Glossary/CPF (Singapore)
Labour law
CPF (Singapore)
CPF is the large statutory add-on for local hires. Additional wages (bonuses) have a separate annual ceiling: S$102,000 minus ordinary wages subject to CPF for the year. Skills Development Levy still applies to employees who do not pay CPF.
Foreign employees on EP, S Pass, or Work Permit do not contribute to CPF. Do not budget a 17% employer CPF line on an expatriate seat.
Countries
Where this shows up
FAQ
Questions we get
- What is the CPF ceiling in 2026?
- Ordinary wages attract CPF up to S$8,000 a month from 1 January 2026. Additional wages are capped at S$102,000 minus ordinary wages subject to CPF for the year.
- Is AWS required?
- No. Annual wage supplement is customary in many employers, not a statutory 13th under the Employment Act.
Related
Other terms
Contribution base
The wage slice on which social charges are calculated — often capped, and not always equal to uncapped gross pay.
Statutory employer cost
The mandatory amounts the employer pays on top of gross wages: social insurance, funds, levies, and extra-month rules — not a market salary.
MPF (Hong Kong)
Mandatory Provident Fund: Hong Kong's 5% + 5% retirement saving on relevant income, with a monthly cap, for most employees.
Social insurance
Mandatory employer and employee contributions for pension, medical, unemployment, and work-injury cover, calculated on a contribution base in the country of work.
Reviewed 11 September 2026. Statutory figures follow the country hiring guides. This is a briefing for multinational employers, not legal advice. For Singapore, start with the hiring guide.
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