Payroll and CPF compliance is one of the most time-sensitive areas of running a Singapore company. Employers who miss CPF contribution deadlines face compulsory late payment interest of 1.5 per cent per month, and in serious or persistent cases, prosecution under the Central Provident Fund Act 1953. Beyond CPF, there are Skills Development Levy obligations, IR8A annual filing requirements, MOM employment record-keeping duties, and the Auto-Inclusion Scheme for electronic salary data submission.
This guide consolidates all key employer obligations for 2026 — covering CPF contribution rates by age group, the revised Ordinary Wage ceiling, critical deadlines, and what a compliant monthly payroll process should look like for Singapore SMEs.
CPF Contribution Rates in 2026
CPF contributions are payable on the Ordinary Wages (OW) and Additional Wages (AW) of Singapore Citizens and Permanent Residents (PRs) who are employees. Foreign work pass holders (Employment Pass, S Pass, Work Permit) do not attract CPF contributions.
Rates for Employees Aged 55 and Below
| Age Group | Employee Contribution | Employer Contribution | Total |
|---|---|---|---|
| 55 years and below | 20% | 17% | 37% |
| Above 55 to 60 | 15% | 15% | 30% |
| Above 60 to 65 | 9.5% | 11.5% | 21% |
| Above 65 to 70 | 7% | 9% | 16% |
| Above 70 | 5% | 7.5% | 12.5% |
Note: Rates for PRs in their first and second years of PR status differ — graduated rates apply. Check the CPF Board website (cpf.gov.sg) for the most current PR contribution rate schedules.
The Ordinary Wage Ceiling and Annual Limit
Ordinary Wage (OW) Ceiling
CPF contributions on Ordinary Wages are capped at a monthly ceiling. The OW ceiling has been progressively raised:
- From 1 January 2026: S$7,400 per month (raised from S$6,800 in 2025)
- From 1 January 2027: S$8,000 per month (announced)
This means that for an employee earning S$10,000 per month, CPF contributions are calculated only on S$7,400 — not the full S$10,000. Wages above the OW ceiling do not attract CPF contributions (subject to the Additional Wages rules below).
Additional Wages (AW) and Annual Limit
Additional Wages (e.g., annual bonuses, performance awards, leave encashment) attract CPF contributions subject to the AW ceiling, which is calculated as:
AW Ceiling = S$102,000 − Total OW on which CPF contributions were made during the year
The overall CPF Annual Limit (the maximum total CPF contributions an employee can receive from all sources in a year) is S$37,740.
Payroll Deadlines
CPF Contribution Deadline
CPF contributions for a given month must be paid to the CPF Board by the 14th of the following month. If the 14th falls on a weekend or public holiday, the deadline is the next working day. Electronic payment via PayNow, GIRO, or the CPF e-Submit portal is strongly recommended to ensure timely processing.
Late payment interest is charged at 1.5 per cent per month (18 per cent per annum, pro-rated daily) on the outstanding CPF amount, accruing from the day after the due date.
Skills Development Levy (SDL) Deadline
The SDL is payable on the first S$4,500 of each employee’s monthly wages at a rate of 0.25 per cent (minimum S$2 per employee per month). SDL is due by the 14th of the following month — the same deadline as CPF contributions. SDL is collected by the CPF Board on behalf of SkillsFuture Singapore. All employers — regardless of the nationality of their employees — must pay SDL for all employees (including foreign work pass holders).
IR8A Annual Filing — Salary Information for IRAS
By 1 March each year, employers must report the remuneration paid to all employees in the preceding calendar year to IRAS. This is done through Form IR8A (employment income), with supplementary forms where applicable:
- Appendix 8A: For benefits-in-kind (company car, housing, club memberships, etc.)
- Appendix 8B: For stock option and share award gains
- Form IR21: For employees who are leaving Singapore permanently or for extended overseas postings — this must be filed at least one month before the employee’s last day of service
Auto-Inclusion Scheme (AIS)
Employers with 5 or more employees are required to participate in the Auto-Inclusion Scheme (AIS), through which salary information is submitted directly to IRAS electronically. Under AIS, employees do not need to manually enter their employment income in their personal income tax returns — IRAS pre-fills this information automatically. Employers participating in AIS must submit salary information by 1 March each year. Failure to submit on time attracts a penalty of up to S$1,000 per return.
MOM Employment Records and Leave Entitlements
Under the Employment Act 1968, employers must maintain accurate employment records for all employees (including salary records, CPF contribution records, and leave records) and provide itemised payslips — either in hard copy or electronic format — to all employees within three working days of paying salary.
Key statutory leave entitlements in Singapore include:
- Annual Leave: Minimum 7 days per year for the first year of service, increasing by one day per year up to a maximum of 14 days (under the Employment Act; contractual entitlements may be higher).
- Sick Leave: 14 days paid outpatient sick leave per year (and 60 days hospitalisation leave).
- Childcare Leave: 6 days per year for parents of Singapore Citizens under 7 years old; 2 days per year for parents of non-citizen children.
- Maternity Leave: 16 weeks for Singapore Citizen children; 8 weeks for non-citizen children.
- Paternity Leave: 4 weeks for Singapore Citizen children born from 1 January 2025 onwards (increased from 2 weeks).
Employment Act requirements, including leave obligations, are administered by the Ministry of Manpower (MOM). Full details are at mom.gov.sg.
Your Monthly Payroll Compliance Checklist
A compliant monthly payroll process for a Singapore Pte Ltd should include:
- Calculate gross salary for each employee (including overtime, commissions, and any variable components).
- Deduct employee CPF contribution (based on applicable age rate) from gross salary.
- Calculate employer CPF contribution (based on applicable age rate).
- Calculate SDL (0.25% of first S$4,500 wages per employee).
- Issue itemised payslips within 3 working days of salary payment.
- Submit CPF contributions and SDL to CPF Board by the 14th of the following month.
- Update payroll records and keep for at least 2 years (5 years recommended for audit purposes).
Annual Compliance Calendar Integration
Payroll deadlines sit within a broader framework of employer and company compliance obligations. For all ACRA, IRAS, CPF, and MOM deadlines in one place, see our Singapore Company Compliance Calendar 2026.
Getting Payroll Support
For many Singapore SMEs, outsourcing payroll to a professional corporate services provider is more cost-effective than managing it in-house — particularly when factoring in the cost of errors, late payment penalties, and management time. A competent payroll service will handle monthly CPF and SDL submissions, IR8A preparation, AIS filing, and integration with your bookkeeping system.
For payroll processing, CPF compliance, and accounting services in Singapore, contact Raffles Corporate Services.
— The Editorial Team, Raffles Corporate Services
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