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Contribution of Central Provident Fund (CPF) in Singapore
The CPF is a mandatory social security savings scheme funded by contributions from employers and employees in Singapore.
The CPF is a key pillar of Singapore’s social security system, and serves to meet our retirement, housing and healthcare needs.
The scheme makes it mandatory for the employer to contribute to the CPF for all the local employees such as Singapore Citizens and Singapore Permanent Residents who earn over SGD50 per month. The highest contribution rate for the employer is 17% and for the employee is 20%, and it could be lower based on factors like the age and permanent resident status of the employee.
All Work Pass holders are exempted from this scheme.
You may wish to visit Central Provident Fund (CPF) or to use Employer related various Calculators online for detailed information and current updates.
How do I start contributing CPF as a new Employer?
You should apply to e-submit your CPF contribution details using CPF e-Submit@web as soon as you intend to hire your first employee. To apply, you will need your SingPass/CorpPass and entity’s Unique Entity Number (UEN).
Once your application is approved, you will be notified via email. You will also receive a hardcopy welcome letter which contains your CPF Submission Number (CSN) and a Direct Debit Authorisation form.
Please quote your CSN when transacting with the Board e.g. paying CPF contributions or corresponding with CPF Board.
You have a grace period of 14 days to pay the CPF contributions after the end of the month for which CPF contributions are due. If the last day of the grace period falls on a Saturday, Sunday or Public Holiday, CPF must be paid by the next working day.
After your payment has been processed, you will receive an email notification to view the electronic Record of Payment (eROP) from our website. Please note that a hard copy ROP will not be sent.
Please check your eROP and inform the Board immediately of any discrepancy. The eROP should be kept for future reference. If you have misplaced the ROP and need a re-print, a service charge is payable.
What is the CPF Submission Number (CSN)?
You have to use the CPF Submission Number (CSN) to transact with us. The CSN comprises your UEN and CPF Payment Code, except in these cases:
For employers who are individuals hiring local employees such as a personal driver, gardener and local domestic worker, the CSN is the ‘NRIC/Foreign Identification Number (FIN) + CPF Payment Code’; and
For individuals hiring foreign domestic workers or individuals who are self-employed, the CSN is the individual’s NRIC/FIN.
Click here to learn about how to apply CPF CSN
CPF Contributions for your Employees
If you hire employees, you will need to make CPF contributions for them. This will help your employees meet their retirement, housing and healthcare needs.
How do I determine CPF contributions?
The steps to determine CPF contributions are:
- Identify your employees.
- Find out which wage payments attract CPF contributions.
- Classify wages as ordinary wages and additional wages.
- Apply the CPF contribution rates.
What is the definition of an Employer?
An employer can be:
any person, company, association or body of persons, whether or not incorporated, by whom an employee is employed;
the owners of any vessel on which an employee is employed; or
any manager, agent or person responsible for the payment of wages to an employee, on behalf of an employer.
Who are my employees?
An employee is
- any Singapore Citizen or Singapore Permanent Resident who is employed in Singapore under a contract of service by an employer otherwise than as a master, a seaman or an apprentice in any vessel; or
- any Singapore Citizen who is employed under a contract of service or other agreement entered into in Singapore as a master, a seaman or an apprentice in any vessel where the owners have not been exempted from the provisions of the CPF Act.
Your employees can include:
- Company directors
- Employees on concurrent employment
- Family workers
- NSmen on in-camp training
- Part-time employees
- Temporary/ casual employees
Find out more about who you need to pay CPF contributions for (PDF with links).
What are the CPF changes announced in Budget 2023?
Singapore Deputy Prime Minister and Minister for Finance Lawrence Wong announced three changes related to CPF during the FY2023 Budget Statement in Parliament on 14 February 2023, as stated below.
CPF Board had also announced two additional changes on 15 February 2023. These changes enable more members to benefit from CPF.
-
Increase in the CPF monthly salary ceiling
The CPF monthly salary ceiling sets the maximum amount of CPF contributions payable for Ordinary Wages and is currently set at $6,000. To keep pace with rising salaries, the monthly salary ceiling will be raised from $6,000 to $8,000 by 2026. The increase will take place in four steps to allow employers and employees to adjust to the changes.
The CPF annual salary ceiling sets the maximum amount of CPF contributions payable for all salaries received in the year, inclusive of both Ordinary Wages and Additional Wages. There will be no change to the current CPF annual salary ceiling of $102,000. This will be reviewed periodically to ensure that it continues to cover about 80% of employees.
Please refer to the table below for the CPF monthly and annual salary ceilings from 2023 to 2026.
| Effective period | CPF monthly salary ceiling | CPF annual salary ceiling |
| Current | $6,000 | $102,000
(Subject to review periodically) |
| From 1 September 2023 | $6,300 (+$300) | |
| From 1 January 2024 | $6,800 (+$500) | |
| From 1 January 2025 | $7,400 (+$600) | |
| From 1 January 2026 | $8,000 (+$600) |
-
Increase in CPF contribution rates for senior workers and CPF Transition Offset
To continue strengthening the retirement adequacy of our senior workers, the employer and employee CPF contribution rates for employees aged above 55 to 70 will be raised by up to 1 percentage point each from 1 January 2024. As with previous increases, this increase will be fully allocated to the Special Account to help senior workers save more for retirement.
A one-year CPF Transition Offset equivalent to half of the 2024 increase in employer CPF contribution rates will be provided to employers to mitigate the rise in business costs due to this increase. This will be provided automatically and employers need not apply for the offset.
What are the changes to the CPF contribution rates for senior workers that will take effect from 1 January 2024?
To strengthen senior workers’ retirement adequacy, the Tripartite Workgroup on Older Workers had recommended in 2019 that CPF contribution rates for senior workers aged above 55 to 70 years be raised gradually to help senior workers save more for retirement.
The first two steps of increases took effect on 1 January 2022 and 1 January 2023. The Government will continue to raise the senior worker contribution rates in 2024 with a long-term target to have the full increase rolled out by 2030.
The changes to the CPF contribution rates from 1 January 2024 are shown below:
For employees earning monthly wages > $750
| CPF Contribution Rates from 1 January 2024 | ||||
| Employee’s age (years) | Current Total
(% of wage) |
Total
(% of wage) |
By employer
(% of wage) |
By employee
(% of wage) |
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 29.5 | 31
(+1.5) |
15
(+0.5) |
16
(+1) |
| Above 60 to 65 | 20.5 | 22
(+1.5) |
11.5
(+0.5) |
10.5
(+1) |
| Above 65 to 70 | 15.5 | 16.5
(+1) |
9
(+0.5) |
7.5
(+0.5) |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
(a) The increase in the CPF contribution rates will be fully allocated to the Special Account to help senior workers save more for retirement.
(b) For those earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.
(c) There were no changes to the graduated contribution rates for first and second year Singapore Permanent Residents.
What are the current CPF contribution rates w.e.f. 01-Jan-2024?
Tables A1 and A2 show the current CPF contribution rates for private sector and public sector non-pensionable employees. Tables B1 and B2 show the contribution rates for public sector pensionable employees.
The Government has announced the increase of the CPF contribution rates in the Singapore Budget 2015. This increase will apply to the wages earned from 1 January 2016. To find out more about the changes, please refer to the Singapore Budget 2015 CPF Initiatives.
You may refer to the complete CPF contribution rate tables (Tables 1 to 5) for more details.
- Singapore Citizen
- SPR from the third year of obtaining SPR status
- SPR during the first two years of obtaining SPR status but who has jointly applied with employer to contribute at full employer-full employee rates
(For Monthly Wages >= $750):
| By employer
(% of wage) |
By employee
(% of wage) |
Total
(% of wage) |
By employer
(% of wage) |
| 55 and below | 17 | 20 | 37 |
| Above 55 to 60 | 14.5 | 15 | 29.5 |
| Above 60 to 65 | 11 | 9.5 | 20.5 |
| Above 65 to 70 | 8.5 | 7 | 15.5 |
| Above 70 | 7.5 | 5 | 12.5 |
You may refer to the complete CPF contribution rate tables (Tables 1 to 5) (PDF, 0.2MB) for more details.
CPF Contribution for First & Second Year PR with gradual basis
Please refer to below Table A2 for the CPF contribution rates from 1 January 2016 for private sector and public sector non-pensionable employees being SPR during the first two years of obtaining SPR status.
| Employee Type | Contribution Rates from 1 Jan 2016 | |
|
Graduated employer-graduated employee rates for:
|
First year of obtaining SPR status (PDF, 0.1 MB) |
Second year of obtaining SPR status (PDF, 0.1 MB) |
|
Full employer-graduated employee rates for:
|
First year of obtaining SPR status (PDF, 0.2 MB) |
Second year of obtaining SPR status (PDF, 0.2 MB) |
Table B1. Contribution rates from 1 January 2016 for public sector pensionable employees being:
- Singapore Citizen
- SPR from the third year of obtaining SPR status
- SPR during the first two years of obtaining SPR status but who has jointly applied with employer to contribute at full employer-full employee rates
Please refer to below Table B2 for the CPF contribution rates from 1 January 2016 for public sector pensionable employees being SPR during the first two years of obtaining SPR status.
|
Employee Type |
Contribution Rates from 1 Jan 2016 |
|
|
Graduated employer-graduated employee rates for:
|
First year of obtaining SPR status (PDF, 0.1 MB) |
Second year of obtaining SPR status (PDF, 0.1 MB) |
|
Full employer-graduated employee rates for:
|
First year of obtaining SPR status (PDF, 0.2 MB) |
Second year of obtaining SPR status (PDF, 0.2 MB) |
What payments attract CPF contributions?
It depends on the type of wage payments your employee receives. Besides the monthly salary and annual bonus, an employee can receive other types of payments when carrying out his work.
Find out more about the allowances and payments that attract CPF contributions (PDF, 0.3MB).
How do I classify wages as Ordinary Wages or Additional Wages?
CPF contributions are computed based on an employee’s total wages. The total wages for any calendar month is the sum of an employee’s Ordinary Wages (OW) for the month and the Additional Wages (AW) paid to him in that month.
It is important for employers to know the correct classification because there are different ceilings for OW and AW. This, in turn, will affect the amount of CPF contribution payable
What are Ordinary Wages (OW)?
Ordinary Wages (OW) are:
- wages due or granted wholly and exclusively in respect of an employee’s employment in that month; and
- wages payable before the due date for payment of CPF contributions for that month.
An example of OW is the monthly salary.
What is the Ordinary Wage ceiling?
The Ordinary Wage (OW) Ceiling limits the amount of OW that would attract CPF contributions. The OW Ceiling is capped at $6,000 currently. For example, if an employee’s OW for a calendar month is $6,500, his CPF contribution would be computed based on an OW of $6,000; CPF contribution is not required on the remaining $500.
What are Additional Wages (AW)?
Additional Wages (AW) are:
- wages which are not granted wholly and exclusively for the month; or
- wages made at intervals of more than a month.
Examples of AW are annual bonus and leave pay.
What is the Additional Wage ceiling?
The AW Ceiling is applied on a per employer per year basis. Employers are required to monitor and limit the contributions on Additional Wages of their employees. This is to prevent refund of excess payment and avoid situations where refunds cannot be made due to insufficient funds in their employees’ CPF accounts. However, employers may apply for a single AW Ceiling for transferred employees within two related companies.
You can compute the AW ceiling for your employees using the Additional Wage Ceiling Calculator. Learn more on the computation from the Examples on the Computation of AW Ceiling (PDF, 0.6MB).
Learn more about Myths and Facts on the AW Ceiling (PDF)
What are some examples of mistakes made by employers when determining CPF contributions?
Some mistakes made by employers when determining CPF contributions are:
- Wrong classification of Ordinary Wages and Additional Wages
- Non-payment of CPF contributions on allowances and NSmen make-up pay
- Underpayment of CPF contributions when wages are not paid monthly
Read more examples of mistakes by employers (PDF, 0.5MB).
Contributions to Self-Help Groups (SHGs) and SHARE Donations (Community Funds)
CPF Board is the collecting agent for contributions to self-help group (SHGs) funds and SHARE donations. These contributions and donations are deducted from your employee’s wages together with the employee’s share of CPF contribution.
