horizons logo
Start hiring

Social security
in Singapore

SALARY PAYMENT IN Singapore Dollar (SGD)

CONTRACT LANGUAGES English

PAYROLL TAX 22%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Social security in Singapore – Overview

Singapore has a straightforward social security system based almost entirely on contributions to the Central Provident Fund (CPD).

What does the social security system in Singapore cover?

The social security system in Singapore is operated through the Central Provident Fund (CPF). This mandatory social security savings scheme is funded by joint contributions made by employers and employees and is designed to cover health care, retirement and home ownership needs of Singaporean citizens and permanent residents.

What are the mandatory contributions for employees to social security in Singapore?

Employees are required to contribute 20% of monthly earnings subject to a maximum monthly salary ceiling of SGD 6,000. However, voluntary contributions above the mandatory amounts can be paid.

What are the mandatory contributions for employers to social security in Singapore?

Employers are required to contribute 17% of employees’ monthly salaries subject to a maximum monthly salary ceiling of SGD 6,000. However, voluntary contributions above the mandatory amounts can be paid.

How do mandatory contributions compare to the surrounding countries?

Mandatory contributions in Singapore are generally simpler than in neighboring countries, such as China (with ‘the 5 Insurances’) and Malaysia (with both the Employees Provident Fund and employment injury insurance).

Hiring in Singapore, Made Easy

Your business can easily hire employees in Singapore without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Employers are required to contribute 17% of employees’ monthly salaries subject to a maximum monthly salary ceiling of SGD 6,000.

Social security contributions are designed to cover healthcare, retirement and home ownership needs of Singaporean citizens and permanent residents.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Get started with Horizons