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Hiring Employees |
| … Securing Their Retirement |
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An employer is any person, company, association or body of persons, whether or not incorporated, employing an employee. An employer can be:
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any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer; |
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any person trading in his own name or who has domestic worker(s). The person must register under the name shown in his identity card or passport; |
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companies which employ foreign workers holding work permits in Singapore. These employees are on the Foreign Worker Levy (FWL) Scheme and are exempted from contributing CPF. |
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a) |
Submission of CPF Contribution Details by New Employers
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Submission via CPF Auto-eXcel Plus |
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As a new employer, please click here for the application to submit CPF contribution details via CPF Auto-eXcel Plus (AX Plus). You should submit your application as soon as you intend to hire your first employee. To apply, you will need your SingPass and entity’s Unique Entity Number (UEN).
Once your application has been approved, you will receive our email and welcome letter containing your CPF Submission Number (CSN), Payment Advice (CPF91) and GIRO application form. Please quote your CSN when transacting with the Board e.g. paying CPF contributions or corresponding with us.
You have a grace period of 14 days to pay the CPF contributions after the end of the month for which CPF contributions are due. If the due date falls on Saturday, Sunday or Public Holiday, CPF contributions must be paid by the next working day.
You will receive the Record of Payment (ROP) when your payment has been processed. Please check your ROP and inform the Board immediately of any inaccuracy. The ROP should be kept for future reference. If you have misplaced the ROP and need a re-print, a service charge is payable.
For more information on CPF contribution rates and other employer-related matters, please click here. |
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Registration of New Employee |
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For every new employee, you are required to complete the New Employee Contribution Form (Form CPF 92) if you are submitting the CPF contributions via hardcopy Payment Advice (Form CPF 91). Form CPF 92 has to be submitted with Form CPF 91. However, if you are submitting CPF contribution details via CPF e-Submission, Form CPF 92 is not required. | |
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b) |
CPF Contributions |
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As an employer, you need to ensure that your employees' CPF contributions are paid on time. CPF contributions help Singaporeans to save for their retirement, pay medical bills, own homes, and buy insurance for themselves and their family members. CPF contributions must be paid monthly for all employees (Singapore Citizens and Singapore Permanent Residents) at the rates set out in the CPF Act from the first day of their employment. If the employment does not start on the first day of a month, the contributions payable for that month should be based on the employee's actual wages up to the end of the month. The employee's share of the CPF contributions is recovered through deduction from the employee's wages. This occurs when wages are paid out. CPF contributions are also payable for the following employees:
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Company Directors |
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Part-time/Casual Employees |
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Family Workers |
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National Service In-Camp Training |
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Concurrent Employment | Read our Employers' Guide to CPF for more information on CPF contributions for employees. |
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c) |
Computation of CPF |
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CPF contributions are computed based on the employee's total wages for a calendar month. Under the CPF Act, wages are defined as remuneration in money due or granted to an employee in respect of his employment. These include overtime pay, allowances, cash awards, commissions and bonuses.
Read our Employers' Guide to CPF for more information on the type of payments that attract CPF contributions. For the purpose of computing CPF contributions, wages are classified as follows:
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Ordinary Wages are wages due or granted wholly and exclusively in respect of an employee's employment in that month and payable before the due date for payment of CPF contributions for that month.
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Additional Wages are wages which are not granted wholly and exclusively for the month. Examples are annual bonus, leave pay, incentive and other payments made at intervals of more than a month.
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The total amount of an employee's wages for any calendar month is the sum of his Ordinary Wages for the month and the Additional Wages paid to him in that month.
Total Wages (TW) = Total Ordinary Wages (OW) + Total Additional Wages (AW)
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Ordinary Wage (OW) Ceiling |
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The Ordinary Wage (OW) Ceiling sets the maximum amount of Ordinary Wages on which CPF contributions are payable per month.
From 1 September 2011, the OW Ceiling is revised from $4,500 to $5,000 per month.
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Additional Wage (AW) Ceiling |
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The Additional Wage Ceiling sets the maximum amount of Additional Wages on which CPF contributions are payable per year. Find out more about calculating Additional Wage Ceiling. |
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Voluntary Contribution (VC) Limit |
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The maximum amount of voluntary contributions for a person is the difference between the CPF Annual Limit of $30,600 and the amount of mandatory contributions made for the calendar year. No further voluntary contributions can be made if the mandatory and voluntary contributions have already reached the prevailing CPF Annual Limit of $30,600.
Mandatory contributions (MC) are compulsory contributions required under the CPF Act. These include CPF contributions on the Ordinary and Additional Wages for employees, and Medisave contributions by self-employed persons.
The maximum amount of voluntary contributions that can be made for the calendar year is as follows:
Maximum amount of VC = $30,600 - MC
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Any voluntary contributions paid in excess of the approved limit will be refunded without interest. Find out more about how the Limit on CPF contributions is computed. | |
When wages are not paid according to the calendar month, e.g. weekly or fortnightly, you have to apportion the wages according to the calendar month for which CPF contributions are paid. The apportionment is necessary to determine the Ordinary Wages for the calendar month on which CPF contributions are payable.
Example
Company XYZ pays its employees wages every week. In the table below, computation of CPF contributions for the month of February is based on the wages from 1 to 28 February i.e. wages for 26 to 31 January for the first week and 1 March for the last week are excluded.
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February |
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MON |
TUE |
WED |
THUR |
FRI |
SAT |
SUN |
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26 |
27 |
28 |
29 |
30 |
31 |
1 |
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2 |
3 |
4 |
5 |
6 |
7 |
8 |
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9 |
10 |
11 |
12 |
13 |
14 |
15 |
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19 |
20 |
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22 |
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23 |
24 |
25 |
26 |
27 |
28 |
1 |
The rate of CPF contribution is dependent on 3 factors:
- Singapore Citizen or Singapore Permanent Resident (SPR)
- Age group
- Wage band
CPF contribution rates (from 1 September 2011) for Singapore Citizen and SPR employees can be found in Annex B to F of the Employers' Guide to CPF.
The contribution rates in respect of an employee above 35, 50, 55, 60 or 65 years of age shall be applied from the first day of the month after the month of his 35th, 50th, 55th, 60th or 65th birthday.
Example:
An employee’s 50th birthday falls on 13 September 2011.
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CPF contribution rate |
For wages earned in
September 2011
(Above 35 to 50 years) |
For wages earned in
October 2011
(Above 50 to 55 years) |
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36% of total wages (>$1,500)
(Employer’s share = 16%;
Employee’s share = 20%) |
30% of total wages (>$1,500)
(Employer’s share = 12%;
Employee’s share = 18%) |
- Foreign Employees Who Obtain SPR Status
CPF contributions are payable once a foreign employee obtains SPR status. To help the SPR employee adjust to the lower take-home pay, both the employer and employee will contribute at graduated rates for the first two years.
The first year rate is payable from the day the employee obtains his SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore.
The second and third year rates are payable from the month following the anniversary of the employee’s conversion to a SPR. For example, if your employee became a SPR on 23 January 2011, the first year rate would apply from 23 January 2011. The second and third year rates will apply from 1 February 2012 and 1 February 2013 respectively.
Foreigners who have obtained their SPR status, should only maintain one CPF account. Employers should advise such employees to inform CPF Board of their new Singapore Identity Card Number so that their previous CPF account (if any) can be merged with their new CPF account. CPF contributions for SPRs into CPF accounts with the prefix SA/SB/SD/SF/TC/TF will be rejected.
Please click here to find out how such employees can inform CPF Board of their new Singapore Identity Card Number.
- Types of SPR contributions
SPR employees and their employers have the option to jointly apply to CPF Board to contribute at other prescribed rates during the employee’s first two years of obtaining the SPR status.
A summary of the options available is as follows:
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Option |
Employer |
Employee |
Application |
Contribution Rates
(from 1 September 2011) |
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1st year SPR |
2nd year SPR |
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1. |
Graduated rate |
Graduated rate |
Mandatory once employee obtains SPR |
Please click here for the Graduated Employer and Employee (G/G) Contribution Rates
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Please click here for the Graduated Employer and Employee (G/G) Contribution Rates |
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2. |
Full rate |
Graduated rate |
Upon joint application |
Please click here for the Full Employer and Graduated Employee (F/G) Contribution Rates
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Please click here for the Full Employer and Graduated Employee (F/G) Contribution Rates |
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3. |
Full rate |
Full rate |
Upon joint application |
Please click here for the Full Employer and Employee (F/F) Contribution Rates
(Also applicable for SPR in the 3rd year and onwards of obtaining SPR status) |
Option (1) applies once your employee obtains his SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore. For options (2) and (3), the employer and employee must jointly apply to the Board using the prescribed form CNR/PR/94. Once the application is approved, it is irrevocable. These rates will cease to apply upon a change of employment within the first two years i.e. the rates will go back to the graduated rates.
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d) |
Submission of CPF Contribution Details |
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You can submit CPF contribution details of your employees through the following:
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CPF e-Submission |
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This is a simpler, faster and more secure mode of submission. There are several ways in which you can do an electronic submission:
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CPF Auto-eXcel Plus |
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File Transfer Protocol (FTP) using payroll system (via CPF Auto-eXcel Plus) |
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AXS |
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Provident and Tax (PAT) | Click here for more information on electronic submission |
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Submission Using Hardcopy Payment Advice |
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Since 2005, employers with 11 or more employees have to pay a Processing Fee (PF) of $7 per employee per month, if they submit CPF contribution details using hardcopy Payment Advices. The same PF will be extended to employers with 4 to 10 employees in time to come. Subsequently, employers with 3 or fewer employees may also need to pay the processing fee if they are submitting their CPF contribution details via the hardcopy Payment Advice. Click here for more information on hard copy submission. | |
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e) |
Modes of Payment |
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You need to submit CPF contribution details when you pay CPF contributions for your employees. There are various payment modes which you can consider:
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Interbank GIRO |
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This is the most convenient option for employers as they do not have to get any signatory to make payment.
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Standing Instructions |
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This is suitable for employers whose CPF contributions for their employees do not vary each month. You only need to give a one-time standing instruction to pay a fixed amount for your employees every month.
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Internet Banking (eNETS) |
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This is suitable if you want to retain tight control over your cash flow and yet enjoy the convenience of electronic payment.
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Cheques |
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Cheques should be crossed and made payable to CPF Board. The reverse side of each cheque must bear the CPF Submission Number (CSN). Cheque payments can be made at any CPF Service Centres. All cheque payments should be accompanied by the relevant payment forms.
Please remember to:
- date and sign the cheque correctly;
- ensure that the words and figures tally;
- counter sign against any amendment/ alteration; and
- write the “CPF Submission Number (CSN)” on the reverse side of the cheque
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Cash |
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Cash payment can only be made at any Singapore Post Office. A receipt will be issued for cash payments at the Singapore Post Office. Please do not send cash through post.
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NETS/CashCard |
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Payment by NETS/CashCard can be made at any Singapore Post Office. A receipt will be issued for payment made.
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Diners Club Credit Card/D-Pay (ATM cards) |
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Payment by Diners Club Credit Card/D-Pay (ATM cards) can be made at any AXS station located islandwide. A receipt will be issued for payment made.
| Click here for more information on the various modes of payment. The grace period for the payment of CPF contributions is 14 days after the end of the month for which such contributions are due and payable. If the due date falls on a Saturday, Sunday or Public Holiday, CPF contributions must be paid by the next working day. Otherwise, interest on late payment would be imposed. Find out more about enforcement of CPF Contributions. |
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f) |
Additional Medisave Contribution Scheme (AMCS) |
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Employers can contribute more to their employees’ Medisave account through the AMCS. Each year, employers may contribute up to $1,500 per employee. The employees may use the additional Medisave contribution to purchase approved personal medical insurance, or meet healthcare expenses. AMCS contributions are not part of the prevailing CPF Annual Limit of $30,600 for the calendar year. Click here for more information on AMCS. |
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g) |
When an Employee Resigns During the Year |
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If the employee resigns in the current year, the AW Ceiling has to be recalculated based on the actual Ordinary Wages subject to CPF, paid up till the last month of employment. The employer should then pay any shortfall in the CPF contributions together with the employee’s contributions for his last month of employment. For refund of excess CPF contributions (if any), the employer should submit the refund application form, CNR/FORM CAPVC, online or print and send it to the Refund Management Section. | | |
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