CPF for Singapore Employers 2026: Contribution Rates, Deadlines & Rules

Published on: 22 May, 2026

The Central Provident Fund (CPF) is Singapore’s mandatory social security savings scheme. For employers, CPF obligations are non-negotiable — late contributions, under-contributions, and non-payment all attract significant penalties, and IRAS and the CPF Board coordinate closely on enforcement. Yet CPF remains one of the most frequently misunderstood employer obligations, particularly for smaller businesses and foreign-owned companies new to hiring in Singapore.

This guide explains everything Singapore employers need to know about CPF in 2026: who must contribute, the applicable rates, wage ceilings, submission deadlines, and how to avoid the most common costly mistakes.

Who Must Contribute to CPF?

CPF contributions are required for Singapore Citizens and Permanent Residents (PRs) who are employed under a contract of service. The obligation applies to both the employer (who pays a separate employer contribution on top of the employee’s salary) and the employee (whose contribution is deducted from their wages by the employer and remitted to the CPF Board).

CPF does NOT apply to:

Foreign employees holding an Employment Pass, S Pass, Work Permit, or other work authorisation. Foreign employees pay no CPF and employers owe no CPF contributions for them.
Self-employed persons — they make their own Medisave contributions directly.
Students on internships or vacation jobs (with some exceptions).
Casual or intermittent employees earning less than S$50 per month.

Special rules for new PRs: Permanent Residents in their first two years of PR status contribute at a reduced rate (both employer and employee). From the third year onwards, full contribution rates apply.

CPF Contribution Rates 2026

CPF contribution rates depend on the employee’s age and residency status. The rates below apply to Singapore Citizens and third-year (and beyond) PRs:

Employee Age	Employer Contribution Rate	Employee Contribution Rate	Total CPF Rate
55 and below	17%	20%	37%
Above 55 to 60	15%	16%	31%
Above 60 to 65	11.5%	10.5%	22%
Above 65 to 70	9%	7.5%	16.5%
Above 70	7.5%	5%	12.5%

Note: CPF contribution rates for employees aged above 55 have been progressively increased as part of the government’s retirement adequacy agenda. Employers should verify current rates with the CPF Board before each year begins, as rates may be updated.

Rates for New Permanent Residents (First and Second Year)

New PRs in their first two years contribute at graduated (lower) rates. These are set out in the CPF Board’s graduated contribution rate tables, which distinguish between first-year PRs, second-year PRs, and full-rate contributors. Employers hiring new PRs should confirm the employee’s PR anniversary date and apply the correct table.

Ordinary Wage Ceiling and Additional Wage Ceiling

CPF contributions are not calculated on unlimited salary. Two wage ceilings limit the amount of wages subject to CPF contributions.

Ordinary Wage (OW) Ceiling

CPF contributions are calculated only on Ordinary Wages up to the Ordinary Wage Ceiling. From 1 January 2026, the OW ceiling is S$7,400 per month (increased from S$6,800 in 2025 as part of the phased increase announced in Budget 2023).

This means that for an employee earning S$10,000 per month, CPF contributions are calculated only on S$7,400 — not on the full S$10,000. Wages above the OW ceiling do not attract CPF contributions for that month.

Additional Wage (AW) Ceiling

Bonus payments, commissions, and other variable pay components are classified as Additional Wages (AW). The AW ceiling for CPF purposes in any year is:

AW Ceiling = S$102,000 − Total Ordinary Wages subject to CPF in that year

This means that as the OW ceiling rises, the available AW ceiling falls correspondingly. For an employee earning S$7,400 OW every month for 12 months (total OW = S$88,800), the AW ceiling for that year is S$102,000 − S$88,800 = S$13,200. Any bonus paid above S$13,200 in that year would not attract CPF contributions.

CPF Submission Deadlines

Employer CPF contributions must be submitted — and payment must be received by the CPF Board — by the 14th of the following month. If the 14th falls on a Saturday, Sunday, or public holiday, the deadline is the next working day.

For example: CPF contributions for wages paid in April 2026 must be received by the CPF Board by 14 May 2026.

Submissions are made via CPF e-Submit@web (for most employers) or CPF e-Submit@AXS (for smaller employers). Payment can be made by GIRO (recommended for automatic timely payment), PayNow, or other electronic means. Cheque payments are no longer accepted.

Penalties for Late or Incorrect CPF Contributions

The CPF Board takes enforcement seriously. The consequences of late or incorrect CPF contributions include:

Late payment interest — 1.5% per month (or part thereof) on the outstanding amount, calculated from the due date until the date of payment.
Composition fine — the CPF Board may issue a composition fine of up to S$1,000 per offence for late contributions.
Court prosecution — persistent or deliberate non-payment can result in prosecution under the CPF Act. Upon conviction, an employer faces a fine of up to S$10,000 and/or imprisonment of up to 7 years.
Director personal liability — directors and officers of a company can be held personally liable for CPF arrears if the company fails to pay.

If you discover a CPF error (e.g. a past under-contribution due to a miscalculation), voluntary disclosure to the CPF Board before they identify the discrepancy typically results in reduced penalties.

Which Payments Attract CPF Contributions?

CPF is payable on wages — all remuneration in money due or granted to an employee in respect of their employment. This includes:

Basic salary
Overtime pay
Cash allowances (transport, meal, housing — unless specifically excluded)
Commission
Bonuses (subject to the AW ceiling)
Incentive payments

The following payments are not subject to CPF contributions:

Reimbursements for expenses incurred on behalf of the employer (e.g. actual transport or meal claims)
Redundancy payments and retirement gratuities
Payments in lieu of notice on termination
Stock options and shares (generally not wages for CPF purposes)

CPF for Part-Time and Variable-Hour Employees

Part-time employees who are Singapore Citizens or PRs are subject to the same CPF rules as full-time employees — contributions are calculated on their actual wages, with no minimum hours threshold (other than the S$50/month exemption for very low earners). Variable-hours and zero-hours contract employees should have their CPF contributions calculated on actual wages paid each month.

Common CPF Mistakes Employers Make

Based on CPF Board enforcement patterns, the most common employer errors are:

Wrong OW ceiling applied — particularly after the ceiling was raised on 1 January 2026. Payroll systems must be updated promptly each time the ceiling changes.
Misclassifying employees as self-employed — some employers engage workers on “freelance” or “contractor” contracts to avoid CPF obligations, but if the relationship is substantively one of employment, CPF is due. The CPF Board and MOM apply substance-over-form tests.
Applying wrong rate for new PRs — failing to track the PR anniversary date and applying full rates too early (or applying graduated rates for too long) are both errors.
Not updating rates for older employees — payroll teams sometimes fail to update contribution rates when an employee crosses a birthday threshold (e.g. turns 56).
Cash allowances treated as non-CPF-liable — ad hoc allowances paid in cash may still constitute “wages” under the CPF Act, depending on their nature and regularity.
Missing the 14th deadline due to banking delays — GIRO instructions must be set up well in advance; ad hoc transfers sometimes fail to clear in time.

How Raffles Corporate Services Can Help

Getting CPF right every month requires accurate payroll processing, up-to-date rate tables, careful employee classification, and disciplined submission processes. Many smaller businesses find it more cost-effective and reliable to outsource payroll — and the associated CPF compliance — to a specialist firm.

Raffles Corporate Services provides monthly payroll processing and CPF submission services for Singapore companies, including managing OW ceiling updates, new PR graduated rates, and year-end AW ceiling calculations. We also assist with CPF arrears rectification and voluntary disclosure to the CPF Board where past errors have been identified.

You may also find our guides on Accounting and Bookkeeping in Singapore and Singapore Corporate Tax useful reading.

— The Editorial Team, Raffles Corporate Services