CPF Contribution Guide for Singapore Employers
Master CPF contribution rates, wage ceilings, PR graduated rates, account allocation rules, and employer obligations under the Central Provident Fund Act.
The Central Provident Fund (CPF) is Singapore's comprehensive social security savings plan. Under the CPF Act, both employers and employees must make mandatory monthly contributions to the employee's CPF accounts. These contributions fund retirement, healthcare, homeownership, and insurance needs.
For employers, CPF compliance is a fundamental payroll obligation. Getting contribution rates, wage ceiling calculations, or payment deadlines wrong can result in penalties, surcharges, and legal action by the CPF Board. The system has multiple variables — age bands, wage ceilings, PR graduated rates, and allocation rules — that make accurate calculation essential.
This guide covers the CPF contribution framework that every Singapore employer needs to understand: current rates, the Ordinary Wage (OW) and Additional Wage (AW) ceilings, allocation across CPF accounts, and payment procedures.
CPF Contribution Rates by Age
CPF contribution rates vary based on the employee's age group. For Singapore Citizens and 3rd-year-and-above Permanent Residents (full rates), the current rates are:
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 | 16% | 15% | 31% |
| Above 60 to 65 | 10.5% | 11.5% | 22% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
Wages below $50/month: No CPF contributions required.
Wages $50-$500/month: Only employer contributions are required (no employee share).
Wages above $500/month: Both employer and employee contributions are required at the full rates above.
Wage Ceilings — OW and AW
CPF contributions are subject to two wage ceilings:
Ordinary Wage (OW) Ceiling
The OW ceiling is $6,800 per month (as of January 2024, increased from $6,300). Ordinary Wages are wages due for the month — basic salary and allowances payable monthly.
CPF contributions on OW are computed only on wages up to the OW ceiling. If an employee earns $8,000/month in basic salary, CPF is computed on $6,800 only.
Additional Wage (AW) Ceiling
Additional Wages include bonuses, annual wage supplements (AWS/13th month), and other non-monthly payments. The AW ceiling per year is:
$102,000 minus total OW subject to CPF for the year
Example: If an employee earns $6,800/month OW (× 12 = $81,600 total OW subject to CPF), their AW ceiling for the year is $102,000 − $81,600 = $20,400.
If an employee earns $4,000/month OW (× 12 = $48,000 total OW), their AW ceiling is $102,000 − $48,000 = $54,000.
Important: The OW ceiling is applied per month, and the AW ceiling is applied per year. Employers must track cumulative OW subject to CPF to correctly determine the AW ceiling for each employee.
Permanent Resident Graduated Rates
Singapore Permanent Residents (PRs) do not start at full CPF contribution rates. They follow graduated contribution rates during their first 2 years of PR status:
1st Year PR (Graduated rates — GG)
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 5% | 4% | 9% |
| Above 55 to 60 | 5% | 4% | 9% |
| Above 60 to 65 | 5% | 3.5% | 8.5% |
| Above 65 | 5% | 3.5% | 8.5% |
2nd Year PR (Graduated rates — FG)
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 15% | 9% | 24% |
| Above 55 to 60 | 12.5% | 6% | 18.5% |
| Above 60 to 65 | 7.5% | 3.5% | 11% |
| Above 65 | 5% | 3.5% | 8.5% |
Joint application for full rates: Both employer and employee can jointly apply to CPF Board to contribute at full rates from the 1st year of PR status.
CPF Account Allocation (OA/SA/MA)
CPF contributions are allocated across three accounts, each serving a specific purpose:
- Ordinary Account (OA): Housing, education, insurance, CPF investment
- Special Account (SA): Retirement and retirement-related investments
- MediSave Account (MA): Hospitalization and approved medical expenses/insurance
Allocation rates for employees aged 55 and below (total 37%):
| Account | Allocation Rate | Purpose |
|---|---|---|
| OA | 23% | Housing, education, investments |
| SA | 6% | Retirement savings |
| MA | 8% | Healthcare |
As employees age, a larger share is allocated to SA and MA (for retirement and healthcare), and less to OA. At age 55, the SA and OA merge into a Retirement Account (RA) under the CPF LIFE scheme.
MediSave ceiling: There is a Basic Healthcare Sum (BHS) that caps the MediSave balance — currently $71,500 (2024). Contributions exceeding this are redirected to SA (if under 55) or RA (if over 55).
Employer Obligations and Payment
Employers bear the following CPF obligations:
- Payment deadline: CPF contributions must be paid by the 14th of the following month (e.g., January wages by February 14). If the 14th falls on a Saturday, Sunday, or public holiday, the deadline is the next business day
- Payment method: Employers must pay via CPF EZPay (the Board's electronic submission system). Cash and cheque payments are no longer accepted for most employers
- Recovery of employee's share: The employer pays the full contribution (employer + employee shares) to CPF Board, and recovers the employee's share from their salary. Recovery must be from wages for that month — employers cannot recover from previous months' wages
- Cannot reduce salary to offset CPF: Employers cannot reduce an employee's salary to offset the employer's CPF contribution
- Payslip requirements: Employers must issue itemized payslips showing CPF deductions
New employees: CPF contributions start from the first month of employment, pro-rated for the number of days worked if the employee joins mid-month.
Resigned/terminated employees: CPF contributions are required for the last month of employment, pro-rated if the employee leaves mid-month.
How SnapHRM Helps
SnapHRM automates the HR processes that keep your business compliant with CPF Guide.
Automated CPF Calculation
Calculate CPF contributions automatically based on employee age, residency status, and wages — with OW and AW ceilings applied correctly.
PR Rate Management
Track PR graduated rates by employee and automatically transition from graduated to full rates based on PR anniversary dates.
CPF Submission Files
Generate CPF EZPay submission files directly from payroll, reducing manual data entry and errors in monthly submissions.
Payment Deadline Alerts
Automated reminders before the 14th of each month to ensure CPF contributions are submitted on time, every time.
Pro-Rated Calculations
Automatically pro-rate CPF for employees joining or leaving mid-month, with correct wage ceiling adjustments.
Year-End Reconciliation
Track cumulative OW subject to CPF throughout the year for accurate AW ceiling computation during bonus months.
Penalties for Non-Compliance
The CPF Act imposes strict penalties for non-compliance:
- Late payment surcharge: 18% per annum (1.5% per month) on unpaid contributions, with a minimum charge of $5 per month. This accrues automatically from the 15th of the month
- Non-payment prosecution: Employers who fail to pay CPF can be prosecuted. Penalties include a fine of up to $10,000 and/or imprisonment of up to 7 years per charge
- False declarations: Providing false information to CPF Board carries a fine of up to $5,000 and/or imprisonment of up to 6 months
- Unauthorized deductions: Deducting more than the employee's required share of CPF is an offense
The CPF Board actively prosecutes non-compliant employers. In recent years, dozens of employers have been fined and imprisoned for CPF offenses. The Board also publishes the names of convicted employers. Beyond legal penalties, CPF non-compliance affects work pass applications and renewals — MOM considers CPF compliance when processing Employment Pass, S Pass, and Work Permit applications.
Frequently Asked Questions
Common questions about CPF Guide
Have more questions? Check our knowledge base or contact us.
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