CPF covers citizens and permanent residents only. EP, S Pass and Work Permit holders are outside it, and overpayments must be reclaimed separately.
Singapore GuidesTax & compliance
CPF & HIRING
CPF is a mandatory fund for Singapore citizens and permanent residents only, payable once monthly wages exceed S$50. Foreign employees on an EP, S Pass or Work Permit are outside the CPF system — for S Pass and Work Permit holders the employer pays a foreign worker levy instead. From January 2026 the rate for employees aged 55 and below is 17% employer and 20% employee, 37% in total, tapering with age. The Ordinary Wage ceiling is S$8,000 a month from January 2026. Contributions are due by the 14th of the following month, with interest of 1.5% per month on late payment, subject to a S$5 minimum.
| Item | Rule |
|---|---|
| Who it covers | Singapore citizens and permanent residents earning more than S$50 a month |
| Foreign pass holders | Outside CPF (S Pass / Work Permit carry a foreign worker levy instead) |
| Ordinary Wage ceiling | S$8,000 per month from January 2026 |
| Additional Wage ceiling | S$102,000 less total Ordinary Wage subject to CPF for the year, per employee per employer per calendar year |
| Payment deadline | By the 14th of the following month (next working day if it falls on a weekend or public holiday) |
| Late payment interest | 1.5% per month from the day after the due date, minimum S$5 |
Rates applying from January 2026:
| Age band | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
The employee share is withheld from wages by the employer, but the duty to declare and pay sits with the employer — an employee not paying is not a defence. Two further points: rates for senior employees rise again in January 2027, and permanent residents are on lower graduated rates during their first and second years of PR status.
This is the cost line foreign companies most often get wrong. CPF covers citizens and permanent residents; employees on an EP, S Pass or Work Permit do not attract CPF.
That does not make them free. For S Pass and Work Permit holders the employer pays a foreign worker levy — S$650 per worker per month for the S Pass since September 2025. An EP carries neither CPF nor levy.
So a role paying S$6,000 a month costs the employer materially more with a local hire than with an EP holder: the local attracts an additional 17% employer CPF within the OW ceiling, the EP holder none. Budget the two separately. For S Pass quota and levy detail, see the S Pass guide.
The Ordinary Wage ceiling caps the monthly wage on which CPF is computed. After a four-step increase it stands at S$8,000 from January 2026 — S$6,300 from September 2023, S$6,800 in 2024, S$7,400 in 2025, then S$8,000. Monthly wages above S$8,000 attract no further CPF.
The Additional Wage ceiling governs bonuses and commissions. The formula is S$102,000 less the total Ordinary Wage subject to CPF for that year, applied per employee, per employer, per calendar year. The higher the monthly salary, the less bonus headroom attracts CPF.
CPF is due by the 14th of the following month; where the 14th falls on a Saturday, Sunday or public holiday it moves to the next working day. Late payment triggers enforcement action and interest of 1.5% per month from the day after the due date, subject to a S$5 minimum.
1.5% a month annualises to over 19%, compounding monthly. It is where cash-strapped small companies most often slip, and it costs more than people expect.
CPF covers citizens and permanent residents only. EP, S Pass and Work Permit holders are outside it, and overpayments must be reclaimed separately.
S Pass and Work Permit holders carry a foreign worker levy — S$650 per worker per month for the S Pass since September 2025.
There is a ceiling. Ordinary Wages are capped at S$8,000 a month from January 2026; anything above attracts none.
Declaring and paying is the employer's duty. The employer withholds the employee share and bears the late-payment interest.
We run CPF inside the payroll cycle: split employees by status (citizen, PR, pass holder), apply the right age-band rate, strip out wages above the OW and AW ceilings, and file and pay before the 14th. The graduated rates in a PR's first two years, and the months in which an employee crosses 55, 60 or 65, are where errors cluster — we check those monthly. See pricing.
No. CPF applies only to Singapore citizens and permanent residents earning more than S$50 a month. Employees on an EP, S Pass or Work Permit are outside CPF, though employers pay a foreign worker levy for S Pass and Work Permit holders.
From January 2026: 17% employer and 20% employee (37% total) for those 55 and below; 16%/18% above 55 to 60; 12.5%/12.5% above 60 to 65; 9%/7.5% above 65 to 70; and 7.5%/5% above 70. Rates for senior employees rise again in January 2027.
Yes. The Ordinary Wage ceiling is S$8,000 a month from January 2026. The Additional Wage ceiling is S$102,000 less the total Ordinary Wage subject to CPF for that year, computed per employee per employer per calendar year.
By the 14th of the following month, moving to the next working day where the 14th falls on a Saturday, Sunday or public holiday.
The CPF Board takes enforcement action and charges interest at 1.5% per month from the day after the due date, subject to a minimum of S$5.
Sources: CPF Board (coverage and wage threshold, employer and employee rates by age band with 2026/2027 effective dates, graduated rates for PRs in their first two years, the Ordinary Wage ceiling and its phased increase, the Additional Wage ceiling formula, payment deadline and late payment interest); MOM (S Pass foreign worker levy). Verified August 2026; rates change, so refer to the CPF Board for the latest. This article is general information and not accounting or legal advice.
A local hire adds employer CPF, an S Pass adds a levy, an EP adds neither. Tell us the role's salary and the candidate's status and we cost all three cases.
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