Last reviewed 17 October 2026. Rates and rules follow CPF Board, MOM and IRAS guidance.
Paying staff in Singapore is straightforward when salaries are fixed and everyone is under 55. It gets harder with bonuses, employees crossing an age band, foreign staff, and a record IRAS expects at year end. This page sets out the CPF rates, the ceilings, the payslip rules and the due dates in one place, then what we do each month.
At a glance
| Topic | Rule |
|---|---|
| Who pays CPF | Employers, for Singapore Citizen and PR employees. Rates depend on age |
| Monthly Ordinary Wage ceiling | S$8,000 from 1 January 2026 |
| Annual CPF salary ceiling | S$102,000 |
| Skills Development Levy (SDL) | 0.25% of monthly wages, minimum S$2, maximum S$11.25 per employee, for all employees including foreigners |
| CPF due date | The last day of the calendar month. CPF takes enforcement action if payment is not made by the 14th of the following month |
| Late CPF interest | 1.5% per month from the first day after the due date, minimum S$5 |
| Payslips | Itemised, for employees covered by the Employment Act, given with payment or within 3 working days |
| Retirement age | Minimum retirement age is 64 from 1 July 2026 |
CPF contributions
CPF rates depend on the employee’s age. These are the rates for Singapore Citizens and Singapore PRs from their third year of PR status, from 1 January 2026, on monthly wages above S$750:
| Employee’s age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
CPF Board says rates will rise from 1 January 2027, but its page does not yet list the new figures. Our posts on the CPF rate increases coming in 2027 and Budget 2026 go through what has been announced. First- and second-year PRs have their own arrangements, with graduated rates available by joint application.
Example (illustration only). ABC Pte Ltd’s employee is a Singapore Citizen aged 52, paid S$5,000 a month.
| Item | Amount |
|---|---|
| Employer CPF at 17% | S$850.00 |
| Employee CPF at 20% | S$1,000.00 |
| Total CPF paid to CPF Board | S$1,850.00 |
| Employee’s pay after CPF, before tax | S$4,000.00 |
| SDL at 0.25% of S$5,000, capped at S$11.25 | S$11.25 |
Wage ceilings and bonuses
CPF applies to wages up to the Ordinary Wage ceiling of S$8,000 a month, and there is an annual CPF salary ceiling of S$102,000. Bonuses and other variable pay are Additional Wages, and they are limited by the annual ceiling rather than the monthly one. This is the part of payroll most often miscalculated, so tell us before a bonus is paid.
Skills Development Levy
SDL is 0.25% of each employee’s monthly wages, with a minimum of S$2 for those earning under S$800 and a maximum of S$11.25 for those earning over S$4,500. It applies to all employees working in Singapore, including foreigners, and is paid together with CPF. An employer with only foreign employees pays SDL separately, as CPF Board’s page explains.
Foreign employees
CPF applies only to Singapore Citizens and PRs. Work Permit and S Pass holders usually attract a monthly foreign worker levy, which depends on sector, pass type and quota, and Employment Pass holders have neither CPF nor levy. SDL applies to all of them. MOM publishes the levy rates and quota rules, and they change when a worker’s status or qualification changes, so we track each employee’s pass.
Payslips
Employers must issue itemised payslips to all employees covered by the Employment Act. A payslip must show, unless not applicable:
- the names of the employer and employee
- the payment date and the start and end dates of the salary period
- basic salary, including the basic rate and the hours, days or pieces for hourly, daily or piece-rated workers
- fixed and ad hoc allowances
- other payments such as bonuses, rest day pay and public holiday pay
- fixed and ad hoc deductions
- overtime hours and overtime pay
- total net salary paid
Give it with the payment, or within three working days of it. On termination or dismissal, give it with the outstanding salary.
When CPF is due, and what late means
CPF is due on the last day of the calendar month. CPF Board takes enforcement action if it has not been paid by the 14th of the following month, or the next working day if the 14th is a weekend or public holiday. Interest of 1.5% a month runs from the first day after the due date, with a minimum of S$5.
For example, S$3,000 of CPF paid 19 days into the interest month carries interest of S$3,000 × 1.5% × 19/30, which is S$28.50 before rounding. We submit well before the 14th so that bank timing never matters.
Year end: AIS
Employers submit their employees’ employment income to IRAS by 1 March under the Auto-Inclusion Scheme, which lets IRAS pre-fill employees’ tax returns. Whether your company must join depends on IRAS’s rules, which we check for you. See our AIS submission page. When payroll is accurate through the year, the AIS return is a compilation and not a reconstruction.
Changes to plan for
The minimum retirement age is 64 from 1 July 2026. CPF rates for older employees are due to rise from 1 January 2027, and the retirement age change and the CPF change affect the same group of staff. See our posts on the retirement age change and payroll and common payroll and CPF mistakes.
What we do each month
| Step | What we do |
|---|---|
| 1 | Collect changes: joiners, leavers, raises, unpaid leave, overtime and bonuses |
| 2 | Work out each employee’s CPF by age band, and the SDL |
| 3 | Check foreign staff for levy and pass changes |
| 4 | Issue itemised payslips and the payroll summary for your approval |
| 5 | Submit CPF before the 14th, and post payroll into your books |
If nothing has changed, you send us nothing. New hires need a date of birth, NRIC or work pass details, and a bank account. We usually do this alongside your monthly bookkeeping, so payroll costs and CPF liabilities land in the books in the month they arise.
What we need from you
- Each employee’s date of birth, for the right age band.
- Work pass details for foreign staff.
- Notice of mid-month changes before the payroll date.
Questions we get asked
We only have two or three staff. Is outsourcing worth it? Sometimes. With fixed salaries and no bonuses or overtime, CPF Board’s online tools may be enough. It starts to pay off with bonuses, foreign staff on levies, employees nearing 55 or 60, or when you would rather not spend a day each month on it. We will tell you which applies.
Do I need to pay CPF for myself as a director? It depends on how you are paid and whether you are a Singapore Citizen or PR. CPF applies to a salary paid to you as an employee, and directors’ fees are treated differently. Many owner-directors use both, and we explain the effect on CPF savings and personal tax.
Do foreign employees need CPF? No. CPF applies only to Singapore Citizens and PRs. Work Permit and S Pass holders usually attract a levy, and SDL applies to all employees.
What happens if a CPF payment is late? Interest of 1.5% a month runs from the first day after the due date, and CPF Board can take enforcement action if payment has not been made by the 14th of the following month. If past contributions are overdue, tell us and we will calculate what is owed.
How are bonuses handled? As Additional Wages, within the annual ceiling. Tell us before a bonus is paid so we can work out CPF for both employer and employee.
Is our salary data confidential? Only the people working on your payroll can see it, and we handle personal data in line with Singapore’s Personal Data Protection Act. Payslips can be sent directly to your staff.
What do you need each month? Only changes. If nothing changed, nothing needs sending.
What happens when an employee moves into a new age band? The new rate applies from the month after the birthday month. Someone turning 56 in March moves to the above-55 rate from April’s salary. We track birthdays.
Talk to us about your payroll
Tell us how many staff you have, who is Singapore Citizen, PR or on a work pass, and whether you pay bonuses, and we will tell you what a monthly payroll looks like for you. Ask our payroll team a question.
Sources
- CPF Board, How much CPF contributions to pay (updated 7 October 2026)
- CPF Board, When is the due date for CPF contributions?
- CPF Board, How does CPF Board calculate interest on late payment? (updated 12 March 2026)
- CPF Board, What is the Ordinary Wage (OW) ceiling? (updated 14 August 2026)
- CPF Board, Skills Development Levy (updated 2 July 2026)
- MOM, Itemised pay slips
- MOM, Retirement
- IRAS, Auto-Inclusion Scheme for employment income
This is general information, not professional advice for your specific situation. Rates and rules can change, so confirm them with CPF Board, MOM and IRAS before relying on them.