Singapore payroll and CPF for employers — Step-by-step walkthrough

Singapore payroll and CPF for employers is the monthly cycle of paying salaries, deducting and contributing Central Provident Fund (CPF) for eligible employees, and meeting the related tax and statutory filings. Employers must contribute CPF for Singapore Citizens and Permanent Residents earning more than S$50 a month, and contributions are due by the 14th of the following month.

Singapore Secretary Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.

Singapore payroll and CPF for employers

What payroll and CPF cover

Running payroll in Singapore means computing gross pay, applying statutory deductions, paying net salary, and remitting CPF contributions for eligible staff. The Central Provident Fund Act 1953 establishes the CPF contribution framework, while the Employment Act 1968 governs core terms such as salary payment timing and itemised payslips.

Alongside CPF, employers report employee remuneration to the Inland Revenue Authority of Singapore (IRAS) and, for many employers, submit this directly through the Auto-Inclusion Scheme.

Who must contribute CPF

CPF is payable for employees who are Singapore Citizens or Permanent Residents. Contributions are required where the employee earns more than S$50 in a calendar month, with the employee share kicking in at higher wage levels. CPF is not payable for foreign employees on work passes; their pass conditions govern instead.

The Central Provident Fund Act 1953 places the obligation on the employer to deduct the employee’s share and pay both shares to the CPF Board. Failure to pay on time attracts late-payment interest and enforcement.

Contribution rates and wage ceilings, with numbers

For employees aged 55 and below, the total CPF contribution is 37% of wages, comprising 17% from the employer and 20% from the employee. Rates step down progressively for older employees. The Ordinary Wage ceiling, the cap on monthly wages attracting CPF, has been rising in stages and reaches S$8,000 from 1 January 2026.

There is also an annual total wage ceiling that limits CPF on bonuses and additional wages. Employers should apply the rate table for the employee’s age band and ensure the correct ceiling is used for the month, as mid-year ceiling changes are common.

Costs, timelines and filings, with numbers

CPF for a month must be paid by the 14th of the following month; where the 14th falls on a weekend or public holiday, payment is due by the next working day. Late payment attracts interest charged at 1.5% per month, with a minimum, accruing from the first day of the following month.

On the tax side, employers under the Auto-Inclusion Scheme submit employee income information to IRAS by 1 March each year for the preceding calendar year, so it flows directly into employees’ tax assessments. Payslips must be itemised and issued together with payment, as required under the Employment Act 1968.

Step-by-step: the monthly cycle

1. Confirm each employee’s CPF status, citizenship or PR, and age band.
2. Compute gross pay, including allowances and any additional wages.
3. Apply the correct CPF rates and Ordinary Wage ceiling for the month.
4. Pay net salary and issue itemised payslips on time.
5. Remit CPF to the CPF Board by the 14th of the following month.
6. At year-end, prepare and submit employee income information to IRAS under the Auto-Inclusion Scheme by 1 March.

Common mistakes and gotchas

Missing the 14th-of-the-month CPF deadline and incurring interest. Applying an outdated Ordinary Wage ceiling after a statutory increase. Treating directors’ fees and bonuses incorrectly for additional-wage CPF. Forgetting CPF is not due for foreign staff. And failing to issue itemised payslips, which is itself a breach of the Employment Act 1968.

Additional Wage ceiling and bonuses

CPF is charged on Ordinary Wages up to the monthly ceiling and on Additional Wages, such as bonuses, up to an annual cap. The Additional Wage ceiling is computed as S$102,000 less the Ordinary Wages that already attracted CPF for the year. Employers who pay large year-end bonuses should compute this carefully, because over-contributing is as much an error as under-contributing.

Directors’ fees, by contrast, are generally not subject to CPF, as they are not wages from employment, though they remain taxable income reported to IRAS. Distinguishing salary from directors’ fees correctly avoids both CPF errors and tax misreporting.

Leave, payslips and other statutory duties

Beyond CPF, the Employment Act 1968 sets baseline entitlements for covered employees, including paid annual leave, paid sick leave once qualifying conditions are met, and public holidays. Itemised payslips must be issued with salary, showing basic pay, allowances, deductions and CPF, and key employment terms must be given in writing for employees engaged for at least 14 days.

Employers also handle the Skills Development Levy, a small levy on all employees that funds national training, and must maintain employment records. For foreign employees, the relevant work-pass conditions and, where applicable, the foreign worker levy replace CPF.

Getting the monthly rhythm right, accurate computation, on-time CPF by the 14th, correct payslips, and a clean year-end Auto-Inclusion Scheme submission by 1 March, keeps an employer compliant and avoids the interest, penalties and disputes that follow from slips. Many SMEs outsource payroll precisely to make that rhythm reliable.

Related guides and where to get help

For the wider context, see our related guide on iras voluntary disclosure programme vdp singapore. It also helps to read ep s pass entrepass singapore 2026 comparison across the Raffles group of sites. On this site, our companion guide singapore payroll and cpf for employers complete 2026 guide goes deeper on the practical steps.

Official references

Always confirm the latest rules with the source authorities: IRAS, Singapore Statutes Online, ACRA.

FAQs

When is CPF due each month?
CPF contributions for a calendar month are due by the 14th of the following month. If the 14th is a weekend or public holiday, payment is due by the next working day. Late payment attracts interest at 1.5% per month.

What is the CPF contribution rate?
For employees aged 55 and below, the total rate is 37% of wages, 17% employer and 20% employee. The rates step down for older age bands. The Ordinary Wage ceiling rises to S$8,000 from 1 January 2026.

Is CPF payable for foreign employees?
No. CPF is payable only for Singapore Citizens and Permanent Residents. Foreign employees on work passes are not covered by CPF; their work-pass conditions apply instead.

What is the Auto-Inclusion Scheme?
It is the IRAS scheme under which employers submit employees’ income information directly to IRAS, by 1 March each year, so it is automatically included in employees’ tax assessments. It is mandatory for many employers.

Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Raffles Corporate Services works with a panel of corporate and employment law firms; this article is general information, not legal advice.