Employer CPF Rules: Monthly Rates, Penalties & Payment Guide

If you hire Singapore citizens or Singapore permanent residents, you confirm must contribute CPF every month.
The law is very clear — employers must pay both the employer’s and employee’s share, although you can deduct the employee’s share from their wages.

CPF payments are a big part of compliance in Singapore, so let’s break it down in a way that’s clear, practical, and a bit more shiok to read.

Receive lifelong monthly payouts with CPF LIFE – Singapore

Requirement	What Employers Must Do
Who needs CPF	All Singaporeans & SPR employees
Payment deadline	End of every month
Late consequences	18% p.a. interest + fines/jail
Recovery of employee share	Deduct from wages within 6 months
Exemptions	Migrant workers (levy-paying)

Who Needs CPF Contributions

If someone works for you in Singapore, chances are they need CPF — as long as they are Singaporean or SPR.

This includes:

• Company directors
• Part-time or casual staff
• Operationally Ready NSmen (including their MINDEF make-up pay)
• Family members who are paid for actual work
• Employees who work for more than one employer

Even Singaporean seamen under a contract of service fall under this rule.
The key idea: if they’re local and earning wages, CPF applies.

CPF retirement account interest rate 2025

Your CPF accounts earn different interest rates, providing a foundation for your retirement savings. As of 1 October 2025, the Ordinary Account (OA) offers a 2.5% per annum interest rate. The interest rate for Special, MediSave and Retirement Accounts is maintained at 4.0% per annum from 1 October to 31 December 2025.

When You Must Pay CPF

CPF contributions are due by the end of each month.

Employers must:

• Pay on time
• Inform employees of payment timelines
• Respond if employees ask about late CPF (they have every right to check)

If payment is delayed, the least you can do is communicate openly. People confirm feel better when they know what’s happening.

If You Can’t Pay CPF on Time

Sometimes cashflow tight — understandable.
But the rules don’t change:

You must:

• Pay outstanding CPF ASAP
• Prioritise CPF above other company expenses
• Inform employees early if there will be a delay
• Explain why and state when CPF will be paid

Communication really helps avoid unnecessary drama.

Penalties for Not Paying CPF

If CPF is not paid by the 14th of the following month, be prepared for some pain.

Penalties include:

• 18% per annum late interest (minimum S$5 monthly)
• Fines of S$1,000 to S$5,000 per offence
• Up to 6 months jail
• Repeat offenders: fines up to S$10,000, and 12 months jail
• Worst case: if you deduct employee CPF but don’t pay to CPF Board → up to 7 years jail

Singapore doesn’t play around when it comes to CPF. Don’t say bojio.

Recovering the Employee’s Share

You must pay both shares upfront, but you can deduct your employee’s contribution from their salary — as long as you do it that month.

If you forget (and it wasn’t negligence), you can still recover it if:

• CPF has been paid
• You get written consent from the employee or CPF Board’s approval
• Recovery is done within 6 months

After 6 months? Cannot already.

Migrant Workers and CPF

If you’re paying the foreign worker levy, then there’s no CPF requirement for migrant workers.

However:

• SDL (Skills Development Levy) still applies
• If your worker becomes an SPR, CPF starts from the date PR is granted

Simple rule: levy = no CPF. PR = CPF.

Frequently Asked Questions

1. Do I need to pay CPF for part-timers?

Yes — if they’re Singaporean or SPR, CPF applies regardless of hours or job type.

2. Is late interest really 18% per year?

Yes. It’s meant to encourage timely payment, so better don’t wait.

3. Do migrant workers ever get CPF?

Only if they become permanent residents. Levy-paying workers do not get CPF.