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Complete Guide to Mandatory Payroll Deductions for Singapore Employers
Complete Guide to Mandatory Payroll Deductions for Singapore Employers Singapore employers need to handle more than salary payment every month....
Complete Guide to Mandatory Payroll Deductions for Singapore Employers
Singapore employers need to handle more than salary payment every month. Depending on the employee profile, payroll may include CPF, self-help group deductions, Skills Development Levy, and other statutory items. This pillar guide gives business owners a practical map of the mandatory payroll deductions and levies they should check before monthly submission.
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 SC/PR employees | Employee deduction | Fixed amount by monthly total wages |
SDL | All employees working in Singapore | Employer | 0.25% of monthly total wages, min $2 and max $11.25 per employee |
CPF contribution
CPF is usually the largest statutory payroll item for Singapore employers. It applies to Singapore Citizens and Singapore Permanent Residents, with rates based on age, SPR year, wage bands, Ordinary Wages, Additional Wages and CPF ceilings. Read the detailed employer workflow here: How to Calculate CPF Contribution (Employer Guide).
Self-help group contributions
Self-help group contributions are normally deducted from employee wages and paid with CPF contributions. The applicable fund depends on the employee’s race or religion. CPF Board states that MBMF is based on religion, while the other SHGs are based on race indicated on the NRIC.
SINDA
SINDA applies to employees of Indian descent within the official scope. The contribution is a fixed monthly amount based on monthly total wages. See the full rate table here: How to Calculate SINDA Contribution.
MBMF / Mendaki
MBMF applies to Muslim employees within the official scope, including foreign employees. See the detailed guide here: How to Calculate MBMF / Mendaki Contribution.
ECF
ECF applies to Eurasian Singapore Citizen and Permanent Resident employees. See the detailed guide here: How to Calculate ECF Contribution.
Skills Development Levy
SDL is an employer levy for all employees working in Singapore, including foreign employees. It is not deducted from salary. Calculate it separately for each employee, add the results, then round the total down. Read the full guide here: How to Calculate SDL.
Monthly payroll workflow for small business owners
Before payroll run
- Check employee citizenship, SPR year, age and wage items.
- Confirm race or religion fields needed for SHG deductions.
- Identify bonuses, commissions or other Additional Wages.
- Confirm new joiners, exits and unpaid leave changes.
During payroll run
- Compute CPF using the correct rate table and wage ceiling.
- Compute SHG deductions using monthly total wage bands.
- Compute SDL for every employee, including foreign employees.
- Review payslips and CPF submission totals before payment.
After submission
- Keep payroll reports, CPF records and deduction support.
- Correct overpayments or wrong SHG payments through the relevant official process.
- Review rate changes every year, especially CPF senior worker updates.
Sources and latest checks
This guide was last reviewed in June 2026 against official CPF Board guidance. Always verify unusual employee cases against the official pages before payroll submission: CPF Board employer CPF guide, CPF Board self-help group guide, CPF Board Skills Development Levy guide.
What payroll deductions must Singapore employers check every month?
Employers should check CPF, applicable self-help group contributions such as SINDA, MBMF or ECF, and SDL. Other deductions depend on the employee and employment arrangement.
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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