CPF & SDL

Common questions about cpf & sdl in Singapore, answered by the team at E&H Corporate Services.

What is the Central Provident Fund (CPF)?CPF is Singapore's compulsory social security savings scheme covering retirement, healthcare (MediSave) and housing. Employers and employees contribute a percentage of the employee's wages each month, credited to the employee's CPF accounts.What is the CPF contribution rate?For employees aged 55 and below, the total CPF contribution is 37% of wages — 17% from the employer and 20% from the employee. Rates vary by age band and wage level (the Ordinary Wage ceiling is S$6,800 per month).Who does CPF apply to?CPF applies to Singapore citizens and permanent residents who are employed in Singapore. Foreigners (Employment Pass, S Pass, Work Permit holders) do not contribute to CPF.When is CPF required to be paid?CPF contributions are due by the end of the month following the month the wages were earned (e.g. June wages by 31 July). Contributions are computed on wages up to the CPF wage ceilings.What is CPF computed on?CPF is computed on the employee's monthly wages — basic salary plus allowances and bonuses — up to the Ordinary Wage Ceiling (S$6,800/month) and Annual Wage Ceiling (S$102,000/year, from 2023).What is the maximum cap on CPF?The maximum monthly CPF contribution is based on the Ordinary Wage Ceiling of S$6,800 per month and the Annual Wage Ceiling of S$102,000. Contributions on bonuses are capped by the Additional Wage Ceiling.What is the maximum CPF contribution in Singapore?The maximum total CPF contribution for an employee aged 55 and below is 37% of wages up to the ceiling — roughly S$2,516 per month (17% employer + 20% employee) at the S$6,800 Ordinary Wage Ceiling.Do foreign employees need to contribute to CPF?No. CPF contributions are mandatory only for Singapore citizens and PRs. Foreign employees on work passes do not contribute, and employers do not contribute for them.Can I make voluntary CPF contributions?Yes. Singaporeans and PRs can make voluntary contributions to their own CPF accounts (subject to annual caps) and self-employed persons can contribute to MediSave. Voluntary contributions may also qualify for tax relief up to limits.Can I use my CPF for the Education Scheme?Yes. The CPF Education Scheme allows members (students) to use their Ordinary Account savings to pay for approved local tertiary education tuition fees, subject to repayment with interest after graduation.How do I check my CPF Statement of Account?You can view your CPF statement online via the CPF website (cpf.gov.sg) using Singpass — including contribution history, balances by account, and interest earned.Can I make a nomination for my CPF savings?Yes. You can make a CPF nomination online via Singpass to designate who receives your CPF savings and, separately, your property (via a property nomination) in the event of your death.How much is the contribution of an employer in CPF?CPF is a short name for Central Provident Fund. Each employer in Singapore must deposit CPF contribution in each employees CPF account. Employee and employer both contribute to this deposit. The amount contributed by an employer depends on the age of employee. CPF rates change according to the age of the employee. The changes occur on employee’s 35th, 50th, 60th, and 65th birthday.What is the Skills Development Levy (SDL)?SDL is a levy paid by employers to fund workforce training programmes. It is payable on each employee's monthly wages, currently 0.25% of the first S$4,500 (i.e. up to S$11.25 per employee per month).Who does SDL apply to?SDL applies to all employers for all employees — including foreigners — working in Singapore, except those specifically exempted (e.g. domestic workers, some statutory board employees).When should SDL be paid?SDL is payable monthly, together with CPF contributions, by the end of the month following the month of wages. It is submitted via the CPF EZPay or other approved channels.How is SDL computed?SDL is 0.25% of the employee's monthly wages, capped at the first S$4,500 of wages — a maximum of S$11.25 per employee per month.How much is the SDL contribution in Singapore?The SDL contribution is 0.25% of monthly wages up to S$4,500, so the maximum is S$11.25 per employee per month.Do EP holders need to contribute to social security or skill development funds?EP holders do not contribute to CPF, but their employers must pay SDL for them (0.25% of the first S$4,500 of wages). EP holders themselves make no social security contributions.

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