Singapore Employee Cost Calculator
See the true cost of employing someone in Singapore — gross salary plus an estimated 17.3% in employer social contributions.
Cost of an employee in Singapore
Employer contribution breakdown
| Contribution | Rate | Annual amount |
|---|---|---|
| CPF (employer, age ≤55, citizens/PRs) | 17.00% | — |
| Skills Development Levy (SDL) | 0.25% | — |
| Total employer contributions | 17.3% | — |
Employer costs in Singapore
In Singapore, the main employer cost is CPF at 17% of wages for citizens and permanent residents aged 55 and below, plus a small Skills Development Levy.
- CPF employer contribution is 17% for employees aged 55 and below, on Ordinary Wages up to the S$8,000 monthly ceiling.
- The rate steps down with age above 55, and the Skills Development Levy adds 0.25% (capped).
- CPF applies only to citizens and permanent residents. For foreign-pass holders there is no CPF; employers pay a Foreign Worker Levy instead.
This shows the citizen/PR rate for under-55s. Older workers attract lower CPF rates, the wage ceiling caps contributions, and foreign employees follow the levy system. Use it for budgeting, not payroll.
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Frequently asked questions
On top of gross salary, an employer pays statutory social-security contributions — around 17.3% in Singapore. The total employer cost is the gross salary plus those employer contributions. It does not include optional benefits, equipment, or recruitment costs.
Employers must pay mandatory social-security and payroll charges on top of the gross salary the employee sees. These fund pensions, healthcare, unemployment, and similar schemes, and they are a real, recurring cost of employment.
In most countries several contributions are calculated only up to a maximum income base, so the effective employer rate is lower for high salaries. Treat this calculator as a budgeting estimate rather than exact payroll.
Many companies use an Employer of Record (EOR) to hire compliantly in Singapore without opening a local subsidiary. The EOR is the legal employer and handles payroll, contributions, and compliance for a monthly fee.