Introduction: Why CPF Compliance Matters in 2025
Employers in Singapore can’t ignore CPF. It’s not just another payroll item — it’s a legal duty. The CPF rate changes in 2025 and age-based tweaks make following the rules more important than ever.
This Guide Will Cover:
- The newest CPF contribution rates (2025) for each age group.
- Employer duties under MOM rules.
- Typical errors that result in fines.
- How Info-Tech’s Payroll Software streamlines CPF compliance.
Singapore’s CPF contribution rate changes based on employee age, with 2025 rates from 12.5% (over 70) to 37% (under 55).
What Is the CPF Contribution Rate?
The Central Provident Fund (CPF) stands as Singapore’s required social security savings plan. Employers and employees both contribute, funding needs for retirement, housing, and healthcare.
CPF rates change based on age making sure younger workers save more while older employees keep a decent amount of their paycheck.
CPF Contribution Rates for 2025 (By Age Group)
A CPF contributions cover both Ordinary Wages (OW) and Additional Wages (AW). Employers pay part of it, and employees pay the rest.
| Age Group | Employer Rate | Employee Rate | Total CPF Contribution |
| Below 55 | 17% | 20% | 37% |
| 55 – 60 | 14.5% | 15% | 29.5% |
| 60 – 70 | 11% | 9% | 20% |
| Above 70 | 7.5% | 5% | 12.5% |
In 2025, CPF rates reach their peak for employees under 55 (37%) and their lowest point for those above 70 (12.5%).
Employer CPF Guide: Key Responsibilities
1. Precise CPF Calculations
- Employers must calculate CPF on both Ordinary Wages (monthly salary) and Additional Wages (bonuses, commissions, etc.).
- OW limit: S$6,000/month.
- AW limit: [S$102,000 – OW subject to CPF in the year].
2. On-Time Submissions
- Employers need to submit contributions by the 14th of each month.
- If submissions are late, they result in interest charges and penalties.
3. Recordkeeping
- Companies have to maintain payroll records and CPF payment history for audits and disputes.
4. Employee Notifications
- Companies should let employees know about CPF contributions when rates change with age or when bonuses get paid.
Common CPF Mistakes Employers Make
Many small and medium-sized businesses make CPF errors that lead to penalties. The most frequent mistakes include:
- Using Old CPF Rates → This happens a lot after yearly policy changes.
- Getting AW Caps Wrong → This leads to wrong CPF on bonuses or commissions.
- Not Meeting the 14th Submission Deadline → This results in fines.
- Mistakes in Manual Payroll → These happen across different age groups and types of wages.
Tip: Use software to do CPF math to avoid mistakes.
How Info-Tech’s Payroll Software Makes CPF Compliance Easy
Doing CPF by hand is risky and takes a lot of time. Info-Tech’s Payroll Software does CPF math, sends reminders, and submits forms on its own making sure you follow the rules every time.
Main Features:
- Automatic calculations based on age & wage type – uses the right CPF rates for every worker.
- Creates CPF submission files – ready to upload to CPF’s e-submission portal.
- Timely alerts – helps you meet the 14th deadline every time.
- Connects with HRMS – employee data, pay info, and CPF changes update .
Check out Info-Tech HRMS to manage your entire workforce
The Importance of CPF Automation
Following the rules does more than avoid penalties — it builds employee trust and keeps payroll running without hiccups.
- Automated systems cut down on mistakes.
- Free up time spent on repeated calculations.
- Give you records ready for audits whenever needed.
Example: Miscalculating CPF for one employee over a year can result in thousands in fines. Using automated systems stops these expensive errors from happening.
Wrapping Up: Making CPF Compliance Easy
Employers need to keep a close eye on things as CPF contribution rates change in 2025. You can’t skip out on CPF compliance – you have to get the math right and pay on time.
Info-Tech’s Payroll Software takes the headache out of CPF compliance. It helps you:
- Follow the rules.
- Cut down on work.
- Sidestep costly slip-ups.
Want to make CPF compliance a breeze? Ask for a Demo now.
Frequently Asked Questions:
What’s the CPF contribution rate in 2025?
It goes from 12.5% (for workers over 70) to 37% (for workers under 55).
When do CPF contributions need to be paid each month?
Companies have to send in CPF contributions by the 14th of the next month.
Which wages fall under CPF?
CPF covers both Ordinary Wages (OW) such as monthly pay and Additional Wages (AW) like bonuses, with different limits.
What CPF mistakes do employers often make?
Using old rates, missing due dates, and applying bonus limits are common slip-ups.
How can employers make sure they follow CPF rules without hassle?
Using payroll software like Info-Tech’s helps. It handles CPF rate application, sends reminders, and creates submission files for you.
