Posted on: 2021-08-02
Are you an employer that needs to pay CPF contributions? Here is a blog answering all your dying questions:
The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from employers and employees.
The CPF contribution rates for employers range from 7.5% to 17% (updated on 1st January 2016) depending on their age and citizenship.
Employers must pay CPF contributions to employees who are:
AND
AND
Employers are required to pay CPF contributions for their 1st and 2nd-year SPR(s) if they both applied for CPF contributions.
*Freelancers are INELIGIBLE for CPF contributions
**1st and 2nd-year SPR(s) have to be jointly applied with employers to contribute at full employer-full employee rates
Wages payable for CPF contributions:
Check out CPF’s 9-page PDF guideline for a more detailed explanation of payments and allowances.
This calculator counts the CPF contributions payable for private-sector employees who are Singapore Citizens or 3rd year Singapore Permanent Residents (SPR).
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*only requires month and year
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*only requires month and year
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Example A: Ah Huat
Birthday | 10 February 1984 |
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CPF Contribution Date | 22 July 2020 |
Ordinary Wage (e.g. basic salary) | SGD 1,800 |
Additional Wage (bonus, commission, allowance, incentive, and overtime pay) | SGD 500 |
Ah Huat is a Singaporean delivery driver who earns a monthly salary of SGD 1,800. Not to mention, his employer has agreed to pay him a bonus of SGD 500 for his excellent performance throughout the year.
As evident from the picture above, Ah Huat's boss can easily input Ah Huat's personal information into the respective fields, and the CPF calculator will calculate the results.
The CPF calculator will compute the employer’s payable CPF contribution - SGD 851.
This calculator computes the CPF contributions payable for private-sector employees who are 1st & 2nd year Singapore Permanent Residents (SPR).
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Partial Employer & Partial Employee Rates is only chosen when both employer and employee decide to contribute a small % of the income to CPF.
Partial Employer & Partial Employee Rates = (Employer; Partial) + (Employee; Partial)
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Example B: Rodrigues Nicola
Birthday | 12 December 1990 |
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CPF Contribution Date | 22 August 2020 |
Citizenship | 1st Year SPR |
CPF Type | Partial Employer & Partial Employee Rates |
Ordinary Wage (e.g. basic salary) | SGD 1,800 |
Additional Wage (bonus, commission, allowance, incentive, and overtime pay) | SGD 500 |
Nicola is a reach-truck operator who earns SGD 1,800 per month. He was given a bonus of SGD 500 for his good performance throughout the year. As Nicola’s employer, you can use the CPF calculator to count his CPF contributions.
As shown above, Nicola’s employer can input Nicola’s personal information into the CPF calculator.
Results will be shown immediately once all the information has been computed.
You will need to pay SGD 207 to Nicola’s CPF account.
As an employer in Singapore, you must pay your male staffs who are heading back for reservists their full salary, including the employer’s CPF contributions.
Companies can claim the make-up pay from MINDEF/SPF/SCDF.
4 ways to pay CPF contributions:
There are 4 ways to pay CPF contribution as an employer.
The 1st, 2nd, and 3rd method are for employers who prefer physical transactions of funds - by cash, NETs, or cheque. There will be staffs to assist those who require assistance.
For employers who prefer e-transactions, you can use the e-cashier service or EZpay to make your CPF contribution.
The CPF EZpay is a one-stop online platform for the employers to make their CPF contributions.
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The following pages will ask for your confirmation of the automatically calculated contributions and offer the available payment options.
CPF contribution is expected to be done by the last day of the month.
Businesses are given till the 14th day of the following month to make their CPF contributions.
Legal actions will be taken against non-compliant employers.
This blog was last updated on 27th July 2021. Information may be subjected to changes in the future.
Please visit the CPF website for more details.
Written by
Jie Xin Goh
Digital Marketing Executive
For more information or enquiries, please contact Jie Xin Goh at hello@workclass.co