Singapore Payroll & CPF Guide 2026: Rates, Deadlines & Employer Obligations

Running payroll in Singapore involves more than simply paying your staff on time. Employers must correctly calculate CPF contributions, meet strict monthly deadlines, generate compliant payslips, and file annual income tax returns for each employee. For foreign workers, the employer must also manage work pass obligations and levy payments. This guide consolidates everything Singapore employers need to know about payroll and CPF compliance in 2026, including the July 2026 updates to salary thresholds.

For a full picture of your annual corporate filing obligations alongside payroll, see our Singapore Company Compliance Calendar and our Singapore Annual Filing Calendar 2026.

CPF Contributions: Who Must Contribute and at What Rate?

Who Must Contribute CPF?

The Central Provident Fund (CPF) is Singapore’s mandatory savings scheme for retirement, healthcare, and housing. CPF contributions are required for:

• All Singapore citizens and Singapore permanent residents (PRs) employed in Singapore.
• Both the employee and the employer must contribute — it is a shared obligation.

CPF does not apply to foreign employees holding Employment Passes, S Passes, Work Permits, or other non-resident work passes. For foreign workers, employers pay a monthly foreign worker levy to the Ministry of Manpower (MOM) instead.

CPF Contribution Rates for 2026

As at 1 January 2026, CPF contribution rates for employees aged 55 and below are:

Note: Singapore Permanent Residents in their first and second year of PR status contribute at graduated rates that are lower than the above. Always refer to the CPF Board’s official website for the latest contribution rate tables.

CPF Contribution Cap: Ordinary Wage and Additional Wage Ceilings

CPF contributions are subject to wage ceilings:

• Ordinary Wage (OW) ceiling: S$6,800 per month as at 2026 (increased from S$6,300 as part of the phased increases announced at Budget 2023). This is the maximum ordinary monthly wage on which CPF contributions are computed. Note that the OW ceiling continues to increase each year — employers should check the CPF Board’s schedule for upcoming changes.
• Additional Wage (AW) ceiling: S$102,000 less the total ordinary wages for the year. This caps the amount of bonuses and variable payments on which CPF is payable.

The Local Qualifying Salary: A Critical Threshold from 1 July 2026

Effective 1 July 2026, the Local Qualifying Salary (LQS) — the minimum monthly salary that a local (Singapore citizen or PR) employee must earn to count towards the company’s Fair Consideration Framework headcount — has been increased to S$1,800 per month. This affects:

• Employers calculating their workforce composition for Employment Pass and S Pass quota purposes.
• Companies that need to demonstrate sufficient local hiring to maintain foreign worker entitlements.
• Headcount calculations under the COMPASS framework for EP applications.

Employers who employ local workers at below S$1,800 per month should review their payroll and staffing structures to ensure they are not adversely affected in their EP/S Pass quota calculations.

Payslip Obligations Under the Employment Act

Under the Employment Act (Cap. 91A), employers must issue itemised payslips to employees covered by the Act. Payslips must be issued:

• With every payment of salary (or within three working days of payment).
• In either written or electronic format.

Each payslip must include:

• Employer name and employee name.
• Payment date and the period covered.
• Gross salary, including basic pay and all allowances.
• Itemised deductions (CPF, SDL, leave deductions, etc.).
• Net pay received.
• Overtime pay (if applicable).

Failure to issue compliant payslips can result in an infringement under the Employment Act, with fines of up to S$1,000 per offence. MOM conducts routine checks and employers found in breach may also face reputational consequences.

CPF Submission Deadlines

CPF contributions must be submitted to the CPF Board by the 14th of the following month. For example, CPF contributions on salaries paid in June 2026 must be submitted and paid by 14 July 2026.

Late CPF submissions attract a penalty of 1.5% per month (or part thereof) on the outstanding contributions. Employers that habitually submit late may face prosecution under the CPF Act — fines and imprisonment apply to serious cases.

CPF submissions can be made via:

• CPF EZPay: The CPF Board’s online submission portal for employers.
• Payroll software integration: Many payroll software platforms (Talenox, Payboy, QuickHR) integrate directly with CPF EZPay and automate submission once payroll is run.
• GIRO: Employers can set up GIRO auto-payment to ensure CPF is never late.

Skills Development Levy (SDL)

In addition to CPF, employers must also pay the Skills Development Levy (SDL) for all employees, including foreign workers. SDL is assessed monthly at:

• 0.25% of monthly wages for the first S$4,500 of wages per employee.
• Minimum SDL of S$2 per employee per month (for part-time or low-paid workers).
• Maximum SDL of S$11.25 per employee per month (for wages above S$4,500).

SDL is payable alongside CPF contributions via CPF EZPay. Companies that fail to pay SDL also face penalties. SDL funds go to the SkillsFuture Enterprise Credit and training grant programmes managed by the Skills and Workforce Development Agency (SWDA), which consolidates SkillsFuture Singapore and Workforce Singapore as at mid-2026.

Annual IR8A Filing: Reporting Employee Income to IRAS

By 1 March of each year, employers must submit an IR8A form to IRAS for every employee who earned income in the preceding year. The IR8A reports the employee’s total earnings, CPF contributions, and benefits-in-kind, allowing IRAS to cross-check employee tax returns.

Employers with five or more employees must submit IR8A forms electronically via the Auto-Inclusion Scheme (AIS) on the IRAS myTax Portal. Under AIS, the income data is automatically included in the employee’s personal income tax assessment — employees do not need to manually enter their employment income.

Key IR8A data points include:

• Gross salary, bonus, and commissions.
• Benefits-in-kind (e.g., company car, housing allowance).
• Director fees (if any).
• Stock options and RSU vesting (reported separately).
• CPF contributions made by employer and employee.

IR21: Tax Clearance for Departing Foreign Employees

When a foreign employee (EP, S Pass, or Work Permit holder) ceases employment in Singapore and intends to leave the country permanently (or for more than three months), the employer must file an IR21 tax clearance form with IRAS at least one month before the employee’s last day or departure, whichever is earlier.

Until IRAS clears the employee’s tax, the employer must withhold the employee’s final salary. This is a mandatory obligation — employers who pay out final salaries without obtaining tax clearance may be held personally liable for the employee’s outstanding Singapore tax.

Payroll for Foreign Workers: Levy and Pass Compliance

For S Pass and Work Permit holders, employers must pay a monthly foreign worker levy to MOM. Levy rates depend on the worker’s pass type, the employer’s industry, and the proportion of foreign workers relative to the local workforce (the dependency ratio). Levy rates change periodically and are available on the MOM website.

Levy is deducted via GIRO on the 17th of each month. Employers with insufficient GIRO funds face a levy default penalty and may have their pass entitlements revoked. For assistance with work pass applications for your foreign workforce, our associated licensed employment agency handles the full submission process with MOM.

Should You Run Payroll In-House or Outsource It?

For companies with fewer than five employees and a straightforward payroll structure, running payroll in-house using a CPF-integrated software platform is manageable. For companies with more complex structures — multiple employment types, variable commissions, shift work, or a mix of local and foreign staff — outsourcing payroll to a professional firm eliminates the risk of compliance errors and frees up management time.

Payroll outsourcing also ensures that payslip format, CPF filing, SDL, and IR8A obligations are all handled correctly, with accountability for errors resting with the service provider. Raffles Corporate Services provides payroll outsourcing services for Singapore SMEs, handling the full monthly cycle from payslip generation to CPF EZPay submission.

For the latest Singapore employment and business news, including MOM announcements on CPF rates and levy changes, there are regularly updated resources available.

Beyond payroll compliance, sound financial planning and investment decisions help business owners maximise value from their enterprise.

If you need legal advice on employment disputes or wrongful termination matters arising from payroll practices, professional legal guidance is advisable before making any payroll-related employment decisions.

To speak with the team at Raffles Corporate Services, you can email [email protected] or call, SMS, or WhatsApp +65 8501 7133. We are happy to assist with any queries.

— The Editorial Team, Raffles Corporate Services