Home/Singapore/Payroll Cpf Employer Contributions Fwl Guide

Payroll & Employment

Singapore Payroll, CPF Contributions & SDL Guide 2026

2026 Singapore payroll guide covering salary deadlines, CPF contribution rates, S$8,000 OW ceiling, SDL, foreign-worker levy and IRAS employment-income reporting.

Statutory Overview & Legal Framework

Singapore payroll compliance involves salary-payment rules under the Employment Act, CPF contributions for Singapore Citizens and applicable Permanent Residents, Skills Development Levy (SDL), Foreign Worker Levy (FWL) for eligible Work Permit and S Pass holders, itemised payslips and employment-income reporting to IRAS. From 1 January 2026, the CPF Ordinary Wage (OW) ceiling is S$8,000 per month. For Singapore Citizens and third-year-and-onward Permanent Residents aged 55 and below earning more than S$750 per month, the 2026 CPF rate is 37% in total: 17% employer and 20% employee. Other age groups and first- and second-year PRs have different rates. CPF payment is due by the last day of the month, with enforcement action if it is not paid by the 14th of the following month. Employers must also pay SDL at 0.25% of monthly total wages, subject to a S$2 minimum and S$11.25 maximum per employee. IRAS employment-income reporting is generally due by 1 March each year for employers required to submit under the Auto-Inclusion Scheme.

CPF Contribution Rates for 2026

scope: The following standard rates apply to Singapore Citizens and third-year-and-onward Singapore Permanent Residents earning monthly wages above S$750.

55 and below

17%

Above 55 to 60

16%

Above 60 to 65

12.5%

Above 65 to 70

Above 70

7.5%

Do not apply the 17% + 20% rate to every CPF-covered worker. First- and second-year PRs have graduated rates, and lower-wage contribution tables also apply.

CPF Wage Ceilings

ordinary Wage: S$8,000 per month from 1 January 2026.

annual Salary Ceiling: The CPF annual salary ceiling remains S$102,000.

additional Wages: Additional Wage contributions are subject to the annual CPF salary ceiling after accounting for Ordinary Wages already subject to CPF.

example

salary: S$10,000 monthly Ordinary Wage

cpf Basis: For 2026, monthly CPF on Ordinary Wages is calculated only up to S$8,000, subject to the employee's applicable CPF rate.

CPF, S Pass and Work Permit Employees

cpf: Foreign employees who are not Singapore Citizens or Permanent Residents generally do not receive CPF contributions.

s Pass: S Pass holders are subject to the Foreign Worker Levy and applicable foreign-worker quota rules.

work Permit: Work Permit holders are subject to the applicable Foreign Worker Levy and quota requirements.

ep: Employment Pass holders do not attract mandatory CPF contributions solely because they hold an EP.

CPF eligibility and Foreign Worker Levy obligations are separate. The absence of CPF does not mean that a foreign employee is exempt from every employer levy.

Skills Development Levy

Employers must pay SDL for all employees working in Singapore, including foreign employees.

rate: 0.25% of monthly total wages per employee

minimum: S$2 per employee per month

maximum: S$11.25 per employee per month

example

monthly Wage: S$3,000

calculation: S$3,000 × 0.25% = S$7.50

sdl: S$7.50

high Wage Example

monthly Wage: S$5,000

calculation: 0.25% = S$12.50, but the statutory maximum applies

sdl: S$11.25

Foreign Worker Levy (FWL)

FWL is a monthly levy paid by employers for eligible foreign workers, including Work Permit and S Pass holders, subject to sector-specific rules, worker quota and levy rates.

not For E P: Employment Pass holders are not subject to the Foreign Worker Levy.

sector Specific: FWL rates and quota requirements vary according to the worker's pass type, sector, nationality/source-country classification and other applicable conditions.

A single universal FWL rate should not be published because MOM's levy rates vary by sector and work-pass category.

Salary Payment and Payslip Rules

salary Frequency: Employers covered by the Employment Act must generally pay salary at least once a month.

salary Deadline: Salary must generally be paid within 7 days after the end of the salary period. Overtime pay has a separate 14-day deadline.

payslip Timing: For employees covered by the Employment Act, an itemised payslip should be provided together with salary payment or, if that is not possible, within 3 working days of payment.

payslip Contents:

Employer and employee names

Payment date

Basic salary or applicable basic rate

Salary-period dates

Allowances

Additional payments

Deductions

Overtime hours and overtime pay where applicable

Net salary paid

record Retention: Employers must keep detailed employment and salary records for employees covered by the Employment Act. MOM generally requires records for current employees covering the latest 2 years and for ex-employees covering the last 2 years, retained for 1 year after leaving.

Key Employment Terms (KETs)

Employees covered by the Employment Act must generally receive written Key Employment Terms.

typical Items:

Employer and employee names

Job title and main duties

Employment start date

Employment duration for fixed-term contracts

Working arrangements

Salary period

Basic salary

Fixed allowances

Fixed deductions

Overtime payment terms where applicable

point: KETs and itemised payslips are different compliance requirements. A payroll system should support both.

CPF Payment Deadline

due Date: CPF contributions are due on the last day of the calendar month.

enforcement Date: If contributions are not paid by the 14th of the following month, or the next working day when the 14th falls on a Saturday, Sunday or public holiday, CPF Board can take enforcement action.

late Interest: Late payment interest is charged at 1.5% per month from the first day after the due date, subject to CPF Board's calculation rules. The minimum interest is S$5.

example

wage Month: October

due Date: 31 October

payment Date: 20 November

result: Late-payment interest applies because payment was not made by the 14th of November.

Monthly Payroll Workflow

Confirm Employee Status

Check citizenship or PR status, work pass, age, first/second-year PR status and whether the employee is covered by the Employment Act.

Calculate Gross Salary

Separate basic salary, allowances, overtime, bonuses and other wage components and classify Ordinary and Additional Wages where CPF applies.

Calculate CPF

Apply the employee's applicable CPF rate and the 2026 wage ceilings. Deduct the employee share and record the employer share.

Calculate SDL and FWL

Calculate SDL for every employee and FWL where the worker's pass and sector make the levy applicable.

Pay Salary and Issue Payslip

Pay salary within the Employment Act deadline and provide the required itemised payslip.

Submit CPF

Submit CPF contribution details and payment through the CPF employer services by the applicable deadline.

Complete Annual IRAS Reporting

Submit employment-income information to IRAS by 1 March where the employer is required to participate in AIS and provide the required employee statement where applicable.

IR8A and Auto-Inclusion Scheme

deadline: Employers under the Auto-Inclusion Scheme (AIS) must electronically submit employees' employment-income information to IRAS by 1 March each year.

ya2026: For YA 2026, the relevant employment income is generally income earned during calendar year 2025 and is submitted by 1 March 2026.

ais Employers: AIS employers do not need to issue hardcopy Form IR8A and appendices to employees after electronic submission, although they may provide a separate statement of earnings.

non A I S: Employers not under AIS generally prepare Form IR8A and applicable appendices for employees and provide them by 1 March. The forms are not normally sent to IRAS unless requested.

important: The 1 March deadline applies to employment-income reporting for the previous calendar year; it is not a monthly payroll filing deadline.

Frequently Asked Questions (FAQ)

For Singapore Citizens and third-year-and-onward Permanent Residents aged 55 and below who earn more than S$750 per month, the 2026 employer CPF rate is 17% and the employee rate is 20%, for a combined 37%. Other ages and first- and second-year PRs have different rates.

The 2026 Ordinary Wage ceiling is S$8,000 per month. The annual CPF salary ceiling remains S$102,000, so Additional Wage calculations must also be considered.

CPF contributions are due by the last day of the calendar month. CPF Board can take enforcement action when contributions are not paid by the 14th of the following month, or the next working day if the 14th falls on a weekend or public holiday. Late-payment interest can apply.

Foreign employees who are not Singapore Citizens or Permanent Residents generally do not receive mandatory CPF contributions. S Pass and Work Permit holders can instead be subject to foreign-worker quota and levy requirements.

SDL is 0.25% of an employee's monthly total wages, subject to a minimum of S$2 and a maximum of S$11.25 per employee per month. Employers pay SDL for employees working in Singapore, including foreign employees.

Employers required to participate in the Auto-Inclusion Scheme must submit employment-income information electronically to IRAS by 1 March each year. For YA 2026, this covered employment income earned in 2025.

Legal Disclaimer: This page is general informational content, not employment, payroll, tax or legal advice. CPF rates, wage ceilings, foreign-worker levies and reporting requirements vary according to employee status, age, PR year, sector and other circumstances. Check the current CPF Board, MOM and IRAS requirements before processing payroll.

Verification Standard: Official CPF Board, MOM and IRAS sources checked in August 2026. No government endorsement, approval, accreditation or official verification of this website is claimed.

Primary Statutory References & Government Portals

Live Expat FX Tool 0% Hidden Spread

Wise Corporate Cross-Border Transfer

Sending funds for tuition, rent, or immigration fees? Retail banks sneak 2.5%–4% into exchange rates. Check today's real mid-market rate first.

High-Street Banks:~3.5% Hidden Markup

Wise Mid-Market:Zero Markup (Google Rate)

Compare Live Exchange Rate

⚡ Free live comparison • 50+ currencies supported

ACRA Compliance at a Glance

2026 OW ceilingS$8,000/month

CPF rate ≤5517% employer + 20% employee

CPF total ≤5537%

SDL0.25%; S$2 min / S$11.25 max

CPF payment deadlineLast day of each calendar month

IRAS AIS deadline1 March annually

Documents Checklist

Employment contract and Key Employment Terms
Employee identity, citizenship, PR and work-pass information
Monthly payroll register
Itemised payslips
CPF contribution submission records
SDL payment records
Foreign Worker Levy records where applicable
Leave, overtime and other employment records
IR8A and applicable Appendix 8A/8B information
AIS submission confirmation where applicable

Key Pitfalls to Avoid

✕ Applying 17% employer CPF to every employee aged 55 or below.

✓ The 17% + 20% standard applies to Singapore Citizens and third-year-and-onward PRs with monthly wages above S$750. Other worker statuses and wage levels have different tables.

✕ Treating S$8,000 as the annual CPF ceiling.

✓ S$8,000 is the 2026 monthly Ordinary Wage ceiling. The annual salary ceiling is S$102,000.

✕ Calling the 14th the CPF due date.

✓ The statutory CPF contribution due date is the last day of the calendar month. The 14th of the following month is the enforcement/payment cut-off after which late-payment action can apply.

✕ Saying itemised payslips can always be issued within 7 days.

✓ For covered employees, payslips should generally be given together with payment or within 3 working days if they cannot be given together.

✕ Saying SDL is a fixed S$11.25 for everyone.

✓ SDL is 0.25% of monthly total wages, subject to a S$2 minimum and S$11.25 maximum per employee.

✕ Using one FWL rate for all foreign workers.

✓ FWL rates depend on the worker's pass category, sector and applicable quota regime. EP holders are not subject to FWL.

✕ Saying every employer must submit an IR8A directly to IRAS.

✓ AIS employers submit employment-income information electronically to IRAS. Non-AIS employers generally provide IR8A and applicable appendices to employees and keep the records unless IRAS requests them.