Running payroll correctly in Singapore involves more than calculating salaries. Employers must make timely CPF contributions, manage statutory deductions and leave entitlements, and submit the correct returns to government agencies. This guide covers everything Singapore employers need to know for 2026.

CPF Contribution Rates 2026

The Central Provident Fund (CPF) is mandatory for Singapore citizens and Permanent Residents. Both employer and employee contribute — CPF is not required for foreign employees on work passes.

For employees aged 55 and below, the total CPF contribution rate is:

  • Employer contribution: 17% of ordinary wages
  • Employee contribution: 20% of ordinary wages
  • Total: 37% of ordinary wages

Reduced rates apply for older workers: 26.5% total for ages 55–60; 16.5% for ages 60–65; 12.5% for ages 65–70; and lower still above 70. The CPF Ordinary Wage (OW) ceiling is S$7,400 per month from 1 January 2026 (increased from S$6,800 as part of the phased increase announced in Budget 2023). The Annual Additional Wage (AW) ceiling is S$102,000 minus total ordinary wages subject to CPF for the year.

CPF Payment Deadline

CPF contributions must be paid to the CPF Board by the 14th of the following month (or the next business day if the 14th falls on a weekend or public holiday). Late payment attracts interest at 18% per annum and potential prosecution. Payment is made via CPF e-Submit@web or internet banking. Employers with 10 or more employees must submit data electronically.

Retirement and Re-employment Age from 1 July 2026

From 1 July 2026, the retirement age rose to 64 (from 63) and the re-employment age to 69 (from 68). Employers must not dismiss an employee solely on the ground of age before they reach 64, and must offer re-employment to eligible employees who turn 64 — those who are Singapore citizens or PRs, have worked for the employer for at least two years, and are assessed as satisfactory. If re-employment cannot be offered, an Employment Assistance Payment (EAP) must be paid.

Statutory Leave Entitlements

Under the Employment Act, employees are entitled to:

  • Annual leave: Minimum 7 days in the first year, increasing by one day per year to a maximum of 14 days
  • Sick leave: Up to 14 days paid outpatient sick leave and 60 days paid hospitalisation leave per year (for employees with at least 6 months’ service)
  • Maternity leave: 16 weeks (Singapore citizens), 12 weeks (non-citizens)
  • Paternity leave: 4 weeks for qualifying births from 1 January 2024
  • Childcare leave: 6 days per year for parents of Singapore citizen children under 7

IR8A and IR21: Annual Tax Reporting

Form IR8A

Employers must prepare Form IR8A (Employee’s Remuneration) for every employee who received employment income during the calendar year. For YA 2026 (income earned in 2025), the IR8A filing deadline is 1 March 2026. Employers with 6 or more employees must submit electronically via the Auto-Inclusion Scheme (AIS), which automatically feeds the data into employees’ personal income tax returns.

Form IR21 (Tax Clearance for Foreign Employees)

When a foreign employee ceases employment or leaves Singapore, the employer must notify IRAS via Form IR21 at least one month before the last day of employment. The employer must also withhold all salary and other payments pending IRAS issuing a clearance directive.

Skills Development Levy (SDL)

Employers must pay SDL for all employees, including part-time and casual staff. The SDL rate is 0.25% of gross wages (minimum S$2 per employee per month) for wages up to S$4,500. SDL is paid together with CPF contributions via CPF e-Submit.

Payroll Best Practices

  • Use CPF-Board-approved payroll software to automate contribution calculations and e-submissions
  • Issue itemised pay slips for every salary payment — mandatory under the Employment Act
  • Set a payroll calendar to ensure CPF is never paid late
  • Keep records of all salary payments, leave balances, and CPF submissions for at least five years
  • Review the CPF OW ceiling annually — the phased increases through 2026 change monthly calculation caps

For obligations arising from director duties alongside payroll compliance, see our article on director duties and personal liability in Singapore. For statutory annual filing requirements including payroll-related returns, see our guide on ACRA annual return filing deadlines 2026.

How Raffles Corporate Services Can Help

Our team provides monthly payroll processing for Singapore companies — handling CPF submissions, IR8A preparation, SDL payment, leave tracking, and tax clearance for departing foreign employees. Contact Raffles Corporate Services at [email protected] or call, SMS, or WhatsApp +65 8501 7133.

— The Editorial Team, Raffles Corporate Services