When you hire employees in Singapore, payroll taxes aren’t optional. You’re responsible for calculating, paying, and filing the right contributions on your employees’ behalf and your own.
Here’s a breakdown of what you must calculate, contribute, and report as an employer in Singapore.
What are payroll taxes?
Payroll taxes are payments you have to make as an employer when you pay your staff. They support government programs like retirement funds, training, and healthcare. These include CPF contributions, a training levy (Skills Development Levy), and an extra charge (Foreign Worker Levy) if you hire foreigners.
Employers in Singapore don’t withhold income tax. Employees have to file and pay it to IRAS themselves. However, you must still report employee earnings to IRAS through an annual IR8A submission.
As an employer in Singapore, you’re responsible for:
- Withholding the correct contributions from employee wages
- Paying your own share of contributions
- Submitting payments and reports on time
Employee payroll deductions
If you’re hiring in Singapore, you’ll need to put aside part of your employee’s salary for Central Provident Fund (CPF).
What’s CPF?
It’s a government savings fund for Singaporeans and PRs. You take your employee’s share straight from their monthly wages.
- Rate: Up to 20% of monthly wages
- Wage cap: SGD 7,400
- Max deduction: SGD 1,480/month
- Lower rates apply if your employee is aged 55 or older, or earns under SGD 750
When to pay:
CPF payments are due by the end of each month. You must pay by the 14th of the following month to avoid late payment fines.
Employer payroll contributions
You’re also required to make your own contributions, calculated separately from the employee’s share.
1. CPF (Employer Share)
- Rate: Up to 17% of monthly wages
- Wage cap: SGD 7,400
- Max contribution: SGD 1,258/month
You submit both employer and employee CPF contributions together.
CPF contribution rates by age
Employee Age | Employer Share | Employee Share | Total CPF |
55 & below | 17% | 20% | 37% |
56–60 | 15.5% | 17% | 32.5% |
61–65 | 12% | 11.5% | 23.5% |
66–70 | 9% | 7.5% | 16.5% |
Above 70 | 7.5% | 5% | 12.5% |
2. Skill Development Levy (SDL)
SDL funds government-supported training for employees.
- Rate: 0.25% of total monthly wages
- Minimum: SGD 2 per month per employee
- Maximum: SGD 11.25 per month per employee
- Applies to all employees, including foreign workers.
3. Foreign Worker Levy (FWL)
If you employ Work Permit or S Pass holders, you must also pay the FWL.
- Rate: Varies by industry, employee qualification, and quota
- Collected by: Ministry of Manpower
- Usually paid through the same CPF submission portal
Wondering what’s left to submit for payroll?
How to file and pay payroll taxes in Singapore
- Calculate all contributions (CPF, SDL, FWL)
- Submit CPF details through CPF EZPay (web or mobile), or directly from approved payroll software
- Pay online via GIRO, PayNow QR, or eNETS
- File IR8A annually by March 1 to report employee earnings to IRAS
Summary of payroll tax obligations
Type | Who Pays | Rate or Cap | Due Date |
CPF (Employee share) | Employee | 20% (max SGD 1,360) | 14th monthly |
CPF (Employer share) | Employer | 17% (max SGD 1,156) | 14th monthly |
Skill Dev Levy (SDL) | Employer | 0.25% (SGD 2 to 11.25) | 14th monthly |
Foreign Worker Levy (FWL) | Employer | Varies by sector/ratio | 14th monthly |
IR8A Filing | Employer | Annual earnings report to IRAS | 1 Mar annually (electronic via AIS if required) |
How Sleek can help with payroll taxes in Singapore
Every employer in Singapore is expected to get payroll taxes right. But keeping up with monthly filings, changing contribution rates, and government submission systems demands more than just good intentions. It requires precision and local expertise.
That’s exactly what Sleek delivers.
We make payroll taxes clear, compliant, and consistent. Whether you’re setting it up for the first time or moving from another provider, Sleek gives you a reliable system backed by real experts.
With Sleek, you get:
- Accurate CPF, SDL, SHG, and FWL contributions
- Monthly payslips and payroll reports
- Annual AIS and IR8A submissions
- GIRO payment file generation
- Leave tracking with Talenox integration
- Automated reminders before key deadlines
We also handle CPF registration, AIS setup, IR21 tax clearance for foreign employees, and help you maintain the records you need for audits and year-end filing.
Compliance isn’t an afterthought with Sleek. It’s built into every payslip, filing, and deadline we manage.
Make your next payroll your easiest one yet.
Compliant payroll starts here
FAQs on payroll taxes in Singapore
What’s the difference between payroll tax and corporate tax?
Employers pay payroll taxes every month. These are tied to what they pay their staff and include CPF, SDL, and FWL if they hire foreign workers.
Corporate tax works differently. It’s based on a company’s profits and only needs to be filed with IRAS once a year.
Do employers in Singapore deduct income tax from employee salaries?
Unlike in some countries, employers in Singapore don’t deduct income tax from pay. Employees must handle it themselves through the IRAS. However, employers must still report employee earnings each year using the IR8A form.
What CPF contributions do employers and employees make in 2026?
See the CPF section above for full rates and caps. Put simply, employees chip in up to 20% of their pay (up to SGD 1,480), and employers top it up with up to 17% (up to SGD 1,258). Lower rates apply to older workers.
When are CPF and other payroll taxes due in Singapore?
CPF, SDL, and FWL contributions are due by the 14th of the following month.
If the 14th falls on a weekend or public holiday, payment should be made on the next working day.
Do I have to make payroll contributions for independent contractors?
No, CPF and other payroll contributions don’t apply to independent contractors in Singapore. But mislabeling a real employee as a contractor can lead to penalties and backdated CPF payments. If you’re unsure, ask MOM or a payroll pro for help.
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