Payroll and CPF.Once the company employs people.
CPF adds 17% to a local employee's salary and is due on the 14th of the following month, with no slack. Payroll software runs it for S$15 to 50 per employee a month in 2026; an accountant running it costs more and catches the leaver's tax clearance. This page is the rates, the ceiling, the dates and the choice between software and a provider.
No company yet? Then payroll is the platform's job for now.
- Employer CPF, age 55 and below
- 17%
- Employee CPF, age 55 and below
- 20%
- Wage ceiling, 2026
- S$8,000 a month
- CPF and SDL due
- 14th of next month
- Payroll software, per employee
- S$15 to 50 a month
- IR8A to each employee by
- 1 March
Rates and ceilings from the CPF Board, deadlines from IRAS. Software and provider fees are public list prices checked September 2026.
Six things payroll has to get right every month.
CPF, the mandatory pension contribution
For an employee aged 55 or below, the employer pays 17% of wages into the employee's CPF account and the employee pays 20%, deducted from salary. Both apply to ordinary wages up to S$8,000 a month in 2026, and to bonuses up to an annual ceiling of S$102,000 less the ordinary wages already subject to CPF. Rates step down in age bands above 55; the CPF Board publishes the table. Foreign employees on a pass pay no CPF at all, which is why their salary floor is set higher.
- A S$6,000 salary costs the employer S$7,020 before SDL
- CPF is calculated on the month's wages, so a bonus month is a bigger contribution month
- Citizens and PRs only; PRs in their first two years contribute at reduced rates
SDL, and the other deductions
The Skills Development Levy is 0.25% of each employee's monthly wages, at least S$2 and at most S$11.25, paid on the same CPF submission. Employees of certain ethnic groups have a small voluntary self-help fund contribution deducted by default (CDAC, ECF, MBMF or SINDA), which the employee can opt out of. There is no income tax withholding for residents; employees settle tax with IRAS themselves.
The monthly deadline
CPF and SDL for a month are due by the 14th of the following month, submitted through CPF EZPay and paid by direct debit or PayNow. Late payment carries interest at 1.5% a month, minimum S$5, and the CPF Board prosecutes employers who fall behind, so this is the one date on the calendar with no slack. Payroll software submits the file for you; an accountant running payroll does the same thing on your behalf.
The rest of the year's deadlinesPayslips, contracts and leave
The Employment Act requires an itemised payslip every month and written key employment terms within 14 days of starting. Statutory minimums are 7 days of annual leave in the first year rising to 14, 14 days of outpatient sick leave and 60 days of hospitalisation leave, 11 public holidays, 16 weeks of maternity leave and 4 weeks of paternity leave for eligible parents. Most employers offer more annual leave than the minimum; 14 to 18 days is the market for professional roles.
The year end, and leavers
By 1 March each year, every employee receives an IR8A stating last year's pay and benefits, and employers with five or more employees submit it to IRAS directly under the Auto-Inclusion Scheme. When a foreign employee leaves or their pass is cancelled, you file tax clearance (IR21) at least a month before their last day and withhold their final pay until IRAS confirms the tax due. Missing the IR21 makes the employer liable for the employee's tax.
Software or a provider
Payroll software costs S$15 to 50 per employee a month, usually with a minimum monthly fee, and handles CPF submission, payslips, leave and the IR8A. A provider running payroll for you starts at about S$50 per employee a month with a minimum of a few hundred dollars, and catches the edge cases: a leaver's tax clearance, a PR's changing rates, a bonus that crosses the ceiling. For most companies under ten people the software is enough; the accountant should review the year end.
A local employee, on top of salary.
Public list prices from the providers we compare, checked September 2026. Your assessment turns a range into a figure.
| Item | Typical range | What moves it |
|---|---|---|
| Hiring | ||
| Employer CPF contribution | 17% of wages | For employees aged 55 and below, on wages up to S$8,000 a month (2026). Lower rates above 55. |
| Skills Development Levy | 0.25% of wages | Minimum S$2 and maximum S$11.25 per employee per month. Paid with CPF. |
| Outsourced payroll, per employee per month | S$15 to 50 | Software at the low end, a provider running it for you at the top. Usually a minimum monthly fee. |
| Ongoing | ||
| Accounting and tax, small company, per year | S$900 to 3,000 | Transaction volume and whether payroll and GST are included. |
HiringShow 3 items
- Employer CPF contribution17% of wages
For employees aged 55 and below, on wages up to S$8,000 a month (2026). Lower rates above 55.
- Skills Development Levy0.25% of wages
Minimum S$2 and maximum S$11.25 per employee per month. Paid with CPF.
- Outsourced payroll, per employee per monthS$15 to 50
Software at the low end, a provider running it for you at the top. Usually a minimum monthly fee.
OngoingShow 1 items
- Accounting and tax, small company, per yearS$900 to 3,000
Transaction volume and whether payroll and GST are included.
CPF and SDL from the CPF Board. Software and provider fees are public list prices checked September 2026.
Get your exact numberWho should run it.
Software while the pay is simple, a provider when it is not. The switch point is the first leaver on a pass, or the first employee whose CPF rate changes mid-year.
Payroll software
For a company under ten people with monthly salaries and the occasional bonus. S$15 to 50 per employee a month, CPF filed automatically, payslips and leave built in. We name the one we would use and what it costs in your plan.
Your accounting firm
When the same firm already does the books. Payroll at S$50 or more per employee a month, with the tax clearance for leavers, PR rate changes and the year-end IR8A handled by the people who reconcile the accounts.
Any payroll at all
When you have no Singapore company. An employer of record runs payroll as part of its fee, and a genuine contractor invoices you. Payroll is for a company with employees on its own books.
How we are paid. The firm you go ahead with pays us a share of its fee. You pay its normal price, the same as going direct. Your plan names the firm and what it pays us.
What we tell companies about payroll.
Budget the employer cost, not the salary. A S$6,000 hire is S$7,035 a month before software, and a S$120,000 a year package with a bonus is closer to S$137,000. The difference surprises people who priced the hire on the offer letter.
Set up direct debit for CPF on day one and let the software submit. The 14th comes round twelve times a year and the CPF Board does not negotiate on interest.
The tax clearance for a leaver on a pass is where owner-run payroll goes wrong. File the IR21 a month before the last day, hold the final salary until IRAS answers, and if that sounds like something you will forget, that is the reason to pay a provider.
What people ask us
Do I pay CPF for a foreign employee on an Employment Pass?
No. CPF applies to Singapore citizens and permanent residents only. A pass holder's cost to the employer is the salary plus SDL, which is why the pass salary floor is higher than a local hire's starting pay.
What happens if I pay CPF late?
Interest at 1.5% a month, minimum S$5, from the day after the due date. Repeated late payment leads to prosecution, and directors can be personally liable. Set up direct debit and let software submit the file.
Can I pay salaries from an overseas account?
You can pay salary from anywhere, but CPF must be paid from a Singapore account through CPF EZPay, and the employer must be a Singapore entity registered with the CPF Board. A foreign company with no Singapore entity uses an employer of record instead.
How much annual leave do I have to give?
Seven days in the first year under the Employment Act, rising by one day a year to 14. The market for professional roles is 14 to 18 days from the start, and offering the statutory minimum makes hiring harder than the days saved are worth.
What is the 13th month?
An annual wage supplement equal to one month of salary, paid in December. It is customary, not required by law, unless it is in the contract or a collective agreement. Many contracts describe it as discretionary; say what you mean in the offer letter.
Should my accountant run payroll?
If the same firm does your accounting, adding payroll means one provider sees the whole picture and the year-end IR8A reconciles to the accounts. For a company under ten people with simple pay, software at S$30 a month does the job and the accountant reviews the year end.
Tell us how many people and who does your books. We'll tell you whether software is enough.
Two minutes on the form. A written plan within one business day with the per-employee cost and the software or firm we would use.