How the estimate works
The calculator adds three things to the salary you enter: the employer's share of CPF, the Skills Development Levy (SDL), and a Foreign Worker Levy if you enter one. It works out a normal month first, then a full year of 12 salary months plus the bonus and Annual Wage Supplement (AWS) you enter, assuming the bonus is paid in a single month.
CPF is calculated with the method in CPF Board's rate tables: the total contribution is rounded to the nearest dollar, the employee's share is rounded down, and the employer's share is the difference. For wages between $500 and $750 a month the reduced formulas in the tables are used, and for $50 or less no CPF is payable.
CPF rates used (from 1 January 2026)
For Singapore Citizens and Permanent Residents from their third year, on monthly wages above $750:
| Age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Permanent Residents in their first two years contribute at graduated rates. Under the default graduated (G/G), the employer pays 4% in the first year and 9% in the second year for employees aged 55 and below, with lower rates for older employees. If the employer and employee apply jointly, the employer can pay the full employer rate with a graduated employee rate (F/G), or both can pay full rates, in which case choose the Singapore Citizen option. CPF Board has announced higher rates for employees above 55 to 65 for wages earned from 1 January 2027; this calculator uses the 2026 rates.
The wage ceilings
Ordinary Wages, such as monthly salary, attract CPF only up to the Ordinary Wage ceiling of $8,000 a month in 2026. A $12,000 salary therefore attracts the same employer CPF as an $8,000 salary: $1,360 a month for an employee aged 55 and below.
Bonuses and the AWS are Additional Wages. CPF is payable on them up to the Additional Wage ceiling: $102,000 minus the total Ordinary Wages subject to CPF for the year. An employee on $8,000 or more every month has an AW ceiling of $6,000 in 2026, so most of a large bonus attracts no CPF. The calculator applies this ceiling automatically.
Skills Development Levy
SDL is 0.25% of each employee's monthly total wages, with a minimum of $2 for employees earning less than $800 and a maximum of $11.25 for employees earning more than $4,500. It applies to all employees working in Singapore, including foreign employees. For local employees it is paid with CPF contributions; for foreign employees it is paid to the Skills and Workforce Development Agency. The company total is rounded down to the nearest dollar each month.
Work pass holders and the Foreign Worker Levy
CPF does not apply to Employment Pass, S Pass or Work Permit holders. Employers of S Pass and Work Permit holders pay a monthly Foreign Worker Levy instead. The amount depends on the pass, the sector and your company's quota tier, so the calculator asks you to enter it rather than guess. Find your rate on MOM's levy pages linked in the calculator.
What changes the cost
- Age. Employer CPF falls from 17% to 7.5% as employees get older.
- Salary above $8,000. Pay above the ceiling attracts no employer CPF, so CPF becomes a smaller share of total cost.
- Bonus size. Bonuses add CPF only until the AW ceiling is used up.
- PR status. New Permanent Residents cost less in CPF for their first two years unless a full-rate option is chosen.
- Costs not included. Insurance, benefits, allowances paid as non-wage items, recruitment, equipment and payroll administration are not part of this estimate.
Sources
- CPF Board, CPF contribution rate tables from 1 January 2026 (Tables 1 to 5).
- CPF Board, How much CPF contributions to pay.
- CPF Board, What is the Ordinary Wage ceiling?
- CPF Board, Examples for computation of the Additional Wage ceiling.
- CPF Board, How do I calculate and pay the Skills Development Levy?
- Ministry of Manpower, Foreign worker quota and levy and Quota and levy for S Pass.
Getting payroll right
Getting CPF, SDL and levies right every month is routine work, but errors attract late payment interest and penalties. If you would rather not run payroll in-house, compare payroll outsourcing providers or read our guide to the best payroll outsourcing services in Singapore. For contracts, policies and hiring support beyond payroll, see HR consultancies.
Frequently asked questions
How much CPF does an employer pay in Singapore in 2026?
For a Singapore Citizen or a Permanent Resident in their third year or later, the employer pays 17% of monthly wages for employees aged 55 and below, 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70, for wages above $750 a month. Ordinary Wages count only up to the $8,000 monthly ceiling.
Do I pay CPF for foreign employees on a work pass?
No. CPF contributions are for Singapore Citizens and Permanent Residents. Employers of Work Permit and S Pass holders pay a monthly Foreign Worker Levy set by MOM instead, and the Skills Development Levy still applies to all employees, including foreigners.
Is CPF payable on bonuses and the 13th month (AWS)?
Yes. Bonuses and the Annual Wage Supplement are Additional Wages. CPF is payable on them up to the Additional Wage ceiling, which is $102,000 minus the Ordinary Wages subject to CPF for the year. If an employee earns $8,000 or more every month in 2026, the ceiling is $6,000.
What is the Skills Development Levy?
A levy of 0.25% of each employee's monthly total wages, with a minimum of $2 for employees earning under $800 and a maximum of $11.25 for employees earning over $4,500. The employer pays it; it is not deducted from the employee's pay.
Why does the result differ slightly from my payroll software?
CPF Board rounds the total contribution to the nearest dollar and the employee share down to the nearest dollar, and SDL is rounded down on the company total each month. This calculator follows those rules for one employee, but timing of bonuses, mid-year pay changes and approved PR rate options can move the figures by a few dollars.