CPF Contributions: What Every Singapore Employer Needs to Know
The Central Provident Fund (CPF) is Singapore's mandatory social security savings scheme. Employers are required by law to make CPF contributions for all Singapore citizen and permanent resident employees earning more than S$50 per month. Failure to do so is a criminal offence.
Understanding your obligations, including the rates, the ceilings, the deadlines, and the mechanics, is essential for every employer operating in Singapore.
Who Must Receive CPF Contributions?
CPF contributions are mandatory for employees who are:
- Singapore citizens, or
- Singapore permanent residents (PRs)
- Employed under a contract of service (including part-time employees)
- Earning more than S$50 per month
Foreign employees are not eligible for CPF. Work pass holders (Employment Pass, S Pass, Work Permit holders) do not receive CPF contributions from their employers. CPF is exclusively for Singapore citizens and PRs.
Contribution Rates by Age
CPF contribution rates vary by the employee's age. Both the employer and the employee contribute: the employer's share is an additional cost on top of the employee's gross wages, while the employee's share is deducted from their salary.
| Employee Age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 15.5% | 16% | 31.5% |
| Above 60 to 65 | 12% | 9.5% | 21.5% |
| Above 65 to 70 | 9.5% | 8% | 17.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Rates shown are for Singapore citizens. PR contribution rates differ in the first two years of obtaining PR status, after which they align with citizen rates. Verify current rates with the CPF Board as they are subject to periodic review.
Ordinary Wage and Additional Wage Ceilings
CPF contributions are subject to two wage ceilings that limit the amount on which contributions are calculated:
Ordinary Wage (OW) Ceiling
CPF contributions apply only on the first S$7,400 of an employee's monthly Ordinary Wage (i.e., wages due or granted wholly in respect of the month, such as basic salary). Wages above S$7,400 per month do not attract CPF.
Note: The OW ceiling is being progressively raised to S$8,000 by 2026. Confirm the current applicable ceiling with CPF Board.
Additional Wage (AW) Ceiling
Additional Wages, such as bonuses, commissions, and overtime, are also subject to CPF, up to the AW ceiling of S$102,000 less the total OW subject to CPF for the year. This effectively caps total CPF-liable wages at S$102,000 per year per employee.
How CPF Contributions Are Allocated
Contributions are split across three CPF accounts, each serving a different purpose:
Ordinary Account (OA)
Housing, education, investment, and insurance. The largest share goes here for younger employees.
Special Account (SA)
Retirement savings and investment in retirement-related financial products.
MediSave Account (MA)
Medical expenses, hospitalisation, and approved insurance premiums.
The split between accounts depends on the employee's age and is determined by CPF Board. Employers are not required to calculate the split: the CPF Board distributes contributions automatically.
Paying CPF: Deadlines and Process
CPF contributions must be paid by the 14th of the following month. For example, CPF contributions for wages paid in January must be submitted by 14 February. Payment is made via CPF e-Submit, the CPF Board's online platform.
Employer obligations each month
- Calculate CPF contributions for each eligible employee
- Deduct the employee's share from their wages
- Add the employer's share (an additional cost to the business)
- Submit and pay the total via CPF e-Submit by the 14th of the following month
- Provide employees with itemised payslips showing CPF deductions
Late or missing CPF payments attract a late payment interest charge of 1.5% per month (18% per annum) on the unpaid amount. Persistent non-payment is a criminal offence under the CPF Act and can result in prosecution and imprisonment.
Need help with payroll and CPF compliance?
Adpeco Integrated Services handles payroll processing, CPF submission, and MOM-related compliance for Singapore businesses, so you never miss a deadline.