Singapore employers pay two statutory contributions in 2026 and collect a third, the self-help group funds, on behalf of four community self-help groups.
CPF is 37% of wages for an employee aged 55 or below, split 17% employer and 20% employee, on Ordinary Wages up to the S$8,000 monthly ceiling. SDL is 0.25% of total monthly wages, a minimum of S$2 and a maximum of S$11.25 per employee, and the employer carries the whole cost. The self-help group funds (CDAC, SINDA, MBMF, and ECF) are deducted from the employee's wages by default, with an opt-out, and paid alongside the CPF contributions.
Each rate table below names its official source. We run Singapore payroll on our own local entity, so these are the rates we apply every month.
Most global companies budget for CPF itself. The mistakes we see sit in the details around it:
Failing to comply can result in legal and monetary penalties from the Ministry of Manpower (MOM) and the CPF Board, and, in a tight labor market, it costs you employee trust as well.
In Singapore, an employer makes or collects three statutory payments every month, and they do not work the same way. Two are mandatory: CPF and SDL. The third, the self-help group funds, is deducted from the employee's wages by default, with an opt-out.
| Contribution | Who pays it | Who it covers |
|---|---|---|
| Central Provident Fund (CPF) | Employer and employee both, at different rates | Singapore Citizens and Permanent Residents earning more than S$50 a month |
| Skills Development Levy (SDL) | Employer only | All employees working in Singapore, including foreign employees |
| Self-help group funds (CDAC, SINDA, MBMF, ECF) | Employee, deducted from wages by the employer | Employees in the relevant community, with an opt-out |
The CPF Board enforces CPF and collects SDL on behalf of the Skills and Workforce Development Agency (SWDA). An employee who wants to stop or change a self-help group deduction contacts the self-help group. All three can be paid together through CPF EZPay. (Read more: Singapore Work Visa Guide and Singapore Employment Guide.)
Administered by the CPF Board, the Central Provident Fund (CPF) is Singapore's mandatory social security program funding retirement, housing, healthcare, and education. Employers and employees share CPF contributions for Singapore Citizens and Permanent Residents (PRs) earning over S$50 monthly.
These are the rates from January 1, 2026, for Singapore Citizens and Permanent Residents from their third year of PR status, on total wages above S$750 a month.
| Employee's age | Employer share | Employee share | Total | Maximum total per month on Ordinary Wages |
|---|---|---|---|---|
| 55 and below | 17% | 20% | 37% | S$2,960 |
| Above 55 to 60 | 16% | 18% | 34% | S$2,720 |
| Above 60 to 65 | 12.5% | 12.5% | 25% | S$2,000 |
| Above 65 to 70 | 9% | 7.5% | 16.5% | S$1,320 |
| Above 70 | 7.5% | 5% | 12.5% | S$1,000 |
Source: CPF Board, CPF contribution rate tables from January 1, 2026, Table 1. Rates apply to private sector and non-pensionable employees.
Three thresholds sit underneath that table. Total wages of S$50 or less a month attract no CPF at all. Between S$50 and S$500, the employer pays its share, and the employee pays nothing. Between S$500 and S$750, the employee's share phases in gradually.
New PRs and their employers pay lower, graduated rates in the first two years of PR status. The employer and the employee can jointly apply to the CPF Board to contribute more instead: full employer rates with graduated employee rates (Tables 4 and 5 in the CPF Board's rate tables), or full rates for both (Table 1, the same rates as the main table). The graduated rates, on total wages above S$750 a month:
First year of PR status
| Employee's age | Employer share | Employee share | Total | Maximum total per month on Ordinary Wages |
|---|---|---|---|---|
| 55 and below | 4% | 5% | 9% | S$720 |
| Above 55 to 60 | 4% | 5% | 9% | S$720 |
| Above 60 to 65 | 3.5% | 5% | 8.5% | S$680 |
| Above 65 | 3.5% | 5% | 8.5% | S$680 |
Second year of PR status
| Employee's age | Employer share | Employee share | Total | Maximum total per month on Ordinary Wages |
|---|---|---|---|---|
| 55 and below | 9% | 15% | 24% | S$1,920 |
| Above 55 to 60 | 6% | 12.5% | 18.5% | S$1,480 |
| Above 60 to 65 | 3.5% | 7.5% | 11% | S$880 |
| Above 65 | 3.5% | 5% | 8.5% | S$680 |
Source: CPF Board, CPF contribution rate tables from January 1, 2026, Tables 2 and 3, graduated employer and employee rates. The CPF Board's notice of the rate changes from January 1, 2027, says the graduated rates for first and second year PRs are not changing.
Work out the total first, then the employee's share, then subtract. Under the CPF Board's rounding rules, the total contribution is rounded to the nearest dollar, the employee's share is rounded down to the nearest dollar, and your share is whatever is left.
CPF contributions are due on the last day of the month, and the CPF Board takes enforcement action if they are still unpaid on the 14th of the following month. You can also read more on how CPF contributions affect payroll and cost structure, and see the wider employer picture in our Singapore employer contribution guide.
The Skills Development Levy (SDL) is a mandatory levy that employers pay for all their employees working in Singapore, including foreign employees. The levy goes into the Skills Development Fund, which pays for workforce upgrading programs and training grants. The CPF Board collects it on behalf of SWDA, the statutory board formed from the merger of SkillsFuture Singapore and Workforce Singapore, which is why it is usually paid with the monthly CPF contributions.
SDL is an employer cost. The Skills Development Levy Act places the levy on the employer for each employee, and, unlike CPF, there is no employee share.
| Employee's total monthly wages | SDL payable for that employee |
|---|---|
| Less than S$800 | S$2 (the minimum) |
| S$800 to S$4,500 | 0.25% of total monthly wages |
| More than S$4,500 | S$11.25 (the maximum) |
Sources: CPF Board, Skills Development Levy; SWDA, SDL FAQs; both read September 22, 2026. Total wages for SDL include overtime pay, allowances, commission, and bonuses paid in the month.
Four worked examples, which is usually faster than an SDL calculator:
On a 30-person team where everyone earns more than S$4,500 a month, SDL comes to S$337.50, and you pay S$337, because the total for the whole company is rounded down to the nearest dollar. It is a small line, but it applies to foreign hires too.
Beyond CPF and SDL, two more things show up on a Singapore payroll run.
The four self-help group funds are deducted from the employee's wages, not added to your cost, and you remit them with the CPF payment. Contributions are deducted by default, and an employee who wants to opt out or change the amount contacts the self-help group.
CDAC applies to employees of Chinese descent who are Singapore Citizens or Permanent Residents.
| Monthly total wages | CDAC contribution |
|---|---|
| S$2,000 or less | S$0.50 |
| Above S$2,000 to S$3,500 | S$1.00 |
| Above S$3,500 to S$5,000 | S$1.50 |
| Above S$5,000 to S$7,500 | S$2.00 |
| Above S$7,500 | S$3.00 |
SINDA applies to employees of Indian descent who are Singapore Citizens, Permanent Residents, or Employment Pass holders.
| Monthly total wages | SINDA contribution |
|---|---|
| S$1,000 or less | S$1.00 |
| Above S$1,000 to S$1,500 | S$3.00 |
| Above S$1,500 to S$2,500 | S$5.00 |
| Above S$2,500 to S$4,500 | S$7.00 |
| Above S$4,500 to S$7,500 | S$9.00 |
| Above S$7,500 to S$10,000 | S$12.00 |
| Above S$10,000 to S$15,000 | S$18.00 |
| Above S$15,000 | S$30.00 |
MBMF, the Mosque Building and Mendaki Fund, applies to Muslim employees, whether they are Singapore Citizens, Permanent Residents, or foreign employees.
| Monthly total wages | MBMF contribution |
|---|---|
| S$1,000 or less | S$3.00 |
| Above S$1,000 to S$2,000 | S$4.50 |
| Above S$2,000 to S$3,000 | S$6.50 |
| Above S$3,000 to S$4,000 | S$15.00 |
| Above S$4,000 to S$6,000 | S$19.50 |
| Above S$6,000 to S$8,000 | S$22.00 |
| Above S$8,000 to S$10,000 | S$24.00 |
| Above S$10,000 | S$26.00 |
ECF, the Eurasian Community Fund, applies to employees of Eurasian descent who are Singapore Citizens or Permanent Residents.
| Monthly total wages | ECF contribution |
|---|---|
| S$1,000 or less | S$2.00 |
| Above S$1,000 to S$1,500 | S$4.00 |
| Above S$1,500 to S$2,500 | S$6.00 |
| Above S$2,500 to S$4,000 | S$9.00 |
| Above S$4,000 to S$7,000 | S$12.00 |
| Above S$7,000 to S$10,000 | S$16.00 |
| Above S$10,000 | S$20.00 |
Source: CPF Board, Contributions to self-help groups, read September 22, 2026.
The remote worker trap. If a foreign company employs a Singapore Citizen or PR to work from Singapore, the CPF Board's position is that CPF is still required on their wages, even when the contract is signed overseas. The exception is a temporary stint in Singapore on an overseas-based contract. Not paying is an offense under the CPF Act, and it is one reason foreign companies without a Singapore entity hire through an Employer of Record (EOR), which becomes the employer and pays the CPF.
Bonuses put through the wrong ceiling. The S$8,000 monthly ceiling applies to Ordinary Wages. A bonus or the annual wage supplement is an Additional Wage, and it counts against a separate annual ceiling: S$102,000 minus the Ordinary Wages subject to CPF for the year.
SDL skipped for foreign hires. Employment Pass, S Pass, and Work Permit holders are outside CPF, so payroll teams assume they are outside SDL too. They are not. SDL is payable for all employees working in Singapore.
Self-help group deductions skipped. The CPF Board expects you to deduct them by default. An employee who does not want to contribute, or wants to contribute a different amount, contacts the self-help group.
CPF contributions are due on the last day of the calendar month. The CPF Board takes enforcement action if they are still unpaid on the 14th of the following month, or the next working day when the 14th falls on a weekend or public holiday. For late CPF:
SDL runs on its own rules. It is due within 14 days from the end of each month, and if you pay it late, you may have to pay a penalty of 10% a year on the amount outstanding.
The CPF Board also audits employers to check that contributions were paid accurately, and employees can report late or missing payments to it directly.
Sources: CPF Board, Enforcement and penalties for non-compliance; CPF Board, Skills Development Levy; SWDA, SDL FAQs; all read September 22, 2026.
Foreign companies without a local payroll or human resources team are the most exposed here. Misreading CPF eligibility or SDL coverage as the team grows leads to back payments, interest, and avoidable admin.
Setting up your own local entity is not the only route, and it is not the fastest. The operational differences:
| Feature | Singapore Entity Setup | Slasify EOR |
| Time to Market |
Longer (Company registration with the Accounting and Corporate Regulatory Authority, known as ACRA, then local bank accounts) |
Days (Hire through our existing Singapore entity) |
| CPF / SDL Registration |
Manual (Self-setup with CPF Board and MOM) |
Ready to go (We are already enrolled with the agencies) |
| Who carries the liability |
You do (Your entity bears the fines for late or miscalculated CPF) |
We do (We are the legal employer of record in Singapore) |
We run Employer of Record and Global Payroll services on our own Singapore entity, which means:
A: No. SDL is a levy on the employer, payable for every employee working in Singapore, and it has no employee share. That is the difference from CPF, where the employee's share comes out of wages. Budget SDL as an employer cost.
A: Take 0.25% of that employee's total monthly wages, then apply the floor and the cap. Below S$800 a month, you pay the S$2 minimum. Above S$4,500 a month, you pay the S$11.25 maximum. In between, the percentage stands: S$2,000 of wages is S$5 of SDL. For the monthly payment, add up every employee's SDL and round the total down to the nearest dollar.
A: CDAC runs on five wage bands, from S$0.50 a month for wages of S$2,000 or less up to S$3.00 a month above S$7,500. It is deducted from the employee's wages by default, not paid by you, and it applies to employees of Chinese descent who are Singapore Citizens or Permanent Residents. The full CDAC table, with the SINDA, MBMF, and ECF tables, is in the self-help group section of this guide.
A: For an employee aged 55 or below, the employer share is 17% of wages, against 20% from the employee, for a 37% total. The employer share drops to 16% above 55, 12.5% above 60, 9% above 65, and 7.5% above 70. The S$8,000 Ordinary Wage ceiling caps the employer share on monthly salary at S$1,360 for an employee aged 55 or below. In a month with a bonus, you also pay 17% on the bonus, up to the Additional Wage ceiling for the year.
A: The Ordinary Wage ceiling is S$8,000 a month from January 1, 2026, up from S$7,400 in 2025. The Additional Wage ceiling, which covers bonuses, is S$102,000 minus the Ordinary Wages subject to CPF for the year.
A: No. CPF applies to Singapore Citizens and Permanent Residents earning more than S$50 a month, so Employment Pass, S Pass, and Work Permit holders are outside it. SDL is still payable for Employment Pass, S Pass, and Work Permit holders. It is not payable for genuine independent contractors, because they are not employees. If you are treating someone as a contractor, check that they are working under a Contract for Service rather than an employment contract.
A: For an employee aged 55 or below, the employee's share is 20% of wages, which the S$8,000 Ordinary Wage ceiling caps at S$1,600 a month on salary. It falls with age: 18% above 55 to 60, 12.5% above 60 to 65, 7.5% above 65 to 70, and 5% above 70. First and second year PRs on graduated rates pay 5% to 15%. Nothing is deducted on total wages of S$500 a month or less, and between S$500 and S$750, the employee's share phases in. Round it down to the nearest dollar and deduct it from that month's wages, because the CPF Board does not let you recover a share you missed through your own error from a later month's pay.
A: CPF is due on the last day of the calendar month, and the CPF Board takes enforcement action if it is still unpaid on the 14th of the following month. Late CPF carries 1.5% interest a month with a S$5 minimum, and the CPF Board may offer composition of up to S$1,000 per offense. SDL is due within 14 days from the end of each month, and late SDL carries a penalty of 10% a year on the amount outstanding. You can pay both together through CPF EZPay.
A: Yes. You pay both shares to the CPF Board and are entitled, not obliged, to recover the employee's share from the same month's wages. If you choose not to recover it, you carry the employee's share as well as your own, which raises your total employment cost.
A: Bonuses are. They count as Additional Wages and run against the Additional Wage ceiling, S$102,000 minus the Ordinary Wages subject to CPF for the year, rather than the monthly one. Share options depend on how they pay out. Cash paid to an employee for share options attracts CPF. The proceeds from selling shares the employee holds after exercising options do not, and neither do grants made in kind with no cash payment.
A: For an overpayment, apply to the CPF Board for a refund within one year of the payment date, and return the employee's share to the employee before you apply. The same online service handles payments made under the wrong month, CPF Submission Number, or employee. For an underpayment, pay the shortfall straight away, because the 1.5% monthly interest runs from the day after the original due date. One cause to check first this year is a payroll system still running the 2025 S$7,400 Ordinary Wage ceiling.
A: Yes. For Singapore Citizens and Permanent Residents, an Employer of Record becomes the legal employer in Singapore on your behalf and handles CPF, SDL, the self-help group deductions, and the monthly filing.
We calculate CPF and SDL, deduct the self-help group funds, submit on time, and track the rate changes as MOM and the CPF Board publish them, on our own Singapore entity. That keeps your payroll on the current 2026 figures without your team maintaining a rate table.
Singapore employer CPF in 2026 is 17% for staff aged 55 and below, up to S$1,360 a month. See where CPF starts and the all-in cost at four salaries.
A monthly CPF checklist for Singapore payroll: who is covered, PR graduated (G/G) and F/G rates, paying by the 14th, late interest, and fixing errors.
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