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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. Many employers struggle to keep track of different contribution rates, payment timelines, and regulatory updates. Missing just one deadline could mean fines, suspended work passes, or even reputational damage.
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.
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.
There are several statutory contributions that employers need to understand:
The Central Provident Fund is the cornerstone of Singapore’s social security system. Both employers and employees must contribute monthly to CPF, which helps Singaporeans save for retirement, healthcare, and housing.
The CPF contribution rate depends on the employee’s age, citizenship, and wage level. For employees under 55 years old, the total CPF contribution is 37% of their monthly wages, comprising 17% from the employer and 20% from the employee. For employees above 55, contribution rates gradually decrease to reflect shorter remaining working years.
Employers must make CPF payments by the 14th of the following month, using the CPF Board’s online portal. Late payment incurs interest at 1.5% per month, capped at 50% of the outstanding amount. Consistent and timely CPF payments also signal reliability to employees and future hires.
The Skills Development Levy funds the Skills Development Fund (SDF) managed by SkillsFuture Singapore. The levy supports national upskilling programs that help employers train and develop their employees’ skills.
Employers must pay an SDL for all employees, including full-time, part-time, and temporary staff. The amount is calculated as 0.25% of an employee’s monthly remuneration, with a minimum of SGD 2 for employees earning below SGD 800, and a maximum of SGD 11.25 for those earning above SGD 4,500 per month.
SDL payments are made together with CPF contributions through the CPF portal. This small but important levy ensures that both companies and employees can benefit from government-subsidized training programs and continuous learning opportunities.
To encourage employers to invest in staff training, the government provides SkillsFuture Employer Credits (SFEC). Eligible employers receive credits of up to SGD 10,000 to offset out-of-pocket expenses related to workforce transformation and capability development programs.
These credits aren’t a direct statutory contribution but are tied to compliance, employers must have made at least three months of CPF contributions to qualify. Staying consistent with CPF and SDL obligations helps businesses access these additional benefits.
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.
Singapore’s statutory contribution deadlines are fixed and strictly enforced:
Missing deadlines can lead to fines, late payment interest, or suspension of work passes. Maintaining accurate payroll records and automating contributions through digital HR systems can significantly reduce compliance risks.
Managing statutory contributions like CPF, SDL, and Foreign Worker Levy can be time-consuming, especially if your company hires both local and foreign employees or operates across multiple markets. Each scheme has its own rates, payment deadlines, and reporting requirements, leaving room for costly mistakes if not handled properly.
With Glints TalentHub, you can leave all those administrative burdens behind. As your Employer of Record (EOR) partner, Glints ensures every statutory contribution is calculated, processed, and submitted accurately and on time, in full compliance with Singapore’s regulations. From payroll management to tax filings, everything is taken care of through one unified platform.
This means you can focus on what matters most, building a strong team and scaling your business, while Glints TalentHub keeps your operations compliant and worry-free.
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