Information for Employees
An employee is entitled to CPF contributions if they meet the following conditions:
- He/she is a Singaporean or Singapore Permanent Resident (SPR)
- He/she earns more than $501 in a month.
CPF is payable for the following employees:
- Full-time employees
- Part-time employees/ casual workers
- Employees who work on a temporary/contract basis
- Employees on probation or in their last month of employment
- Employee on concurrent employment (i.e. working for more than one employer in a month)
- Students (Secondary Schools and Junior Colleges) who work outside their gazetted school holidays2
- Tertiary students (Polytechnics, ITEs and Universities) who work3
- Operationally Ready National Servicemen who are on in-camp training
- Company directors who are drawing wages
- Family workers who are receiving wages for work done for the proprietor
1 Applicable for employees aged 35 years and below.
2 CPF contributions are payable for students who work in November/December after completing their GCE ‘A’ level examinations.
3 CPF is not payable for registered students employed during vacation or term, under training programmes approved by the following institutions: National University of Singapore, Nanyang Technological University, Singapore Management University, Nanyang Polytechnic, Ngee Ann Polytechnic, Republic Polytechnic, Singapore Polytechnic, Temasek Polytechnic, Republic Polytechnic or Institute of Technical Education.
Payments that attract CPF contributions
CPF contributions should be computed based on the total monthly wages. These include payments such as overtime pay, cash incentives, allowances, commissions, bonuses.
CPF is not payable on items such as reimbursements, termination benefits (such as retirement gratuity) and gifts in kind.
For more details on the payments that attract CPF contributions, please see Annex A of the Employer’s Guide to CPF.
CPF Contribution Rates
CPF contribution rates are determined by the three factors:
- Singapore Citizen / SPR
For Singapore Citizen, CPF contribution rates are based on the rates stipulated under the CPF Act.
For SPR, CPF contributions are computed at graduated rates for the first two years. The first year rate is payable from the day he/she obtain his/her SPR status3. The second and third year rates are payable from the month following the anniversary of his/her conversion to SPR.
For example, if he/she became a SPR on 23 January 2011, the first year rate would apply from 23 January 2011. The second and third year rates will apply from 1 February 2012 and 1 February 2013 respectively.
3 The date is indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore.
Different contribution rates are applied from the first day of the month after one’s 35th, 50th, 60th, and 65th birthday.
Example: An employee’s 50th birthday falls on 13 September 2012
|CPF Contribution Rate
|For wages earned in September 2012
(above 35 to 50 years)
|For wages earned in October 2012
(above 50 to 55 years)
|36% of total wages (>$1,500)
(Employer’s share = 16%;
Employee’s share = 20%)
|32.5% of total wages (>$1,500)
(Employer’s share = 14%;
Employee’s share = 18.5%)
Different CPF contribution rates are applied on different wage bands.
Employees are entitled to CPF contributions if his/her wages are more than the amount shown in the table below:
If an employee earns more than $50 but less than $500 a month, CPF contributions would be borne solely by the employers. There should not be any CPF deductions from the employee.
(based on CPF contribution rates from September 2012)
|35 years and below
|Above 35 to 50 years
|Above 50 to 55 years
|Above 55 to 60 years
|Above 60 to 65 years
|Above 65 years
If an employee earns more than $500 per month, CPF contributions are payable by both the employee and the employer, according to the rates stipulated in the CPF Act.
Check out CPF contribution rates for more information.
Reporting of non-payment or underpayment of CPF contributions
To report non-payment or underpayment of CPF contributions, you can
- Call our hotline at 1800-221-9922 from Mondays to Fridays, 8:30 a.m. to 5:00 p.m.
- Email to firstname.lastname@example.org
- Report online at the CPF website by logging on to my cpf Online Services with your SingPass [My Requests > Other CPF Matters > Report on non-payment or underpayment of CPF contributions]
- Visit any of CPF Board’s Service Centres
Your identity will be kept strictly confidential.
Information for Employers
All employers must pay CPF contributions to their employees at the rates stipulated in Part II of the Central Provident Fund (CPF) Act.
Definition of an Employer
An employer is any person, company, association or body of persons, whether or not incorporated, employing an employee. An employer can be:
- Any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer.
- Any person trading in his own name or who has domestic worker(s). The person must register under the name shown in his identity card or passport.
- Companies which employ foreign workers holding work permits in Singapore. These employees are on the Foreign Worker Levy (FWL) Scheme and are exempted from contributing to CPF.
Definition of an Employee
An employee is any person who is employed in Singapore and any Singaporean seaman who is employed by an employer under a Contract of Service or other agreement entered into in Singapore. Some of the factors which form the contract of service are: the control over payment, duration of work, dismissal, substitution of workers and method of work.
Responsibilities of an Employer
- Employers are to pay CPF correctly and promptly for their employees.
- Employers are required to pay the employer’s and employee’s share of CPF contributions monthly for all employees (Singapore Citizens and SPRs) at the rates set out in the CPF Act. The contributions payable should be based on the employee’s actual total wages earned for the calendar month.
- CPF contributions are to be paid by the end of the month. Employers are given a grace period of 14 days after the end of the month to make payment of CPF contributions. If the 14th day of the grace period falls on a Saturday, Sunday or Public Holiday, CPF contributions can be paid by the next working day.
Penalties for Non-Compliance of the CPF Act
For non-compliance of the CPF Act, an employer is liable to the following:
- Late payment interest charged at 18% per annum (1.5% per month), starting from the first day of the following month after the contributions are due. The minimum interest payable is $5 per month.
- Fine of up to $2,500 for each offence.
- Fine of up to $10,000 for each offence for repeat offenders.
- Fine of up to $10,000 and/or imprisonment of up to 7 years if the employer deducts the employee’s share of CPF contributions but fails to pay the contributions to CPF Board.
Please note that the above states only the basic details of the obligations of an employer.
For more details on the obligations as an employer, please refer to the CPF Board’s Employers’ Guide to CPF. Please email to CPF Board at email@example.com if you require any assistance.