---
title: "Singapore Tax and Payroll 2026 | CPF, Income Tax"
description: "Singapore payroll 2026: 17% CPF employer plus 20% employee, income tax from 0% to 24%, monthly payroll, IR8A due 1 March."
canonical: https://www.teamed.global/country-hiring-guides/singapore/tax-and-payroll
---

Singapore · Tax & payroll child

Served by Teamed vetted partner-entity network in Singapore

# How does *Singapore payroll tax* work in 2026?

Singapore's CPF adds 17% employer contribution on top of every salary. The employee pays another 20%. That is a combined 37% before any income tax. Both rates apply only up to the Ordinary Wage ceiling. Know the ceiling before you set the salary.

Last reviewed 12 June 2026 · Singapore guide

![Singapore central business district skyline at dusk with lit towers reflected in Marina Bay.](/images/country-guides/singapore-tax-payroll.webp)

Illustration · Singapore

Answer.cite this

Singapore employers pay CPF at 17% of the employee's ordinary wages. Employees pay 20%. Both rates apply to Singapore citizens and permanent residents aged 55 and below.

Income tax is assessed after the calendar year and filed with IRAS. The first SGD 20,000 of taxable income is tax-free. The top rate is 24% above SGD 1,000,000.

Payroll runs monthly. The IR8A form must reach employees by 1 March each year. CPF contributions are due to the CPF Board by the 14th of the following month.

![A CPF statement printout on a clean wooden desk with a pen resting beside it.](/images/country-guides/singapore-tax-payroll-polaroid-1.webp)

CPF in the stack

## What does an employer pay in Singapore CPF?

Employer CPF is 17% of ordinary wages for employees aged 55 and below. There is no upper rate above this band.

The contribution applies only up to the Ordinary Wage ceiling. Wages above that ceiling attract no additional employer CPF.

| Employee age | Employer CPF rate | Employee CPF rate | Total CPF rate |
| --- | --- | --- | --- |
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | Lower rate applies | Lower rate applies | Below 37% |
| Above 60 | Lower rate applies | Lower rate applies | Below 37% |

CPF rates for employees above 55 are set at lower tiers by the Central Provident Fund Act. The 17% employer rate and 20% employee rate shown here are for the main working-age band (55 and below). Rates for older employees differ and should be verified directly on the [CPF Board contribution rates page](https://www.cpf.gov.sg/employer/employer-obligations/how-much-cpf-contributions-to-pay).

### The Ordinary Wage ceiling

CPF contributions are capped at the Ordinary Wage (OW) ceiling. From 1 January 2026 that ceiling is SGD 8,000 per month. Wages above SGD 8,000 in a month attract no CPF on the excess. Additional Wage (AW) contributions have a separate annual ceiling. Employers must track both ceilings to avoid over-contributing.

### Skills Development Levy

In addition to CPF, employers pay the Skills Development Levy (SDL) on every employee's wages. The levy rate is 0.25% on the first SGD 4,500 of monthly wages, with a monthly minimum of SGD 2. SDL funds national workforce training programmes and is collected by the CPF Board alongside CPF contributions. It is a small but mandatory line item in the payroll run.

## What does an employee pay in Singapore CPF?

Employees aged 55 and below contribute 20% of ordinary wages to CPF.

The contribution is deducted from gross pay before the employee receives their salary. It is not income tax. It funds three CPF accounts: Ordinary, Special, and MediSave.

Employee CPF contributions go into three separate accounts:

- **Ordinary Account (OA)** for housing, approved investments, and education
- **Special Account (SA)** for retirement savings (higher interest rate)
- **MediSave Account (MA)** for healthcare and approved insurance premiums

The allocation between accounts shifts as the employee ages. For employees aged 55 and below the combined deduction is 20% of ordinary wages.

Non-residents and foreign employees on work passes (Employment Pass, S Pass) do not contribute to CPF. There is no equivalent contribution for non-residents. This is a significant difference from social-insurance systems in Europe where all employees pay regardless of nationality or residency status.

### Employee CPF and take-home pay

An employee on SGD 6,000 a month sees 20% deducted at source before take-home pay is calculated. Income tax is separate and assessed annually by IRAS, not via payroll withholding. The payslip shows CPF deduction and net salary; income tax is not withheld monthly.

## Singapore income tax bands for 2026

Singapore taxes resident income at graduated rates. The first S$ 20,000 a year is tax-free. Rates rise in steps to 24% above SGD 1,000,000.

Income tax is not withheld from payroll. Employees file their own annual return. IRAS issues the Notice of Assessment after filing.

| Taxable income (SGD) | Rate (YA 2026) |
| --- | --- |
| S$ 0 to S$ 20,000 | 0% |
| S$ 20,000 to S$ 30,000 | 2% |
| S$ 30,000 to S$ 40,000 | 3.5% |
| S$ 40,000 to S$ 80,000 | 7% |
| S$ 80,000 to S$ 120,000 | 11.5% |
| S$ 120,000 to S$ 160,000 | 15% |
| S$ 160,000 to S$ 200,000 | 18% |
| S$ 200,000 to S$ 240,000 | 19% |
| S$ 240,000 to S$ 280,000 | 19.5% |
| S$ 280,000 to S$ 320,000 | 20% |
| S$ 320,000 to S$ 500,000 | 22% |
| S$ 500,000 to S$ 1,000,000 | 23% |
| Above S$ 1,000,000 | 24% |

### Non-residents and foreign workers

Non-resident individuals are taxed at a flat rate of 15% on employment income or at the resident rates, whichever produces a higher tax. Non-residents cannot claim personal reliefs. Employers of non-residents must withhold tax at the flat rate under the no-filing service or direct assessment, depending on visa type. This is a material difference from CPF contributions, where non-residents are simply exempt.

### How income tax is filed

IRAS operates a no-filing service for most salaried employees whose income is already reported by employers via the Auto-Inclusion Scheme (AIS). Employers above a threshold must participate in AIS and submit income data by the first of March following the calendar year. Employees who need to claim additional reliefs must file a separate return. IRAS issues Notices of Assessment from May onwards.

## How does Singapore payroll filing work?

Singapore payroll is monthly. Employers must pay salaries within seven days of the end of the salary period.

Employers file income information with IRAS by 1 March each year via the Auto-Inclusion Scheme. CPF contributions are submitted monthly to the CPF Board by the 14th of the following month.

CPF Board · Employer CPF requirements

Employers must pay both employer and employee CPF contributions to the CPF Board by the **14th of the following month** (or the next working day if the 14th falls on a weekend or public holiday). Late contributions attract interest at 18% per annum from the due date. Employers with more than 10 employees must submit electronically via CPF EZPay or an approved payroll system.

Source: [CPF Board: How much CPF contributions to pay](https://www.cpf.gov.sg/employer/employer-obligations/how-much-cpf-contributions-to-pay)

What a Singapore employer must do each month:

- **Pay salary** within seven days of the salary period end (Employment Act s.21)
- **Deduct employee CPF** at 20% from ordinary wages (for citizens and permanent residents)
- **Add employer CPF** at 17% and submit total to CPF Board by the 14th
- **Deduct and remit SDL** alongside CPF contributions
- **Issue a payslip** at every pay period showing gross pay, CPF deductions, and net pay

At year end, employers participating in the Auto-Inclusion Scheme submit each employee's annual income data to IRAS by 1 March. Employees then receive the IR8A form. This replaces monthly income tax withholding: income tax is assessed annually, not deducted from each payslip.

1. Collect pay data Gather salary, overtime, allowances, and any variable pay for the period. Identify each employee's CPF status: Singapore citizen, permanent resident, or non-resident work-pass holder.
2. Calculate gross pay Total all earnings for the month. Separate ordinary wages from additional wages, as each has its own CPF ceiling.
3. Deduct employee CPF Apply the employee CPF rate to ordinary wages up to the Ordinary Wage ceiling. Non-residents are exempt. Issue a payslip showing the deduction before net salary is paid.
4. Calculate employer CPF and SDL Add employer CPF at 17% on the same capped base. Calculate Skills Development Levy at 0.25% on the first SGD 4,500 of monthly wages.
5. Submit CPF and SDL by the 14th Pay total CPF (employer plus employee) and SDL to the CPF Board by the 14th of the following month. Late payment attracts interest at 18% per annum.
6. File IR8A by 1 March Submit each employee's annual income data to IRAS by 1 March via the Auto-Inclusion Scheme. This replaces monthly income-tax withholding and completes the employer's annual filing cycle.

## CPF as retirement savings in the payroll stack

CPF is Singapore's mandatory retirement savings scheme. It is also the social security contribution. There is no separate pension contribution on top of CPF.

The 17% employer CPF and 20% employee CPF together fund retirement, healthcare, and housing.

CPF serves three distinct purposes in one contribution. Understanding this matters when building an offer:

- **Retirement income** via the Special Account and later the Retirement Account (funds CPF LIFE annuity)
- **Healthcare** via MediSave (funds hospitalisation, approved insurance premiums, and certain outpatient procedures)
- **Housing** via the Ordinary Account (can be used to service HDB loans or approved private mortgages)

Because CPF covers all three, there is no separate employer pension contribution in Singapore. The 17% employer rate is the full mandatory contribution. A company choosing to top up employee CPF voluntarily (for retention) can do so, but the law requires only the 17%.

### CPF and Medisave for healthcare costs

Part of the employee's CPF goes into MediSave each month. Employees can use MediSave to pay for approved health insurance premiums under the Integrated Shield Plan framework. This is why Singapore employers are not typically required to provide separate private health insurance as a benefit of employment. The CPF MediSave component handles the base healthcare funding layer.

### Retirement Account and CPF LIFE

At age 55 the Special Account and Ordinary Account balances are used to create a Retirement Account. At age 65 CPF LIFE begins, paying a monthly annuity for life. The size of the annuity depends on the balance in the Retirement Account. Employers who pay CPF reliably and on time contribute directly to the retirement security of their Singapore workforce.

## How does Teamed handle Singapore payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Singapore for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

CPF calculations, SDL, IR8A filing, and the full Employment Act stack run on **one platform**.

**Real HR and legal experts** handle your Singapore hires. From the offer letter through CPF submissions and year-end IR8A, you have **an actual person** on your account. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on each invoice: the 17% CPF, the SDL, and any reimbursements.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Singapore contractor who converts to Employment Pass payroll keeps their record. That same employee can **graduate** from EOR to your own Singapore entity without switching systems. EOR is the right model for a first Singapore hire, **until it isn’t**. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the CPF loading on a specific salary before the offer goes out.

Key sources: [Ministry of Manpower employment practices](https://www.mom.gov.sg/employment-practices), [CPF Board contribution rates](https://www.cpf.gov.sg/employer/employer-obligations/how-much-cpf-contributions-to-pay), and [IRAS individual income tax](https://www.iras.gov.sg/taxes/individual-income-tax).

## Frequently asked questions

What is the CPF employer contribution rate in Singapore in 2026?

Employer CPF is 17% of ordinary wages for employees aged 55 and below. The rate applies to Singapore citizens and permanent residents only. Non-residents on Employment Pass or S Pass do not attract CPF. Contributions are capped at the Ordinary Wage ceiling of SGD 8,000 per month from January 2026. Lower rates apply for employees above 55.

What CPF does a Singapore employee pay?

Singapore citizen and permanent resident employees aged 55 and below contribute 20% of ordinary wages. This is deducted at source by the employer and paid to the CPF Board by the 14th of the following month. The deduction funds the employee's Ordinary Account, Special Account, and MediSave Account. Foreign work-pass holders do not contribute to CPF.

What are the Singapore income tax rates in 2026?

Singapore resident individuals pay no tax on the first S$ 20,000 of taxable income. Rates then rise from 2% on income from SGD 20,001 to SGD 30,000, through 7% at SGD 40,001 to SGD 80,000, up to 24% above SGD 1,000,000. Income tax is assessed annually by IRAS, not withheld from monthly payroll.

When must Singapore employers file payroll information with IRAS?

Employers participating in the Auto-Inclusion Scheme must submit each employee's annual income data to IRAS and distribute the IR8A form to employees by 1 March following the calendar year. CPF contributions are a separate monthly requirement, due to the CPF Board by the 14th of the following month. There is no monthly payroll tax return equivalent to the UK's Full Payment Submission.

Is there a separate pension contribution in Singapore on top of CPF?

No. CPF is Singapore's combined retirement savings, healthcare, and housing scheme. The 17% employer CPF covers all three functions. There is no separate mandatory pension contribution above the CPF rate. Employers may top up employee CPF voluntarily, but the law requires only the 17% employer contribution.

Teamed Legal Operations

The CPF ceiling is the number most new Singapore employers miss. They see the 17% employer rate and calculate cost on the full salary. But contributions cap at the Ordinary Wage ceiling. A hire at SGD 10,000 a month costs less in CPF than the headline rate implies. You need to model the ceiling before the offer, not after it.

A note from Tom Price-Daniel

Singapore CPF loads 17% onto every payroll. The employee adds another 20%. That is 37% total before the first dollar of income tax.  
Both rates cap at the Ordinary Wage ceiling. A SGD 10,000 salary costs less than the headline rate suggests. Know the ceiling before you make the offer.  
Run the numbers first. Start with the actual cost, not the rate.

Tom Price-Daniel · Co-founder, Teamed

## Related Singapore guides

- Hiring in Singapore, overviewparent
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Ministry of Manpower, the CPF Board, and IRAS before relying on any specific framework. CPF rates change periodically; rates above 55 differ from those shown here. The Skills Development Levy rate and Ordinary Wage ceiling may change. Check the CPF Board for current figures.