CPF Contribution Guide for Employers in Singapore

CPF contributions are a legal mandate for all employers of Singaporean citizens and permanent residents, designed to ensure their employees' retirement adequacy, healthcare needs, and housing aspirations. As a Singaporean employer, you’re responsible for calculating and submitting the right amounts based on your employee’s age and wage.

What CPF contributions are and why they matter

The Central Provident Fund (CPF) is Singapore’s compulsory social security system. It helps Singaporean employees save for retirement and housing, as well as healthcare through monthly contributions from both employers and employees.

CPF rates are not fixed across the board — they vary based on the employee’s age to support both retirement savings and practical income needs across different stages of life.

Updated CPF contribution rates for 2025

CPF contributions are a percentage of the employee’s monthly earnings, which include both Ordinary Wages (OW) and Additional Wages (AW). Although the total CPF amount is split between employer and employee, the employer rates are typically lower.

• Employees under 55 years old

Employer: 17%

Employee:20%

Total: 37%

• Ages 55 to 60

Employer: 14.5%

Employee: 15%

Total: 29.5%

• Ages 60 to 70

Employer: 11%

Employee: 9%

Total: 20%

• Above 70 years old

Employer: 7.5%

Employee: 5%

Total: 12.5%

Whether you're running a large corporation or a small business, CPF compliance is not optional for payroll in Singapore. Make sure that you check the official rates each year and use reliable tools to avoid mistakes.

• Contributions must be based on both Ordinary Wages and Additional Wages, including salary, bonuses, and commissions.
• Keep detailed payroll and CPF payment records. These may be required during audits or if there’s a dispute.
• CPF payments are due by the 14th of every month. Late payments can lead to penalties and interest charges.
• Keep employees informed about their CPF contributions, especially when there are changes due to age brackets or bonuses.

Using a solution like Adaptive Pay takes the manual work out of CPF contributions. From calculating salaries to handling tax filing, everything is automated and accurate to streamline payroll in Singapore. The software even links with attendance and leave modules, saving time and reducing risk. You can book a demo or watch a video walkthrough on their website to explore the features.

About the company:

Adaptive Pay is a groundbreaking cloud-based HRMS and payroll software that simplifies and automates HR and payroll management for Singapore businesses. The software adheres completely to Singapore's employment laws and regulations, rendering it a highly suitable option for local businesses. A notable characteristic of Adaptive Pay is its user-friendly interface. The implementation of advanced security measures by Adaptive Pay guarantees the confidentiality and security of sensitive employee data.