rates from the start.
What CPF is calculated on
Ordinary Wages (OW): base salary, regular overtime, recurring allowances. CPF contribution rates Singapore employers apply are calculated on ordinary wages up to the Ordinary Wage (OW) ceiling:
- S$6,800 per month from 1 January 2025
- S$7,400 per month from 1 January 2026
No CPF contributions are due on ordinary wages above the ceiling.
Additional Wages (AW): bonuses, AWS, commissions paid quarterly. The Annual Wage (AW) ceiling = S$102,000 minus total ordinary wages on which CPF was already paid in that year. Any bonus above the AW ceiling does not attract CPF.
What is not subject to CPF
Not all payments are wages for CPF purposes. Excluded items include genuine expense reimbursements, retirement gratuities, redundancy payments, death gratuities, and annual leave encashment on cessation of employment.
When CPF must be paid
CPF contributions must be paid by the 14th of the following month. Late payment attracts interest at 1.5% per month (18% per annum) from the due date. CPF Board actively monitors payments and will issue late payment interest notices. Persistent non-payment can result in prosecution of directors personally.
The true cost of an employee: worked example
This trips up many first-time employers. The cost is more than just the salary.
Example: 35-year-old Singapore citizen, S$5,000/month salary
| Item | Amount |
|---|---|
| Gross salary | S$5,000 |
| Employee CPF (20%, deducted from gross) | (S$1,000) |
| Net salary to employee | S$4,000 |
| Employer CPF (17%, additional cost) | S$850 |
| Skills Development Levy (0.25%) | S$12.50 |
| Total monthly cost to employer | S$5,862.50 |
The employer’s true monthly cost for a S$5,000/month employee is approximately S$5,862. Over a year, that’s S$70,350. Financial modelling for headcount must use fully-loaded cost, not gross salary.
Rate changes to plan for
The Ordinary Wage ceiling has been on a planned increase: S$6,000 until December 2024, S$6,800 from January 2025, S$7,400 from January 2026, S$8,000 from January 2027. Contribution rates for workers aged 55–70 have also been progressively increasing. Make sure your payroll system picks up rate changes automatically.
What happens when you get CPF wrong
Underpayment: The employer is liable for the shortfall plus late payment interest. Directors are personally liable if the company fails to pay. Wrong rate: Overpayments must be recovered through an administrative process; underpayments create liability. Employee deduction without remittance: A criminal offence under the CPF Act.
Questions about your CPF contribution rates?
Abacus manages payroll and ensures the correct CPF contribution rates Singapore regulations require are applied for every employee, every month. Get in touch if you’re not sure whether your calculations are correct.
For a full overview of payroll obligations beyond CPF rates, see our payroll services Singapore guide.
