Singapore PayrollEmployee Benefits

Singapore Payroll: CPF Contributions (Employee + Employer 36% Total)

27 February 2026·Updated Mar 2026·6 min read·GuideIntermediate
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Key Takeaways

Salary SGD 5,000: CPF contribution SGD 1,000 (20% employee) + SGD 800 (16% employer) = SGD 1,800 total. Employee nets SGD 4,000. Employer pays SGD 5,800. Missing CPF = Ministry of Manpower fine SGD 5K+. AskBiz auto-calculates both portions.

    CPF Mechanics#

    Mandatory for Singapore residents earning SGD 500+/month. Employee contributes 20% (capped at SGD 750/month). Employer contributes 16% (uncapped). Self-employed: 20% of net profit. Non-compliance: massive penalties.

    Why It Matters#

    CPF goes to employee retirement/healthcare savings. Also affects hiring cost: salary SGD 5K + CPF SGD 800 = SGD 5,800 true cost. Many businesses underbid because they forget CPF.

    💡 Key Insight

    Auto-calculates both employee and employer CPF.

    AskBiz CPF Automation#

    Auto-calculates both employee and employer CPF. Generates monthly CPF submission file for CPFB. Ensures accurate, timely contributions.

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    📊 By The Numbers
    20%16%
    Key Takeaways
    • Salary SGD 5,000: CPF contribution SGD 1,000 (20% employee) + SGD 800 (16% employer) = SGD 1,800 total.
    • Employee nets SGD 4,000.
    • Employer pays SGD 5,800.

    People also ask

    What if I miss CPF submission?

    Late payment: 2% interest per month. Late submission: SGD 500 fine + late charges.

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    AskBiz calculates CPF contributions, generates CPFB submissions. Never miss a deadline. Try free.

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