What is CPF?
The Central Provident Fund (CPF) is Singapore's mandatory social security savings scheme. As an employer, you are legally required to make monthly CPF contributions for all employees who are Singapore Citizens (SC) or Singapore Permanent Residents (SPR) earning more than S$50 per month.Who Needs CPF Contributions?
- Singapore Citizens (SC) — mandatory from first day of employment
- Singapore Permanent Residents (SPR) — mandatory from first day of employment
- Foreign employees — NOT required (Employment Pass, S Pass, Work Permit holders)
Current CPF Contribution Rates (2025)
For employees aged 55 and below, the total contribution rate is 37% of ordinary wages (capped at S$6,800/month):| Component | Employer Share | Employee Share | Total |
|---|---|---|---|
| Ordinary Wages (OW) | 17% | 20% | 37% |
CPF Accounts Breakdown
Contributions are allocated across three accounts:- Ordinary Account (OA) — 23% of wages — for housing, insurance, investment, and education
- Special Account (SA) — 6% of wages — for retirement and investment in retirement-related financial products
- MediSave Account (MA) — 8% of wages — for healthcare and medical insurance
Payment Deadlines
CPF contributions must be paid by the last day of the following month. For example, March contributions are due by 30 April.Late payment penalties:
- 1.5% interest per month on overdue amount
- Additional fines up to S$5,000 and/or imprisonment for repeated non-compliance
Common Compliance Mistakes
- Not including allowances and bonuses in CPFable wages
- Missing the contribution deadline
- Incorrectly classifying employees vs. contractors
- Forgetting to include Additional Wages (AW) such as annual bonuses
- Not updating contribution rates when employees cross age thresholds
Practical Tips for Employers
- Use CPF EZPay for easy online submission
- Set up automated payroll systems that calculate CPF contributions
- Keep records of all CPF payments for at least 5 years
- Review employee classifications annually to ensure correct CPF treatment