Who pays CPF
The Central Provident Fund (CPF) is Singapore's compulsory savings scheme. CPF contributions are required on the wages of:
- Singapore Citizens
- Singapore Permanent Residents
It does not apply to foreign workers on Work Permits, S Pass or Employment Pass. For those workers, the Foreign Worker Levy (FWL) applies for Work Permit and S Pass holders (paid by the employer to MOM). EP holders have no direct levy.
Both the employer and the employee contribute. The employer portion is on top of the salary (i.e. a real cost to you); the employee portion is deducted from the salary.
Contribution rates
CPF rates depend on the employee's age. For employees aged 55 and below, the headline 2026 rates remain:
| Age band | Employer (% of OW) | Employee (% of OW) | Total |
|---|---|---|---|
| Up to 55 | 17% | 20% | 37% |
| Above 55 to 60 | 15.5% | 17% | 32.5% |
| Above 60 to 65 | 12% | 11.5% | 23.5% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
OW = Ordinary Wages (monthly basic salary plus allowances, capped at the Ordinary Wage Ceiling, which the government has been progressively raising). AW = Additional Wages (bonuses, AWS, leave encashment) which have a separate annual cap.
Always check the latest rates. CPF rates for older workers are being phased upwards under the gradual increases announced in past Budgets. The CPF Board publishes the current rates at cpf.gov.sg. Always use the live rates when calculating contributions.
CPF for part-timers and casual workers
Part-time and casual employees who are Singapore Citizens or PRs get CPF if their monthly wages exceed S$50. Below that threshold, no CPF is required.
The contribution is calculated on the actual wages paid that month. So a part-timer who earned S$800 in one month and S$400 the next has CPF contributions on each amount separately — not on an averaged figure.
Tiered rates for low-wage workers
For employees earning under S$750 a month, CPF rates are phased in to reduce the marginal cost on very low wages. The phasing differs for the employee and employer portions. For practical purposes, payroll software (or the CPF Board's online calculator) handles this — the table is detailed but mechanical.
Foreign workers: FWL not CPF
Foreign workers are not in the CPF system. Instead:
- Work Permit holders — you pay FWL each month. The levy rate depends on sector (Services has different rates from Construction or Manufacturing), tier (basic-skilled vs higher-skilled) and your quota usage.
- S Pass holders — FWL also applies, at sector-specific rates.
- Employment Pass holders — no levy.
FWL is due monthly through the SGFinDex/GIRO arrangement and the rates are published on MOM's website.
CPF for new PRs
When a foreign worker converts to PR status, they enter the CPF system. For the first two years of PR status, both employer and employee contributions are at graduated rates rather than full rates. The graduated rates phase up over three years from the date PR status is granted.
The employee can elect with the employer to pay at full rates earlier, but the graduated default rates are typical. Many F&B and retail employers do not realise this until a new PR's first payroll cycle and the contribution looks lower than expected.
Ad-hoc shifts and one-off engagements
One thing F&B operators often ask: if I bring in a SC/PR casual for one shift, does CPF apply?
If they are engaged under a contract of service (i.e. they are your employee for that shift, you direct the work, you pay them directly): yes, CPF applies on those wages if their monthly total from you exceeds S$50.
If they are engaged through a gig staffing platform where the platform is the employer for that shift, the CPF responsibility sits with the platform, not with you.
The substance of the relationship determines the obligation, not the label.
Reporting and deadlines
CPF must be paid by the 14th of the month following the month wages were earned. So January wages are CPF-due by 14 February. Late payment attracts late payment interest.
Most employers submit through the CPF Board's e-Submission system. Payroll software typically integrates either via direct e-Submission or by producing the CPF file you upload.
IRAS reporting
Separately from CPF, employers must report each employee's annual income to IRAS through the Auto-Inclusion Scheme (AIS). Most employers with 5 or more employees are required to participate in AIS.
The submission is annual (by 1 March following the year of assessment) and reports the employee's wages, allowances, AWS, deductions and other taxable items. Form IR8A is the underlying source.
Worth knowing: CPF is to the CPF Board. Income tax reporting is to IRAS. They are separate systems. Both deadlines matter, and they do not align with each other or with the calendar payroll month.
Pay calculation with CPF logic, built-in
FlexiWork's PayOut module applies CPF rates per worker (citizen/PR/foreign), per age band, per OW cap. No CPF table lookups by hand.
Start free — 14 daysPractical tips
- Capture status accurately at hiring. SC, PR (with date of grant), Work Permit, S Pass, EP. The CPF treatment flows directly from this.
- Watch the OW Ceiling. If a high earner's monthly OW exceeds the ceiling, only the ceiling counts for CPF purposes. The ceiling has been rising in stages; check the current value.
- Mind the AW limit. The Additional Wages cap is annual, not monthly. If you pay AWS or year-end bonus, make sure the AW contribution does not exceed the cap.
- Don't forget graduated rates for new PRs. The lower rates apply automatically for the first 2 years; software should handle this if you set the PR date correctly.
- Reconcile CPF and IR8A. Annual reconciliation between what was reported to CPF and what was reported to IRAS catches errors before MOM or IRAS does.