Do note that the information in this article is accurate as of the date of publishing.
As a general guide, CPF contributions are required for full-time, part-time, casual and temporary employees who are:
- Singapore citizens or permanent residents
- Engaged under a contract of service (i.e. an employment contract as opposed to a contract for service)
- Earning more than $50 a month
For Singapore Citizens
These employees contribute up to 20% of their salary to their CPF accounts and they receive up to 17% of their salaries as contributions from their employers. The amounts vary depending on an employee’s age. The amount of salary that attracts CPF contribution is capped at the first $6,000 of the employee’s monthly salary.
The employers are responsible for paying both the employee’s and employer’s CPF contributions. The deadline for the employer to contribute CPF is on the 14th of the following month. If the employer is late in paying the employee’s CPF, late payment interest is charged at 18% per annum (i.e. 1.5% per month).
From the 1st of January 2022, employers will have to make higher CPF contribution rates for older employees. Older employees will also have to make more employee CPF contributions. The CPF Offset Transition Package will help employers offset half of their additional costs.
The variable factors that determine the contribution rates are:
- Whether the employee is above the age of 55
- Whether the employee is earning $750 and above per month.
This table is for employees earning $750 and above per month
| Age of employee | Employee's CPF contribution (%) | Employer's CPF contribution (%) | Total CPF contribution |
|---|---|---|---|
| 55 and below | 17 | 20 | 37 |
| Above 55 to 60 | 14 | 14 | 28 |
| Above 60 to 65 | 10 | 8.5 | 18.5 |
| Above 65 to 70 | 8 | 6 | 14 |
| Above 70 | 7.5 | 5 | 12.5 |
This table is for employees earning less than $750 per month
| Age of employee | Monthly salary | Employee's CPF contribution | Employers's CPF contribution (%) |
|---|---|---|---|
| 55 and below | more then $50 up to $500 | Nil | 17 |
| 55 and below | more than $500 up to $750 | 0.6 x (Monthly salary - $500) | 17 |
| Above 55 to 60 | more then $50 up to $500 | Nil | 14 |
| Above 55 to 60 | more than $500 up to $750 | 0.42 x (Monthly salary - $500) | 14 |
| Above 60 to 65 | more then $50 up to $500 | Nil | 10 |
| Above 60 to 65 | more than $500 up to $750 | 0.255 x (Monthly salary - $500) | 10 |
| Above 65 to 70 | more then $50 up to $500 | Nil | 8 |
| Above 65 to 70 | more than $500 up to $750 | 0.18 x (Monthly salary - $500) | 8 |
| Above 70 | more then $50 up to $500 | Nil | 7.5 |
| Above 70 | more than $500 up to $750 | 0.15 x (Monthly salary - $500) | 7.5 |
The employer’s CPF contribution remains the same throughout. It is the employee’s CPF contribution that differs. Those who earn less than $500 will not need to make employee contributions.
Additional Wages
Additional Wages are payments on top of the employee’s monthly salary like bonuses or leave pay. Employees and employers are subject to CPF contributions subject to the cap on Additional Wages.
Cap on Additional Wages = $102,000 – Ordinary Wages subject to CPF contributions for the year.
For Permanent Residents
CPF contributions for employees who are PRs differ from that of Singaporeans for the first two years when the employee obtains his or her PR status. After which the contribution rates are the same as that of Singaporeans. There are no higher contribution rates for PR employees who are aged 65 and above.
This table is for employees who are 1st and 2nd year PRs earning $750 and above per month
| Age of PR Employee | PR Status | Employee's contribution (%) | Employer's contribution (%) |
|---|---|---|---|
| 55 and below | 1st-year PR | 5 | 4 |
| 55 and below | 2nd-year PR | 15 | 9 |
| Above 55 to 60 | 1st-year PR | 5 | 4 |
| Above 55 to 60 | 2nd-year PR | 12.5 | 6 |
| Above 60 to 65 | 1st-year PR | 5 | 3.5 |
| Above 60 to 65 | 2nd-year PR | 7.5 | 3.5 |
| Above 65 to 70 | 1st-year PR | 5 | 3.5 |
| Above 65 to 70 | 2nd-year PR | 5 | 3.5 |
| Above 70 | 1st-year PR | 5 | 3.5 |
| Above 70 | 2nd-year PR | 5 | 3.5 |
If you have more questions pertaining to CPF contribution matters, you may email us at [email protected].
Yours Sincerely,
The editorial team at Singapore Secretary Services
For more useful articles and videos, visit the Singapore Secretary Services resource page.
Join our Telegram Channel to get updates to all our latest articles: https://t.me/SGSecretaryServices
Do visit the Company Essentials Workshop YouTube Channel to view useful videos: https://www.youtube.com/c/CompanyEssentialsWorkshop
Related articles:
Are CPF contributions by Employers taxable?
Are directors’ fees subject to CPF contributions?
[…] forms part of the monthly basic salary and it shall be included in computing overtime payment and CPF contribution. It is recommended that MVC should form 10% of the monthly basic salary and should be […]
[…] CPF contributions […]