CPF Employer News - CPF Contribution of Employee Benefits

Are you an employer that needs to pay CPF contributions? Here is a blog answering all your dying questions:

• For Which Employees Do I Have To Pay CPF?
• What Are The Wages That Require CPF Contributions?
• How To Calculate CPF Contribution Rates?
• How And Where To Make CPF Contribution?
• When Is The Deadline For CPF Contribution?

What Is CPF Contribution?

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.

For Which Employees Do I Have To Pay CPF?

Employers must pay CPF contributions to employees who are:

1. Singaporean Citizens
2. Singapore Permanent Resident (SPR)**

AND

1. Full-time
2. Part-time
3. Temporary (contract)*

AND

1. Monthly salary above SGD 50

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

What Are The Wages That Require CPF Contributions?

Wages payable for CPF contributions:

• Ordinary Wages
• Basic Salary

• Additional Wages
• Overtime Pay (OT)
• Cash Incentives
• Allowances
• Bonuses & Commission

Check out CPF’s 9-page PDF guideline for a more detailed explanation of payments and allowances.

How To Calculate CPF Contribution Rates?

CPF Calculator - Singapore Citizens & SPR (3rd year onwards)

This calculator counts the CPF contributions payable for private-sector employees who are Singapore Citizens or 3rd year Singapore Permanent Residents (SPR).

Step 1

1. Click on the calendar icon.
2. Select the birthday of your employee*.

*only requires month and year

Step 2

1. Click on the calendar icon.
2. Select the date of CPF contribution*.

*only requires month and year

Step 3

1. Type in the ordinary wages.
2. Type in the additional wages.
3. Click on the “Calculate” button once all the fields have been filled.

Example A: Ah Huat

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.

CPF Calculator - SPR (1st and 2nd year)

This calculator computes the CPF contributions payable for private-sector employees who are 1st & 2nd year Singapore Permanent Residents (SPR).

Step 1

1. Click on the calendar icon.
2. Select the birthday of your employee*.

Step 2

1. Click on the calendar icon.
2. Select the date of CPF contribution*.

Step 3

1. Click on the dropdown list.
2. Select either 1st or 2nd-year SPR.

Step 4

1. Click on the dropdown list.
2. Select either partial employer and employee rates OR full employer and partial employee rates.

Step 5

1. Type in the ordinary wages.
2. Type in the additional wages.
3. Click on the “Calculate” button once all the fields have been filled.

Example B: Rodrigues Nicola

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.

CPF Contribution for Reservist NSmen

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.

How And Where To Make CPF Contribution?

4 ways to pay CPF contributions:

1. Cheque to CPF Board
2. Cash, NETs, or CashCard at Singpost Office
3. Direct Debit, Standing Instructions, eNETS, cheques, or Diners Club card / NETS at any AXS Stations
4. NETs at CPF online platform e-cashier and EZpay

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.

CPF EZpay

The CPF EZpay is a one-stop online platform for the employers to make their CPF contributions.

Step 1

1. Login to your employer CPF account using the UEN-registered entity.
2. Once logged in, click on the CPF EZPay to submit a new Submission.

Step 2

1. Select the month and year in which you intend to make your CPF contributions.

Step 3

1. Enter your employee’s NRIC, Name and Salaries.

The following pages will ask for your confirmation of the automatically calculated contributions and offer the available payment options.

When Is The Deadline For CPF Contribution?

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.

Need More Help?

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

Read more blogs from Jie Xin Goh