Singapore CPF & IRAS
Employer Compliance Guide 2025
UniqHRM automates statutory payroll compliance so your team can process payroll with confidence — accurate calculations, on-time submissions and full audit trails.
What Is CPF?
The Central Provident Fund (CPF) is Singapore’s mandatory social security savings scheme. Both employers and employees contribute a percentage of the employee’s ordinary wages and additional wages into the employee’s CPF accounts every month. CPF contributions fund retirement, housing, and healthcare for Singaporean Citizens and Permanent Residents.
Who Must Contribute to CPF?
CPF contributions are required for the following categories of employees:
- All Singapore Citizens (SC) employed under a contract of service
- All Permanent Residents (PR) — at graduated rates in their first two years
- Part-time employees earning more than S$50/month
- Employees working beyond the official retirement age of 63 — at reduced rates
- Employees on fixed-term contracts, shift workers, casual workers earning above the threshold
Who is exempt: Foreign employees on Employment Pass, S Pass, or Work Permit are not subject to CPF. Employers pay the Foreign Worker Levy (FWL) separately for Work Permit holders. Self-employed persons manage their own Medisave contributions.
IRAS Obligations for Singapore Employers
In addition to CPF, Singapore employers have ongoing obligations to the Inland Revenue Authority of Singapore (IRAS) and must pay the Skills Development Levy (SDL) every month.
- Auto-Inclusion Scheme (AIS): Employers with 5 or more employees must submit IR8A employment income data directly to IRAS by 1 March each year. The AIS allows IRAS to pre-fill employees’ tax returns automatically.
- IR8A Form: The annual return of employee income showing total gross salary, CPF contributions and tax deductions for each employee — due 1 March for the preceding year.
- IR21 Tax Clearance: Required when a foreign employee leaves Singapore or is transferred overseas. Must be filed at least one month before the employee’s departure date. Employer must withhold final salary until IRAS issues tax clearance.
- Skills Development Levy (SDL): 0.25% of each employee’s gross monthly wages (minimum S$2.00, maximum S$11.25 per employee per month). Payable monthly alongside CPF contributions via the CPF Board e-Submit portal.
- Self-Help Group (SHG) Contributions: Employee deductions for CDAC, Mendaki, SINDA or ECF based on ethnicity — remitted alongside CPF each month by the employer.
Singapore Payroll Filing Calendar
CPF Contribution Rates (2025)
Contribution rates are based on Ordinary Wages (OW) up to the Ordinary Wage Ceiling of S$6,800/month (effective 1 January 2025). Rates vary by employee age group:
| Employee Age Group | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 15% | 16% | 31% |
| Above 60 to 65 | 11.5% | 10.5% | 22% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
PR Year 1 and Year 2 have reduced graduated rates — see the CPF Contribution Guide for PR tables. Full SC rates apply from PR Year 3 onwards.
CPF Wage Ceilings (2025)
| Ceiling Type | Amount | Notes |
|---|---|---|
| Ordinary Wage (OW) Ceiling | S$6,800/month | Raised from S$6,300 on 1 January 2025 |
| Additional Wage (AW) Ceiling | S$102,000/year | Minus total OW already contributed for the year |
Penalties for CPF and IRAS Non-Compliance
Automate Singapore Payroll Compliance with UniqHRM
UniqHRM is built with Singapore statutory payroll requirements embedded at the core — not bolted on as an afterthought. Every pay run calculates CPF, SDL and SHG contributions automatically for each employee based on their age, citizenship status and wage type.
- CPF rates applied automatically by employee age group and SC/PR/Year status
- OW ceiling (S$6,800) and AW ceiling enforced per pay run
- PR Year 1, Year 2 and Year 3+ graduated rates configured per employee
- SDL calculated at 0.25% with correct S$2 minimum and S$11.25 maximum
- SHG deductions (CDAC, Mendaki, SINDA, ECF) applied by employee ethnicity
- CPF e-Submit file generated for direct upload to CPF Board portal
- IR8A data extracted for IRAS AIS submission by 1 March deadline
- MOM-compliant itemised payslips with all 12 required fields generated per employee
Let UniqHRM Handle the Calculations So You Don’t Have To
Book a demo and see how UniqHRM automates statutory payroll compliance for your team — accurate, on time, and fully auditable.