Skip Ribbon Commands
Skip to main content



CPF Contributions for your EmployeesCPF Contributions for your Employees<p>​<span lang="EN-SG">If you hire employees, you will need to make CPF contributions for them. This will help your employees meet their retirement, housing and healthcare needs. </span></p>TrueTrueTrueResources;#Forms;#Others;#



UnderstandHow do I determine CPF contributions?<p>The steps to determine CPF contributions are:</p><ol><li><p>Identify your employees.</p></li><li><p>Find out which wage payments attract CPF contributions.</p></li><li><p>Classify wages as ordinary wages and additional wages.</p></li><li><p>Apply the <span lang="EN-SG"><a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates">CPF contribution rates​</a>.</span></p></li></ol>593593
UnderstandWhat is the definition of an employer?<p>An employer can be: </p><ul><li><p>any person, company, association or body of persons, whether or not incorporated, by whom an employee is employed;</p></li><li><p>the owners of any vessel on which an employee is employed; or</p></li><li><p>any manager, agent or person responsible for the payment of wages to an employee, on behalf of an employer.</p></li></ul>591591
UnderstandWho are my employees?<p>An employee is</p><ul><li><p>any Singapore Citizen or Singapore Permanent Resident who is employed in Singapore under a <a href="" target="_blank"> <span lang="EN-SG">contract of service</span></a> by an employer otherwise than as a master, a seaman or an apprentice in any vessel; or</p></li><li><p>any Singapore Citizen who is employed under a contract of service or other agreement entered into in Singapore as a master, a seaman or an apprentice in any vessel where the owners have not been exempted from the provisions of the CPF Act.</p></li></ul><p>Your employees can include: </p><ul><li><p>Company directors </p></li><li><p>Employees on concurrent employment</p></li><li><p>Family workers </p></li><li><p>NSmen on in-camp training </p></li><li><p>Part-time employees</p></li><li><p>Temporary/ casual employees</p></li></ul><p>Find out more about <span lang="EN-SG"> <a href="/Assets/employers/Documents/WhoDoYouNeedToPayCPFFor.pdf" target="_blank">who you need to pay CPF contributions for</a> (PDF, 0.6MB)</span>. </p>594594
UnderstandWhat payments attract CPF contributions? <p>It depends on the type of wage payments your employee receives. Besides the monthly salary and annual bonus, an employee can receive other types of payments when carrying out his work.</p><p><img class="img-responsive" alt="Six payments which attract CPF contributions" src="/Assets/members/PublishingImages/6PaymentsAttractContributions.png" /></p> <p>Find out more about the <a href="/Assets/employers/Documents/Allowances_and_payments_that_attract_CPF_contributions.pdf" target="_blank">allowances and payments that attract CPF contributions</a> (PDF, 0.6MB).</p>595595
UnderstandHow do I classify wages as Ordinary Wages or Additional Wages?<p>CPF contributions are computed based on an employee's total wages. The total wages for any calendar month is the sum of an employee's Ordinary Wages (OW) for the month and the Additional Wages (AW) paid to him in that month.</p><p>It is important for employers to know the correct classification because there are different ceilings for OW and AW. This, in turn, will affect the amount of CPF contribution payable. </p>592592
UnderstandWhat are Ordinary Wages (OW)?<p>Ordinary Wages (OW) are:</p><ul><li><p>wages due or granted wholly and exclusively in respect of an employee's employment in that month; and </p></li><li><p>wages payable before the due date for payment of CPF contributions for that month.</p></li></ul><p>An example of OW is the monthly salary.</p>597597
UnderstandWhat is the Ordinary Wage ceiling?<p> <span lang="EN-US">The Ordinary Wage (OW) Ceiling limits the amount of OW that would attract CPF contributions. The OW Ceiling is capped at $6,000 currently. For example, if an employee’s OW for a calendar month is $6,500, his CPF contribution would be computed based on an OW of $6,000; CPF contribution is not required on the remaining $500.</span></p>596596
UnderstandWhat are Additional Wages (AW)?<p>​Additional Wages (AW) are:</p><ul><li><p>wages which are not granted wholly and exclusively for the month; or</p></li><li><p>wages made at intervals of more than a month.</p></li></ul><p>Examples of AW are annual bonus and leave pay.</p>615615
UnderstandWhat is the Additional Wage ceiling?<p>The amount of CPF contributions payable on AW is capped at the yearly AW Ceiling of</p><table width="100%" class="ms-rteTable-default" cellspacing="0" style="text-align:center;"><tbody><tr><td class="ms-rteTable-default" style="width:100%;"><div>​ $102,000* – Total OW subject to CPF for the year</div><div> </div><p> <em>*Equivalent to 17 months x $6,000</em></p></td></tr></tbody></table><p> <br>The AW Ceiling is applied on a per employer per year basis. Employers are required to monitor and limit the contributions on Additional Wages of their employees. This is to prevent <span lang="EN-SG"></span> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/adjustment-and-refund-of-cpf-contributions">refund of excess payment</a> and avoid situations where refunds cannot be made due to insufficient funds in their employees' CPF accounts. However, employers may apply for a <a href="/Employers/FAQ/employer-guides/hiring-employees/cpf-contributions-for-your-employees#faq2201720">single AW Ceiling</a> for transferred employees within two related companies.</p><p>You can compute the AW ceiling for your employees using the <a href="">Additional Wage Ceiling Calculator</a>. Learn more on the computation from the <a href="/Assets/employers/Documents/ExamplesonAdditionalWageCeilingComputation.pdf" target="_blank">Examples on the Computation of AW Ceiling</a> (PDF, 0.6MB)​.<br></p>622622
UnderstandWhat are some examples of mistakes made by employers when determining CPF contributions?<p>​Some mistakes made by employers when determining CPF contributions are:</p><ul><li><p>Wrong classification of Ordinary Wages and Additional Wages </p></li><li><p>Non-payment of CPF contributions on allowances and NSmen make-up pay</p></li><li><p>Underpayment of CPF contributions when wages are not paid monthly </p></li></ul><p>Read more examples of <a href="/Assets/employers/Documents/MistakesbyEmployerswhenDeterminingCPFContributions.pdf" target="_blank">mistakes by employers</a> (PDF, 0.5MB).<br></p>621621





















CPF Contributions for your EmployeesHiring Employees



Your session will be terminated soon. Click 'OK' to continue or 'Cancel' to Logout.


Your screen width is too small to display

Please adjust the width of your browser or use a desktop machine for a better web experience.

Thank you.