A guide to CPF contributions for foreign employers

Understanding Central Provident Fund obligations when hiring in Singapore through an EOR or local entity.

What is CPF?

The Central Provident Fund (CPF) is Singapore's mandatory social security savings scheme. Both employers and employees make monthly contributions based on the employee's salary.

Current contribution rates

For employees aged 55 and below:

Employer contribution: 17% of ordinary wages
Employee contribution: 20% of ordinary wages
Total: 37% of ordinary wages

Rates are lower for employees above 55 and for the first two years of employment for permanent residents.

Ordinary wages ceiling

CPF contributions are subject to an ordinary wage ceiling of $6,800 per month. Any salary above this amount is not subject to additional CPF contributions on the ordinary wage component.

Additional wage ceiling

There is also an additional wage ceiling for bonuses and ad-hoc payments, calculated annually.

As a foreign employer, what do I need to know?

If you hire Singapore citizens or permanent residents — whether through an EOR or your own entity — CPF contributions are mandatory. Using an EOR like Red Dot People means we handle all CPF calculations, submissions, and compliance on your behalf.

Common mistakes to avoid

Late submissions: CPF contributions must be paid by the 14th of the following month

Incorrect rates: Rates change based on age and PR status

Missing additional wages: Bonuses and ad-hoc payments also attract CPF

How we help

Our payroll team ensures accurate CPF calculations every month, with full transparency through detailed reporting.