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Complete Guide to Mandatory Payroll Deductions for Singapore Employers
Singapore payroll is more than paying salary on time. Employers may need to handle CPF, self-help group contributions, Skills Development...
Singapore payroll is more than paying salary on time. Employers may need to handle CPF, self-help group contributions, Skills Development Levy, foreign worker costs, and tax reporting checks depending on the employee profile.
This guide gives employers a practical monthly checklist. It is not a substitute for CPF Board, MOM, IRAS, or SkillsFuture Singapore guidance.
Employer Payroll Deduction Checklist
Payroll item | Who it usually affects | Paid by | Core calculation |
|---|---|---|---|
CPF contribution | Singapore Citizens and SPRs | Employer and employee | Rate depends on age, SPR year, wages, and ceilings |
SINDA | Employees of Indian descent within CPF Board scope | Employee deduction | Fixed amount by monthly total wages |
MBMF / Mendaki | Muslim employees within CPF Board scope | Employee deduction | Fixed amount by monthly total wages |
ECF | Eurasian employees within CPF Board scope | Employee deduction | Fixed amount by monthly total wages |
SDL | Employees working in Singapore | Employer | 0.25% of wages, subject to minimum and maximum |
Foreign Worker Levy | Work Permit and S Pass holders | Employer | Rate depends on sector, pass, skill tier, and quota tier |
Monthly Payroll Workflow
- Confirm employee profile changes.
- Check new hires, leavers, and work pass status.
- Calculate gross wages and wage components.
- Apply CPF rates, ceilings, and SPR rules.
- Check self-help group deductions.
- Calculate SDL.
- Review foreign worker levy separately where relevant.
- Submit, pay, and keep records.
CPF Contribution
CPF is usually the largest payroll item for Singapore employers. It applies to eligible Singapore Citizens and Singapore Permanent Residents.
Employers should check:
- Age band.
- Citizenship or SPR year.
- Ordinary Wage and Additional Wage treatment.
- CPF wage ceilings.
- Employee wage level for lower-wage contribution rules.
Self-Help Group Contributions
Self-help group contributions are usually employee deductions paid by the employer through the CPF workflow.
Common checks include:
- SINDA for employees within the SINDA contribution scope.
- MBMF for Muslim employees within scope.
- ECF for eligible Eurasian employees.
- Approved employee instructions to vary or stop contribution.
SDL And Foreign Worker Costs
SDL is an employer levy. Foreign Worker Levy is also an employer manpower cost. Neither should be treated as an ordinary employee deduction from salary.
These items matter because they affect true employment cost, not just payroll compliance.
Common Payroll Mistakes
- Using outdated CPF rate tables.
- Forgetting the $8,000 Ordinary Wage ceiling for 2026 payroll.
- Missing self-help group deductions for eligible employees.
- Deducting SDL from employee salary.
- Budgeting foreign worker salary without levy cost.
- Not keeping records for adjustments and refunds.
Source To Verify
Use CPF Board for CPF, self-help group contributions and SDL collection workflow; MOM for foreign worker levy; IRAS for employer tax filing and reporting obligations.
Frequently Asked Questions
What payroll deductions must Singapore employers check every month?
Employers should check CPF, applicable self-help group contributions, SDL, and any worker-specific items such as foreign worker levy or approved deductions.
Are self-help group contributions paid by employer or employee?
They are generally deducted from employee wages and paid by the employer together with CPF contributions.
Is SDL deducted from salary?
No. SDL is an employer levy and should not be deducted from employee wages.
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