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CENTRAL PROVIDENT FUND & SKILL DEVELOPMENT LEVY


SINGAPORE CENTRAL PROVIDENT FUND (CPF) AND SKILL DEVELOPMENT LEVY (SDL) The Central Provident Fund or CPF is a compulsory pension fund scheme in which the employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who are Singapore Citizens or Permanent Residents earning more than S$50 a month. The maximum CPF contribution rate for employers and employees is 14.5% and 20% respectively and can be lower depending on certain factors such as employee age and permanent resident status. Employment pass holders do not have to contribute to CPF. 1st year PR

2nd year PR

3rd year onwards PR and Singapore citizen With effect from 1 Sep 2011

With effect from 1 Sep 2012

(A) Employees age 50 years and below Employee

5.00%

15.00%

20.00%

20.00%

Employer

4.00%

9.00%

16.00%

16.00%

Total

9.00%

24.00%

36.00%

36.00%

(B) Employees age above 50 to 55 years Employee

5.00%

15.00%

18.00%

18.50%

Employer

4.00%

9.00%

12.00%

14.00%

Total

9.00%

24.00%

30.00%

32.50%

(C) Employees age above 55 to 60 years Employee

5.00%

12.50%

12.50%

13.00%

Employer

4.00%

6.00%

9.00%

10.50%

Total

9.00%

18.50%

21.50%

23.50%

(D) Employees age above 60 to 66 years Employee

5.00%

7.50%

7.50%

7.50%

Employer

3.50%

3.50%

6.50%

7.00%

Total

8.50%

11.00%

14.00%

14.50%

Employee

5.00%

5.00%

5.00%

5.00%

Employer

3.50%

3.50%

6.50%

6.50%

Total

8.50%

8.50%

11.50%

11.50%

(E) Employees age above 66

All companies required to contribute a fee to the skill development fund. SDL contribution is payable by employers for all employees up to the first $4,500 of gross monthly remuneration at the rate of 0.25% or $2, whichever is higher. WORKER

GROSS MONTHLY REMUNERATION

SDL PAYABLE

REMARKS

A

$150.80

$2.00

Minimum of $2 is payable

B

$609.50

$2.00

Minimum of $2 is payable

C

$2,000.00

$5.00

0.25% levy

D

$4,500.00

$11.25

0.25% levy

E

$4,502.00

$11.25

First $4,500 levied at 0.25%

F

$10,000.00

$11.25

First $4,500 levied at 0.25%

Online Resources Central Provident Fund | Private Limited Company Guide | Corporate Compliance Guide Last updated on March 6, 2012

Copyright Š 2012 Rikvin Pte Ltd


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This material has been prepared by Rikvin for the exclusive use of the party to whom Rikvin delivers this material. This material is for informational purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Where the source of information is obtained from third parties, Rikvin is not responsible for, and does not accept any liability over the content.

Last updated on March 6, 2012

Copyright Š 2012 Rikvin Pte Ltd

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