CPF contributions for your first hire
Rates, deadlines, and the wage ceiling changes that took effect in January.
What CPF do I need to pay when I hire my first employee?
As a Singapore employer you must pay CPF for employees who are citizens or permanent residents earning more than fifty dollars a month. Both employer and employee shares are due by the fourteenth of the following month through the CPF EZPay system. Contribution rates depend on the employee's age, and CPF is calculated up to the Ordinary Wage ceiling, which rises again this year.
Your first hire turns you into an employer with monthly CPF obligations. The mechanics are simple once you have run one cycle.
Who you pay CPF for
CPF is payable for employees who are Singapore citizens or permanent residents earning more than S$50 a month. Two shares exist — the employer's, paid on top of wages, and the employee's, deducted from them — and they do not start together:
- Wages over S$50 up to S$500: the employer contributes at the full rate; the employee share is nil.
- Wages over S$500 but under S$750: the employer contributes at the full rate; the employee share is phased in gradually, so take-home pay does not fall off a cliff as wages rise.
- Wages of S$750 and above: both shares apply at the full rates for the employee's age band.
Foreign employees are outside CPF. A levy is not automatic in their place either: a foreign worker levy applies to Work Permit and S Pass holders, while Employment Pass holders attract no levy.
Rates and the wage ceiling
Contribution rates depend on the employee's age band, with the highest total rate for younger workers. CPF is calculated on wages up to the Ordinary Wage ceiling — S$8,000 a month from January 2026, within an annual salary ceiling of S$102,000. The ceiling has been rising in steps, so confirm the current figure before running payroll; using last year's under-contributes.
The monthly deadline
Contributions are due by the last day of the calendar month in which the wages are paid, submitted through CPF EZPay.
The widely-quoted "14th" is a different thing: if contributions are still unpaid after the 14th of the following month, the CPF Board charges late-payment interest (1.5% per month, minimum S$5) and may begin enforcement action. Treating the 14th as the deadline means running two weeks late every month and accruing interest. Your CPF dates sit alongside your other obligations in the deadline tracker.
Don't forget IR8A
Employers also report employees' earnings annually. If you have five or more employees you are in the Auto-Inclusion Scheme, with IR8A information submitted to IRAS by 1 March each year.
Frequently asked questions
This guide is general information, not professional advice. Speak to your accountant or corporate service provider.