Paying staff is only half the job for a Singapore employer. For most local employees, the company must also pay CPF contributions every month, on time and at the correct rate. This article on CPF Contributions: Employer Obligations, Rates and Payment Deadlines explains who must contribute, how the amounts are worked out and when payment falls due.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
Getting CPF wrong is one of the more common compliance slips among growing companies. Late or short payments attract interest and can lead to enforcement action, so it pays to understand the basics before the first hire is made. The rates below are general guidance for 2026 and are not a substitute for advice on your own payroll.
Who this applies to
CPF contributions are mandatory for employers who hire Singapore Citizens and Singapore Permanent Residents (PRs) under a contract of service. The obligation applies whether the employee is full-time, part-time or on a short contract, provided the wages are paid for work done in Singapore.
- Singapore Citizens: full contribution rates apply from the first day of employment.
- Singapore PRs: graduated rates usually apply in the first two years of PR status, with full rates from the third year, unless the employer and employee jointly apply for full rates earlier.
- Foreigners on an Employment Pass, S Pass or Work Permit: no CPF contributions are payable.
- Company directors who are paid as employees: contributions apply to director fees that are treated as wages for work done.
Key rules and requirements in Singapore
The Central Provident Fund Act sets out the rules, and the CPF Board administers them. Contributions are calculated on two kinds of wages.
Ordinary Wages and Additional Wages
Ordinary Wages (OW) are wages earned for work done in the month, such as basic salary, regular allowances and overtime pay. Additional Wages (AW) are payments that are not for the month in particular, such as annual bonuses, commissions paid at intervals longer than a month and leave pay in lieu.
Wage ceilings
CPF is only payable up to a ceiling. The OW ceiling is SGD 8,000 per month from 1 January 2026. AW is subject to an annual limit, which is SGD 102,000 less the total OW subject to CPF for the year. Wages above these limits do not attract further CPF.
Contribution rates for 2026
For employees aged 55 and below earning more than SGD 750 a month, the employer contributes 17 per cent and the employee 20 per cent, a total of 37 per cent. Rates fall as employees age, and for the 55 to 65 age bands they were raised from 1 January 2026. As a rough guide, the employer rate is 16 per cent for ages above 55 to 60, 12.5 per cent above 60 to 65, 9 per cent above 65 to 70 and 7.5 per cent above 70. Lower earners pay reduced or no contributions, with employee-share deductions phased in between SGD 500 and SGD 750.
Payment deadline and late penalties
CPF for a given month must reach the CPF Board by the 14th of the following month. Late payment attracts interest at 1.5 per cent per month on the outstanding amount, and the CPF Board may take further action against persistent defaulters. Employers file and pay through the CPF EZPay system, using GIRO, PayNow or internet banking. The employee’s share is deducted from wages, but the legal responsibility for paying the full amount rests with the employer.
Step-by-step process
- Confirm each employee’s residency status and date of birth, since both determine the rate.
- Separate the month’s pay into Ordinary Wages and Additional Wages.
- Apply the correct rates and the wage ceilings to work out the employer and employee shares.
- Deduct the employee’s share from salary, and show both shares on the payslip.
- Submit the CPF contribution file and pay the total to the CPF Board by the 14th of the next month.
- Keep payroll and CPF records for at least five years, as CPF inspectors and IRAS may ask for them.
Common mistakes to avoid
- Treating a PR as a citizen, or the reverse, so that the wrong rate is applied in the first two years.
- Forgetting to adjust the rate when an employee crosses an age band, usually from the month after the birthday.
- Applying the AW ceiling incorrectly when a large bonus is paid, which leads to over- or under-contribution.
- Leaving out allowances or overtime that count as wages, or treating genuine reimbursements as wages.
- Paying a day or two late because the 14th falls on a weekend, and then incurring interest.
- Deducting the employee share but failing to pay it over, which is a serious offence.
Practical examples
Take a Singapore Citizen aged 35 who earns SGD 5,000 a month. The employer contributes 17 per cent, or SGD 850, and the employee contributes 20 per cent, or SGD 1,000, making a total of SGD 1,850. The employee takes home SGD 4,000 before tax, and the company pays SGD 1,850 to the CPF Board by the 14th of the next month.
Now take an employee who earns SGD 9,000 a month. Because the OW ceiling is SGD 8,000, CPF is calculated on SGD 8,000 only. The same employee receives a SGD 12,000 bonus in December. The AW ceiling for the year is SGD 102,000 less SGD 96,000 of OW, which is SGD 6,000, so only SGD 6,000 of the bonus attracts CPF. Employers who miss this step often over-pay or under-pay.
A third case involves a new PR in their first year of PR status. The graduated rates mean the employer and employee shares are lower than for a citizen, so payroll needs to be updated when the second and third years begin. Many companies miss this change and continue to apply the old rate.
How a corporate secretary can help
A corporate secretary in Singapore usually works alongside the finance team to keep statutory obligations in order, and CPF is part of the wider compliance picture. Raffles Corporate Services can support with payroll processing, CPF submissions, IRAS filings such as the Auto-Inclusion Scheme for employment income, and accounting and tax support. We can also help review whether directors’ fees and allowances have been treated correctly, and help you set up a monthly calendar so that deadlines are not missed.
Frequently Asked Questions
Do I need to pay CPF for part-time employees?
Yes, if they are Singapore Citizens or PRs working under a contract of service. Contributions are based on the wages paid, so the amount may be small, but the obligation still applies.
What happens if I pay CPF late?
Interest of 1.5 per cent per month is charged on the unpaid amount. The CPF Board can also take enforcement action, particularly where late payment is repeated.
Is CPF payable on foreign employees?
No. Employment Pass, S Pass and Work Permit holders are not covered by CPF. Other obligations, such as the Skills Development Levy and foreign worker levy where relevant, may still apply.
Is CPF payable on bonuses?
Yes. Bonuses are Additional Wages and attract CPF up to the annual AW ceiling.
Can an employer pay the employee’s share of CPF?
An employer may agree to bear the employee’s share, but the amount then counts as additional taxable wages for the employee and must be reported accordingly.
Key takeaways
- CPF is mandatory for Singapore Citizens and PRs, but not for foreign pass holders.
- Rates depend on age and residency status, and wage ceilings limit the amount payable.
- Payment is due by the 14th of the following month, with interest on late payments.
- Ordinary Wages and Additional Wages are treated separately, so bonuses need care.
- Good payroll records and a monthly checklist prevent most CPF errors.
Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.
If you would like to find out more about how Raffles Corporate Services can assist with your company’s compliance and corporate secretarial requirements, please get in touch with the team at [email protected].
Yours sincerely,
The editorial team at Raffles Corporate Services
Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.