PAYROLL & CPF GUIDE · UPDATED JULY 2026
CPF for employers in Singapore: what to do before your first hire
Hiring your first employee turns payroll into a monthly compliance process. Before the first salary run, you need to know whether CPF applies, which rates to use, when contributions are due, and how to keep records clean enough for review.
FIRST-HIRE CHECKLIST
Set up the payroll process before salary is paid.
Confirm whether CPF applies
CPF generally applies to Singapore Citizen and Singapore Permanent Resident employees. Different contribution rules can apply for first- and second-year PRs.
Set up CPF EZPay access
CPF EZPay lets employers add employees, verify contribution details and submit payment for the relevant wage month.
Classify wages correctly
Payroll should distinguish ordinary wages, additional wages, allowances, reimbursements and benefits before contribution amounts are computed.
Calendar the monthly deadline
CPF contributions are due on the last day of the calendar month. Enforcement action can follow if payment is not made by the 14th of the following month.
Keep payroll records tidy
Maintain payslips, salary approvals, CPF submissions, payment confirmations and employee particulars so monthly payroll can be defended later.
2026 RATES
CPF contribution rates for employees earning more than S$750 a month.
These are the 2026 full contribution rates for Singapore Citizens and third-year onwards Singapore Permanent Residents. First- and second-year PRs can be subject to graduated rates.
55 and below
Total: 37%
Employer: 17%
Employee: 20%
Above 55 to 60
Total: 34%
Employer: 16%
Employee: 18%
Above 60 to 65
Total: 25%
Employer: 12.5%
Employee: 12.5%
Above 65 to 70
Total: 16.5%
Employer: 9%
Employee: 7.5%
Above 70
Total: 12.5%
Employer: 7.5%
Employee: 5%
MONTHLY TIMELINE
The deadline repeats every wage month.
Before the first payroll
Collect employee details, confirm citizenship or PR status, identify applicable CPF rate category and set up payroll records.
Pay day
Issue salary and payslip, deduct the employee share where applicable, and record employer CPF cost as a payroll liability.
Last day of the month
CPF contributions for that wage month are due.
14th of the following month
Pay by this date to avoid enforcement action. If the 14th falls on a weekend or public holiday, CPFB refers to the next working day.
WATCH POINTS
Mistakes that usually show up after payroll starts.
Budgeting only for gross salary
Employer CPF is an additional employment cost. For an employee aged 55 and below on full rates in 2026, employer CPF is 17% of wages within the applicable ceilings.
Forgetting PR graduated rates
New Singapore Permanent Residents may be on graduated contribution rates during their first two years of PR status, unless higher rates are applied.
Paying CPF after the 14th
Late payment interest is charged at 1.5% per month from the day after the due date, subject to a minimum amount of S$5.
Treating all payments the same
Bonuses, commissions, allowances and reimbursements may need different treatment. A payroll system should not blindly apply one rule to every line item.
Missing rate changes
CPF rates for senior workers changed in 2026 and are scheduled to change again from 1 January 2027 for employees above 55 to 65.
Build CPF into your hiring budget.
A first hire is rarely just salary. Add employer CPF, payroll software or service costs, leave administration, payslip preparation and annual reporting. If the business is still founder-run, the cleanest setup is a repeatable monthly payroll checklist rather than manual fixes at every pay run.
Common questions.
Who must employers pay CPF for?
Employers generally pay CPF contributions for employees who are Singapore Citizens or Singapore Permanent Residents. Foreign employees on work passes are generally outside CPF, but other payroll and levy obligations may apply.
When are CPF contributions due?
CPF contributions are due on the last day of the calendar month. CPFB may take enforcement action if contributions are not paid by the 14th of the following month, or the next working day if the 14th falls on a weekend or public holiday.
What are the CPF rates for employees aged 55 and below in 2026?
For monthly wages above S$750 and full contribution rates, the total CPF contribution rate is 37% in 2026: 17% employer share and 20% employee share.
Does CPF EZPay calculate contributions?
CPF states that employers using CPF EZPay to submit and pay CPF contributions do not need to use the separate contribution calculator because EZPay auto-computes employee CPF contributions.
What happens if CPF is paid late?
CPFB charges late payment interest at 1.5% per month from the day after the due date, subject to a minimum amount of S$5, and may impose enforcement action.
Do CPF rates change in 2027?
Yes. CPFB has announced that from 1 January 2027, total contribution rates for employees above 55 to 60 and above 60 to 65 will increase. Employers should update payroll settings before January 2027 payroll is processed.
Official sources
CPF rules and rates can change. These primary sources were checked on 27 July 2026.
Hiring also affects tax reporting.
Once payroll begins, keep records with IR8A, Auto-Inclusion Scheme and year-end reporting in mind, not just monthly CPF payment.
See payroll supportThis guide provides general information, not legal, HR or payroll advice. CPF treatment depends on employee status, age, wage type, PR status, wage ceilings and current CPFB rules.