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True Cost of an Employee Calculator (Singapore)

See what a salary really costs once employer CPF and the Skills Development Levy are added, at 2026 rates.

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What is the employer CPF contribution rate in Singapore?

From 1 January 2026 it is 17% for employees 55 and below, 16% for above 55 to 60, 12.5% for above 60 to 65, 9% for above 65 to 70, and 7.5% above 70, charged on Ordinary Wages up to $8,000 a month.

Where Compono fits

Getting the on-costs right tells you what a role costs. It does not tell you whether the person you are about to hire will still be there in a year. That is the expensive question, and it is a fit question. Compono Hire runs the process every applicant tracking system runs, then adds behavioural and culture-fit data so the money you commit lands on someone who stays and performs.

See how it works

How it's calculated

Employer CPF is charged on Ordinary Wages up to the monthly ceiling of $8,000, at a rate set by age band: 17% for 55 and below, 16% for above 55 to 60, 12.5% for above 60 to 65, 9% for above 65 to 70, and 7.5% above 70. Those rates apply from 1 January 2026, when the rates for workers above 55 to 65 rose again. CPF is payable only for Singapore Citizens and Permanent Residents earning more than $50 a month, so a foreign work pass holder attracts no CPF. The Skills Development Levy is 0.25% of monthly wages capped at $4,500, giving a minimum of $2 and a maximum of $11.25 a month, and unlike CPF it is payable for every employee working in Singapore including foreigners. Two things sit outside this estimate: first- and second-year Permanent Residents pay graduated CPF rates that are much lower than the full rates shown here, and foreign work pass holders attract a foreign worker levy that this tool does not model. The CPF annual salary ceiling of $102,000 also caps total contributions once Additional Wages are counted. Rates change again on 1 January 2027.

New to the term? Read the plain-English definition of CPF contributions in the HR Glossary.

Common questions

Do employers pay CPF for foreign employees?

No. CPF is payable only for Singapore Citizens and Permanent Residents earning more than $50 a month. Employers cannot contribute CPF for work pass holders even if asked. Foreign headcount instead attracts a foreign worker levy, which this calculator does not model.

What is the CPF Ordinary Wage ceiling for 2026?

$8,000 a month, the final step of the phase-in that ran from $6,000 in 2023. The CPF annual salary ceiling is $102,000.

What is the Skills Development Levy?

0.25% of monthly wages capped at $4,500, so between $2 and $11.25 a month per employee. It is payable for every employee working in Singapore, including foreigners.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Ministry of Manpower or your own adviser. Last reviewed July 2026.