Free Tool 2026 Rates OW Ceiling S$8,000

Singapore CPF Calculator 2026

Q: How much CPF does an employer pay in Singapore?

For employees below 55, employers contribute 17% of wages (up to the OW ceiling of S$8,000). Rates are lower for employees aged 55 and above.

Q: What is SDL in Singapore payroll?

The Skills Development Levy (SDL) is 0.25% of every employee's gross wages, with a minimum of S$2 per employee per month. It funds workforce training through SkillsFuture Singapore.

Calculate employer CPF, employee CPF, SDL and net salary instantly. Accurate 2026 contribution rates with updated S$8,000 OW ceiling and all age brackets.

Employee Details

Monthly Gross Salary (S$)

Employee Status

Age Bracket

Include Skills Development Levy (SDL) — 0.25% of wages, min S$2

Rates applied (2026)

Employer: 17.0%Employee: 20.0%

Monthly Breakdown

Gross salary

S$3,000.00

Employee CPF (-)

S$600.00

Net salary (take-home)

S$2,400.00

Employer costs

Employer CPF (+)S$510.00

SDL (+)S$7.50

Total cost to employerS$3,517.50

Annual Totals

Annual grossS$36,000.00

Annual net (employee)S$28,800.00

Total employer cost/yrS$42,210.00

Employer CPF/yrS$6,120.00

Employee CPF/yrS$7,200.00

SDL/yrS$90.00

Disclaimer: This calculator uses 2026 CPF contribution rates (OW ceiling S$8,000). Results are indicative only. Additional Wage (AW), variable pay, and CPF for foreign workers are not included. Always verify with the CPF Board for payroll compliance. We handle payroll for you — see our payroll service.

2026 CPF Rates — Citizens & PRs (3rd yr+)

Age	Employer	Employee	Total
Below 55	17%	20%	37%
55 to 60	16%	16%	32%
60 to 65	12%	10.5%	22.5%
65 to 70	9.5%	7.5%	17%
Above 70	7.5%	5%	12.5%

2026 Key Numbers

OW Ceiling (monthly) Raised in 2026 Budget

S$8,000

AW Ceiling (annual) Minus total OW for year

S$102,000 - OW

SDL rate All employees including foreigners

0.25% / min S$2

PR Year 1 Graduated rates

Employer 4% / Emp 5%

PR Year 2 Graduated rates

Employer 9% / Emp 15%

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How Singapore CPF works

Ordinary Wage (OW)

Regular monthly salary. CPF is calculated on OW up to the monthly ceiling of S$8,000. Any OW above S$8,000 is not subject to CPF contributions.

Additional Wage (AW)

Bonuses, variable pay and other non-monthly wages. Subject to CPF up to the AW ceiling: S$102,000 minus total OW subject to CPF for the year.

Skills Development Levy

SDL is 0.25% of every employee's gross wages, minimum S$2/month. It applies to all employees including foreigners and funds SkillsFuture training programmes.

2026 Budget changes

The OW ceiling rose from S$6,800 to S$8,000/month from 1 January 2026. CPF rates for workers aged 55-60 also increased to 32% total. Employers who have not updated their payroll may be underpaying.

Frequently Asked Questions

What is the CPF OW ceiling in 2026?

The CPF Ordinary Wage (OW) ceiling is S$8,000 per month from January 2026, raised from S$6,800 under the 2026 Budget to improve retirement savings for middle-income workers.

How much CPF does an employer pay in Singapore?

For employees below 55, employers contribute 17% of wages up to the OW ceiling of S$8,000. Rates decrease for employees aged 55 and above.

What is the Skills Development Levy (SDL)?

SDL is 0.25% of every employee's gross wages, with a minimum of S$2 per employee per month. It funds workforce training through SkillsFuture Singapore and applies to all employees including foreigners.

Do foreign employees get CPF?

No. CPF applies to Singapore citizens and permanent residents only. Foreign employees on Employment Pass, S Pass or Work Permit are not subject to CPF. Work Permit and S Pass holders attract the Foreign Worker Levy (FWL).

What is the CPF Additional Wage ceiling?

The AW ceiling is S$102,000 minus the total OW subject to CPF for the year. It caps CPF contributions on bonuses and variable pay to prevent employees from front-loading all compensation as OW.

Why do PR employees have different CPF rates?

New PRs start on graduated contribution rates in their first two years to ease the transition. Year 1: employer 4%, employee 5%. Year 2: employer 9%, employee 15%. From year 3 onwards they contribute at the same rates as citizens.

Want payroll handled accurately every month?

We run payroll with CPF, SDL and IR8A for Singapore SMEs. Priced per employee, automatically updated for 2026 rate changes.

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