CPF for Founders: The Fast Guide
Hiring your first employee in Singapore as a founder? Getting CPF right is one of your first critical tasks. It’s mandatory for Singapore Citizens and PRs, and it affects both your payroll flow and your real costs as a founder.
What CPF covers
CPF is Singapore’s compulsory savings scheme for employees. As a founder, here’s what matters: if you hire a Singapore Citizen or PR, you must contribute CPF on top of wages and deduct the employee’s share from their salary.
The exact amount depends on the employee’s age, residency status, and monthly pay.
How much to budget
For your team members aged 55 and below, budget for the standard CPF rate of 37% in total:
- 17% from you (the employer)
- 20% from your employee.
The rates decrease as your team ages, and the 55–65 band will increase from 1 January 2026.
CPF is also capped. From 1 January 2026, it applies only to the first S$8,000 of ordinary wages each month. Bonuses and commissions are also subject to CPF, but only up to the annual ceiling.
Standard Rates — Singapore Citizens & PRs (3rd Year Onwards)
The table below applies to employees earning more than S$750/month, effective 1 January 2026. Rates for the 55–65 age band increased this year to strengthen retirement adequacy.
| Employee Age | Employer Pays | Employee Pays | Total CPF Rate |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% ↑ Jan 2026 |
| Above 60 to 65 | 12.5% | 12.5% | 25% ↑ Jan 2026 |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Before your first payroll
Before your first payroll as a founder,
1. Get CorpPass Access
2. Get a CPF Submission Number
3. Assign CPF EZPay access linked to that number
Don’t wait until payday to set this up.
This setup can take 1–2 working days, so as a founder, start as soon as you know you’re hiring.
When Must Employers Pay for CPF?
Payment Timeline:
- Due date: Last day of each calendar month
- Grace period: Until the 14th of the following month
- Late payment: Enforcement action begins after the grace period
- Weekend/holiday adjustment: Next working day if the 14th falls on a non-working day
Common mistakes to avoid
- Leaving CSN setup too late.
- Using outdated CPF rates after a change in the rules.
- Assuming part-timers, interns, or low-wage staff are automatically exempt.
- Treating someone as a freelancer when the working relationship looks like employment.
Simple rule for founders
If you’re a founder and your employee is a Singapore Citizen or PR working for your company in Singapore, assume CPF applies until you confirm otherwise. It’s much easier to check before payroll than to fix a mistake after.
Useful links
Disclaimer
This article is for general information only and reflects CPF rules effective from 1 January 2026. Always verify the latest details before running payroll.