Expanding your business or hiring in Singapore can quickly get complicated, not because of finding the right talent, but because of the compliance maze that follows.
For companies managing both local and foreign employees, these statutory contributions can feel like an administrative headache. That’s why more businesses are partnering with Employer of Record (EOR) providers to handle compliance end-to-end, from payroll and taxes to statutory contributions
This guide breaks down everything you need to know about statutory contributions in Singapore, from what’s mandatory to how you can simplify compliance as your team grows.
What Are Statutory Contributions in Singapore
When you employ people in Singapore, you’re not just paying salaries. You also have a legal responsibility to make statutory contributions, mandatory payments to government-regulated schemes that support employees’ welfare, healthcare, and retirement.
These contributions form the foundation of Singapore’s social security system, ensuring that both employers and employees share the responsibility of long-term financial and healthcare protection.
Singapore Statutory Contributions at a Glance
| Contribution | Who it applies to | Who pays | General payment timing |
|---|---|---|---|
| CPF | Eligible Singapore Citizens and Permanent Residents | Employer and employee | By the 14th of the following month |
| SDL | Local and foreign employees working in Singapore | Employer | Submitted with CPF |
| Foreign Worker Levy | Work Permit and S Pass holders | Employer | By the 17th of the following month |
| SHG contributions | Eligible employees based on the relevant fund rules | Deducted from employee wages | Submitted with CPF |
Key Statutory Contributions in Singapore
There are several statutory contributions that employers need to understand:
1. Central Provident Fund (CPF)
The Central Provident Fund, commonly known as CPF, is Singapore’s mandatory social security savings system.
CPF contributions help eligible employees save for retirement, healthcare and housing. Both the employer and employee contribute a percentage of the employee’s wages.
Employers must generally pay CPF contributions for employees who:
- Are Singapore Citizens or Singapore Permanent Residents
- Are employed in Singapore under a contract of service
- Earn total wages of more than SGD 50 per month
Eligible employees can include company directors, part time employees, casual employees and family members who receive wages for work performed.
Foreign employees who are not Singapore Citizens or Permanent Residents are generally exempt from CPF contributions.
The following rates apply to Singapore Citizens and Permanent Residents from their third year onward who earn more than SGD 750 per month.
| Employee age | Employer contribution | Employee contribution | Total contribution |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Employees earning more than SGD 50 but not more than SGD 500 per month generally do not have to make an employee contribution. The employer contribution still applies.
Graduated rates apply to employees earning between SGD 500 and SGD 750 per month.
Different rates also apply to Permanent Residents during their first and second years of Permanent Resident status. Employers should confirm the date the employee obtained Permanent Resident status before calculating CPF.
CPF Wage Ceilings for 2026
CPF contributions are calculated using Ordinary Wages and Additional Wages.
Ordinary Wages
Ordinary Wages generally refer to wages earned wholly and exclusively for employment during a particular month. Monthly salary, allowances and overtime pay may fall within this category.
From 1 January 2026, the Ordinary Wage ceiling is SGD 8,000 per month.
This means that when an employee earns more than SGD 8,000 in Ordinary Wages, CPF contributions on those wages are generally calculated using the SGD 8,000 ceiling.
Additional Wages
Additional Wages generally refer to payments that are not granted exclusively for a single month. Examples can include annual bonuses, leave pay and an Annual Wage Supplement.
The Additional Wage ceiling is calculated using the following formula:
SGD 102,000 minus the employee’s total Ordinary Wages subject to CPF for the year
Employers should calculate Ordinary Wages and Additional Wages separately because different ceilings apply.
CPF Calculation Example
Consider a Singapore Citizen aged 40 who earns SGD 8,000 per month.
The applicable rates are:
| Contribution | Calculation | Amount |
|---|---|---|
| Employer CPF | SGD 8,000 × 17% | SGD 1,360 |
| Employee CPF | SGD 8,000 × 20% | SGD 1,600 |
| Total CPF | SGD 8,000 × 37% | SGD 2,960 |
The employer submits the complete SGD 2,960 contribution to the CPF Board. The employer may deduct the employee’s SGD 1,600 portion from the employee’s wages.
If the employee earns SGD 10,000 in monthly Ordinary Wages, the CPF calculation would generally still use the SGD 8,000 Ordinary Wage ceiling.
2. Skills Development Levy (SDL)
The Skills Development Levy is a compulsory employer contribution for employees working in Singapore. It generally covers local and foreign employees, including full time, part time, temporary and casual employees.
The levy is calculated at 0.25% of each employee’s total monthly wages:
| Monthly wages | SDL payable |
|---|---|
| Below SGD 800 | Minimum SGD 2 |
| SGD 800 to SGD 4,500 | 0.25% of monthly wages |
| Above SGD 4,500 | Maximum SGD 11.25 |
Employers should calculate the levy for each employee, add the amounts together and round the total down to the nearest dollar. SDL is generally submitted through CPF EZPay together with CPF contributions.
3. Foreign Worker Levy (FWL)
The Foreign Worker Levy is a monthly payment employers must make for eligible Work Permit and S Pass holders. It is designed to regulate the number and composition of foreign workers employed in Singapore.
The levy does not apply to every foreign employee. Employment Pass holders, for example, are not subject to the Foreign Worker Levy.
For Work Permit holders, the rate depends on factors including:
- The employer’s sector
- The worker’s skill classification
- The number of foreign workers employed
- The employer’s available foreign worker quota
Since 1 September 2025, the S Pass levy has been SGD 650 per month across all sectors and levy tiers.
Employers must generally pay the levy by the 17th of the following month, or the next working day when the due date falls on a weekend or public holiday.
4. Self Help Group contributions
Employers may also need to deduct contributions to Self Help Group funds from eligible employees’ wages.
These funds support lower income households and community development initiatives. The applicable fund generally depends on the employee’s community or religion.
The four main funds are:
- Chinese Development Assistance Council Fund
- Eurasian Community Fund
- Mosque Building and Mendaki Fund
- Singapore Indian Development Association Fund
Contribution amounts are based on the rules of the relevant fund and the employee’s monthly total wages.
Employers are responsible for identifying the applicable fund, deducting the correct amount from the employee’s salary and submitting it with CPF contributions.
Employees who wish to opt out or contribute a different amount may need to contact the relevant Self Help Group directly. Employers should not automatically change the contribution without the appropriate instruction or documentation.
Is 13th Month Salary Compulsory in Singapore?
The 13th-month salary, often referred to as the Annual Wage Supplement (AWS), is not compulsory under Singapore law. It’s a discretionary payment that employers may choose to provide, usually equivalent to one month’s salary, and is commonly given at the end of the year.
However, while it isn’t legally required, many companies in Singapore still offer the 13th-month salary as part of their employment practice, especially in sectors where it has become an industry norm. The decision to grant AWS typically depends on company policy, contractual agreements, or collective arrangements with unions.
Timeline and Payment Compliance
Employers should include the following deadlines in their monthly payroll calendar.
| Payment | Deadline |
|---|---|
| CPF | By the 14th of the following month |
| SDL | Submitted with CPF |
| Self Help Group contributions | Submitted with CPF |
| Foreign Worker Levy | By the 17th of the following month |
CPF contributions become due at the end of each calendar month. Employers should submit them by the 14th of the following month to avoid late payment interest and enforcement action.
For example, CPF contributions for July should be submitted by 14 August.
Employers should also allow enough processing time for payment approval, payroll corrections and unsuccessful bank transactions.
Simplify Statutory Contributions and Payroll Compliance
Managing CPF, SDL, foreign worker levies and payroll deadlines becomes more complex when your team includes different nationalities, work passes and employment arrangements.
Glints TalentHub helps you hire, onboard, pay and manage employees compliantly in Singapore. Through Employer of Record and payroll support, you can reduce administrative work while ensuring statutory contributions are calculated and submitted accurately.
Talk to a Singapore hiring expert.
Frequently Asked Question about Statutory Contribution in Singapore
What are the mandatory employer contributions in Singapore?
The main employer obligations can include CPF, the Skills Development Levy and foreign worker levies. Employers may also need to deduct and submit applicable Self Help Group contributions from employee wages.
Do employers pay CPF for foreign employees?
CPF is generally not payable for employees who are not Singapore Citizens or Permanent Residents. Employers may still need to pay the Skills Development Levy and, for eligible Work Permit or S Pass holders, a foreign worker levy.
What is the maximum employer CPF contribution in 2026?
For an employee aged 55 or below, the employer rate is 17%. With the 2026 Ordinary Wage ceiling of SGD 8,000, the maximum employer contribution on monthly Ordinary Wages is generally SGD 1,360.
Is SDL payable for foreign employees?
Yes. SDL generally applies to local and foreign employees working in Singapore, including part time, temporary and casual employees.
Is a 13th month salary mandatory in Singapore?
No. An Annual Wage Supplement is not automatically required by law. It becomes payable when it is included in the employment contract, collective agreement or established company policy.
When must employers pay CPF contributions?
CPF contributions are due at the end of the calendar month. Employers should submit payment by the 14th of the following month to avoid enforcement action and late payment interest.
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