Business
Singapore — Business: Hiring Employees
Employers must pay Central Provident Fund (CPF) contributions for employees who are Singapore Citizens or Permanent Residents, not for foreign employees. For employees aged 55 and below with monthly wages above S$750, the employer rate is 17% and the employee rate 20%, a 37% total. The Ordinary Wage ceiling rose to S$8,000 a month on 1 January 2026, the last step of a four-stage increase, and the annual wage ceiling stays at S$102,000. Rates for older workers differ and some change on 1 January 2027, so check the CPF contribution table for the employee's age and status.
Key facts
- CPF contributions are payable for employees who are Singapore Citizens and Singapore Permanent Residents, not foreigners.
- Employer rate for employees aged 55 and below (monthly wages above S$750): 17%; employee rate 20%; total 37%.
- The Ordinary Wage ceiling is S$8,000 a month from 1 January 2026; the annual wage ceiling remains S$102,000.
- Rates for workers above 55 differ, and the CPF will raise some senior-worker rates on 1 January 2027.
Costs
- Employer CPF contribution (age 55 and below): 17% of wages, within the S$8,000 monthly Ordinary Wage ceiling
Common mistakes
- Applying CPF to foreign employees — it applies to Singapore Citizens and Permanent Residents.