Short answer: CPF is payable on an intern’s allowance when the intern is a Singapore Citizen or Permanent Resident working under a contract of service, unless the intern is a student of a qualifying institution on training approved by that institution. Separate rules then decide SDL, work passes for foreign students, IR8A reporting and work injury cover.
Intern CPF in Singapore is the question most employers get wrong when they take on students for a summer, a semester or a polytechnic attachment. What matters is whether there is a contract of service (an employer-employee relationship), whether the school has approved the placement as training, and whether the student is local or foreign. This guide covers CPF, the Skills Development Levy (SDL), Employment Act and work injury coverage, work passes and tax reporting, with a checklist at the end.
Key facts at a glance
- CPF is payable for Singapore Citizen and PR employees earning total wages of more than S$50 a month, including interns under a contract of service.
- CPF exemption applies to students of qualifying institutions (universities established by law, ITE, polytechnics and certain MOE-subsidised programmes) employed for training approved by their institution; the employer must keep the institution’s documents.
- SDL is 0.25% of monthly total wages, with a minimum of S$2 (wages below S$800) and a maximum of S$11.25 (wages above S$4,500), unless the Skills Development Levy (Exemption) Order 2014 applies.
- Student’s Pass holders at listed institutions may work in term time without a work pass only for up to 16 hours a week, or on an institution-run internship that counts towards graduation.
- The Training Employment Pass lasts up to 3 months and is not renewable; the Work Holiday Pass allows up to 6 months for eligible students and graduates aged 18 to 25.
- Paid interns under an employment contract must be included in IR8A or AIS reporting by 1 March of the following year, subject to a narrow subsistence-allowance exception.
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.
Is an intern an employee in Singapore?
An intern is an employee if there is a contract of service with your company. If there is, the Employment Act, the Work Injury Compensation Act (WICA) and CPF rules apply in the usual way, subject to the specific student exemptions below.
The Ministry of Manpower (MOM) confirms that students on internships are covered by the Employment Act and WICA if a contract of service establishes an employer-employee relationship. There is no single conclusive test; MOM looks at factors such as who controls the work, who pays the wages, who provides the tools and workplace, and whether the person works on their own account. A paid intern who works set hours at your office, under your supervision, will usually be an employee.
If the internship is 14 days or more and the intern is covered by the Employment Act, you must issue written key employment terms (KETs) within 14 days after the start of employment.
When is intern CPF payable in Singapore?
CPF is payable on all wages, including allowances, bonus and overtime, for a Singapore Citizen or PR intern under a contract of service. The exception is a student of a qualifying institution who is employed for training approved by that institution.
The CPF Board’s intern guidance says contributions are payable for all local employees, including interns, where there is an employer-employee relationship. In consultation with the Ministry of Education (MOE), employers can be exempted from CPF on an intern’s wages if the student is:
- enrolled in an institution or programme subsidised by MOE; and
- employed for training approved by their educational institution.
The CPF Board’s list of exempted students covers universities established by law, ITE and the polytechnics (training approved by the institution, in term or holidays); overseas tertiary students required by their institution to train in Singapore for not more than 6 months, with written confirmation; MOE-subsidised full-time programmes at LASALLE and NAFA; and MOE school students working in the school holidays, other than those who have completed A levels.
If the internship is not endorsed by the institution, CPF remains payable as for any part-time or temporary employee. For an exempt internship, including any approved extension, you must obtain and keep the institution’s documents. Foreign interns do not attract CPF at all, because CPF applies only to Singapore Citizens and PRs. Our CPF guide for Singapore employers covers rates and deadlines once CPF is payable.
Do you pay Skills Development Levy for interns?
Usually yes, because SDL applies to all employees working in Singapore, including foreign employees. It is not payable for interns who fall within the Skills Development Levy (Exemption) Order 2014.
Under paragraph 2 of that Order, no SDL is chargeable for:
- a matriculated or registered student of ITE, Nanyang Polytechnic, Ngee Ann Polytechnic, Republic Polytechnic, Singapore Polytechnic, Temasek Polytechnic, NTU, NUS, SIT, SMU, SUTD or SUSS who is employed for training approved by the institution;
- a student of an overseas tertiary institution required by the institution to train in Singapore for not more than 6 months, provided the employer submits to the Skills and Workforce Development Agency (SWDA) a letter from the institution confirming the student’s enrolment and the training requirement; and
- a registered student of a school registered under the Education Act (other than one who has completed A levels) employed during the gazetted school holidays.
The CPF and SDL exemption lists are worded differently, so check each separately. Where SDL is payable, it is 0.25% of total monthly wages, subject to the S$2 minimum and S$11.25 maximum, and is paid with your CPF submission. For foreign interns, CPF EZPay does not auto-compute SDL, so you must key it in. More detail is in our SDL guide for employers.
Can you hire a foreign student as an intern?
Yes, but only through one of MOM’s routes. A Student’s Pass holder at a listed Singapore institution may work without a work pass in limited cases. Other foreign students need a Training Employment Pass, a Training Work Permit or a Work Holiday Pass.
MOM’s work pass exemption for foreign students allows a full-time student holding a Student’s Pass issued by the Immigration and Checkpoints Authority (ICA) to work during school term without a work pass only if the work is for a maximum of 16 hours a week, or is under an industrial attachment or internship programme conducted by the student’s institution. The attachment can be compulsory or elective, but it must contribute towards graduation requirements. During vacations, students aged 14 and above from a wider list of institutions can work without a work pass. Exchange students are not allowed to work.
| Route | Who it suits | Key conditions (MOM) |
|---|---|---|
| Student’s Pass work pass exemption | Full-time students at listed Singapore institutions | Term time: up to 16 hours a week, or an institution-run internship counting towards graduation. Vacation: allowed for listed institutions, age 14 and above. |
| Training Employment Pass | Foreign students on an attachment that is part of their course; trainees from a foreign office | Student must be at an acceptable institution or earn a fixed monthly salary of at least S$3,000. Valid up to 3 months, not renewable. |
| Training Work Permit | Unskilled or semi-skilled foreign trainees | Practical training for up to 6 months; levy, quota and security bond rules apply. |
| Work Holiday Pass | Undergraduates and graduates aged 18 to 25 from universities in 10 listed countries or regions | Up to 6 months; programme capacity of 2,000 pass holders at any one time. |
MOM states that it is an offence for a foreign student to work in Singapore without a valid work pass, so confirm the route before the first day. Our Training Employment Pass guide covers that route in more depth. Applications are handled by our associated MOM-licensed agency at Singapore Employment Agency.
Are interns covered by work injury compensation?
Yes, if the intern works under a contract of service. MOM confirms that WICA covers students on internships where there is an employer-employee relationship.
WICA insurance is compulsory for all employees doing manual work, whatever their salary, and for non-manual employees earning S$2,600 or less a month (excluding overtime, bonus, annual wage supplement, productivity incentive payments and allowances). Failure to insure is an offence carrying a fine of up to S$10,000, jail of up to 12 months, or both. If an intern is not insured and makes a valid claim, you still have to pay compensation. See our WICA employer’s guide.
Is an internship allowance taxable, and must it go on the IR8A?
In most cases, yes. IRAS requires employers to report the employment income of students who sign an employment contract in Singapore and are paid for their services, either through the Auto-Inclusion Scheme (AIS) or on a Form IR8A given to the intern.
IRAS allows one narrow exception. You do not need to submit the allowance if both of these conditions are met:
- the student must undergo the business or industrial attachment with your organisation as a compulsory part of their educational programme; and
- the student is paid only subsistence allowances to meet daily expenses and board and lodging in Singapore.
A stipend paid for work done does not fit that exception. Reporting is due by 1 March of the year after the income is paid. AIS submission is mandatory for employers with 5 or more employees in 2026, employers who received a notice to file electronically, or employers already registered for AIS. Interns on employment contracts count towards that headcount. Our IR8A and AIS guide walks through the filing.
Can the company deduct internship allowances for tax?
Yes, ordinarily. Allowances paid to interns working in your business are staff costs, and IRAS treats salaries as revenue expenses deductible when they are wholly and exclusively incurred in producing income.
An expense counts as incurred when the legal liability to pay arises, so accrue allowances owed at year end. Keep the internship agreement, the school’s approval letter and payment records together; they support the CPF and SDL exemptions as well as the deduction.
Employer checklist for hiring an intern
This assumes a paid intern under a contract of service.
| Item | Local intern (SC or PR) | Foreign intern |
|---|---|---|
| Contract and KETs | Written terms; KETs within 14 days if engaged 14 days or more and covered by the Employment Act | Same |
| School approval letter | Obtain and keep if claiming CPF or SDL exemption | Needed for the SDL exemption and to show an attachment counts towards graduation |
| CPF | Payable unless the student exemption applies | Not payable |
| SDL | Payable unless the Exemption Order applies | Payable unless exempt; key in manually in CPF EZPay |
| Work pass | Not needed | Student’s Pass exemption, TEP, TWP or Work Holiday Pass |
| WICA insurance | Compulsory if manual work or salary S$2,600 or less | Same |
| IR8A or AIS | Report by 1 March unless the subsistence-allowance exception applies | Report by 1 March unless the same exception applies |
Our free compliance tools can help you check other employer deadlines.
Frequently asked questions
Do I pay CPF for an unpaid intern?
CPF is payable only where total wages exceed S$50 a month, so no contribution arises without wages. Employment Act and WICA coverage still depend on whether there is a contract of service.
Is a polytechnic intern on a school-arranged attachment CPF exempt?
Generally yes, if the student is matriculated or registered at the polytechnic and the training is approved by the polytechnic. Keep the polytechnic’s documents on file, because the CPF Board requires them for exempt internships.
Can a foreign university student intern with us during their summer holidays?
If they hold a Student’s Pass from an institution on MOM’s vacation list, they can work during the vacation without a work pass. A student from an overseas university usually needs a Training Employment Pass or a Work Holiday Pass.
Does the intern’s school have to be in Singapore for the CPF exemption?
No. The CPF Board also exempts students of overseas tertiary institutions who are required by that institution to train in Singapore for not more than 6 months, provided they give you written confirmation from the institution.
Do interns count towards the AIS 5-employee threshold?
An intern under an employment contract is an employee, so count them. If your headcount reaches 5 or more in 2026, AIS submission for the 2026 income year is mandatory.
Need help with this?
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Last reviewed: 20 October 2026. The Editorial Team, Raffles Corporate Services.