Employing someone on a work pass changes the payroll: no CPF, a levy that depends on the pass, SDL, and a tax clearance filing with IRAS when they leave. We run this for employers with foreign staff.
Last reviewed 1 October 2026.
At a glance
| Item | Rule |
|---|---|
| CPF | Applies to Singapore Citizens and PRs only |
| SDL | 0.25% of monthly wages, minimum S$2, maximum S$11.25, applies to all employees including foreigners |
| Foreign worker levy | Usually payable for Work Permit and S Pass holders; the amount depends on sector, pass and quota, and MOM publishes the tables |
| Itemised payslip | Required for employees covered by the Employment Act, with payment or within three working days |
| Tax clearance (IR21) | File at least one month before a non-citizen employee ceases employment; see our IR21 service |
What we handle
- Confirm each employee’s status (citizen, PR, work pass) from their records
- Calculate SDL and, for citizens and PRs, CPF
- Track the levy against MOM’s current table for each pass
- Issue itemised payslips
- Prepare and file Form IR21 and manage the withholding (see below)
IR21 tax clearance when a foreign employee leaves
When a non-citizen employee leaves or goes on an overseas posting, the employer may have to file Form IR21 at least one month before their last day and withhold monies due from the day notice is given. We file the IR21 and manage the withholding and release. The rules, steps and an example are on our IR21 tax clearance services page.
Questions we get asked
Do Employment Pass holders pay CPF? No. CPF applies to citizens and PRs. Confirm levy treatment for each pass type on MOM.
Is SDL payable for foreigners? Yes.
What happens if we miss the IR21 deadline? IRAS can fine an employer for late or non-filing, and an employer who did not withhold may be liable for the employee’s tax. See our IR21 page.
What are the levy rates? MOM publishes them by sector and pass, and they change. We check the current table for each employee.
Sources
- IRAS: tax clearance for foreign and SPR employees (IR21)
- CPF Board: Skills Development Levy
- MOM: itemised payslips
- MOM foreign worker levy pages (current tables)
General information, not professional advice for your specific situation.
Foreign staff on your payroll?
Tell us the passes you hold and any resignations coming up, and we will confirm the payroll and IR21 steps. Check your foreign staff payroll.