The Central Provident Fund (CPF) is a compulsory pension fund in Singapore where employers and employees contribute a percentage of monthly salary. Contribution rates vary depending on the employee's age, citizenship status, and time as a permanent resident. The Skill Development Levy (SDL) is also paid by employers for all local employees at a rate of 0.25% of the first $4,500 of monthly wages to support worker training programs.

1. CENTRAL PROVIDENT FUND
& SKILL DEVELOPMENT LEVY

2. SINGAPORE CENTRAL PROVIDENT FUND (CPF)
AND SKILL DEVELOPMENT LEVY (SDL)
The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a
percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who
are Singapore Citizens or Permanent Residents earning more than S$50 a month. The maximum CPF contribution rate for
employers and employees is 14.5% and 20% respectively and can be lower depending on certain factors such as employee
age and permanent resident status. Employment pass holders do not have to contribute to CPF.
1st year PR 2nd year PR 3rd year onwards PR and Singapore citizen
With effect from With effect from
1 Sep 2011 1 Sep 2012
(A) Employees age 50 years and below
Employee 5.00% 15.00% 20.00% 20.00%
Employer 4.00% 9.00% 16.00% 16.00%
Total 9.00% 24.00% 36.00% 36.00%
(B) Employees age above 50 to 55 years
Employee 5.00% 15.00% 18.00% 18.50%
Employer 4.00% 9.00% 12.00% 14.00%
Total 9.00% 24.00% 30.00% 32.50%
(C) Employees age above 55 to 60 years
Employee 5.00% 12.50% 12.50% 13.00%
Employer 4.00% 6.00% 9.00% 10.50%
Total 9.00% 18.50% 21.50% 23.50%
(D) Employees age above 60 to 66 years
Employee 5.00% 7.50% 7.50% 7.50%
Employer 3.50% 3.50% 6.50% 7.00%
Total 8.50% 11.00% 14.00% 14.50%
(E) Employees age above 66
Employee 5.00% 5.00% 5.00% 5.00%
Employer 3.50% 3.50% 6.50% 6.50%
Total 8.50% 8.50% 11.50% 11.50%
All companies required to contribute a fee to the skill development fund. SDL contribution is payable by employers for all
employees up to the first $4,500 of gross monthly remuneration at the rate of 0.25% or $2, whichever is higher.
WORKER GROSS MONTHLY REMUNERATION SDL PAYABLE REMARKS
A $150.80 $2.00 Minimum of $2 is payable
B $609.50 $2.00 Minimum of $2 is payable
C $2,000.00 $5.00 0.25% levy
D $4,500.00 $11.25 0.25% levy
E $4,502.00 $11.25 First $4,500 levied at 0.25%
F $10,000.00 $11.25 First $4,500 levied at 0.25%
Online Resources
Central Provident Fund | Private Limited Company Guide | Corporate Compliance Guide
Last updated on March 6, 2012 Copyright © 2012 Rikvin Pte Ltd

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Last updated on March 6, 2012 Copyright © 2012 Rikvin Pte Ltd