How to Create Payslips for Employees in Singapore (CPF Included)

Singapore's Ministry of Manpower (MOM) requires every employer to issue itemized payslips to all employees covered under the Employment Act. Since April 2016, this is not optional — failure to comply can result in fines up to $5,000 per offense.

The good news: Singapore payslips are straightforward compared to many countries. The main complexity is getting the Central Provident Fund (CPF) contributions right. Here is how to do it properly.

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What MOM Requires on a Payslip

The Employment Act specifies the minimum information that must appear on every payslip.

Section	Required Information
Employer	Company name, UEN (Unique Entity Number)
Employee	Full name, NRIC/FIN (last 4 characters acceptable)
Pay period	Start date, end date, date of payment
Earnings	Basic salary, allowances (transport, housing, etc.), overtime pay, bonuses, commissions
Deductions	Employee CPF contribution, any other deductions (with reasons)
Overtime	Overtime hours, overtime rate, overtime pay (if applicable)
Net pay	Total amount paid

Payslips must be issued within three days of payment for monthly-paid employees, or before payment for employees paid by other frequencies.

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CPF Contribution Rates

CPF is the backbone of Singapore's social security system. Contribution rates vary by age and residency status. Below are the rates for Singapore Citizens and Permanent Residents (3rd year onward) earning above $750/month.

Age Group	Employee Rate	Employer Rate	Total
55 and below	20%	17%	37%
Above 55 to 60	15%	14.5%	29.5%
Above 60 to 65	9.5%	11%	20.5%
Above 65 to 70	7%	7.5%	14.5%
Above 70	5%	5%	10%

CPF contributions are subject to the Ordinary Wage (OW) ceiling of $6,800/month. Wages above this cap are not subject to CPF on the ordinary wage portion, though an Additional Wage ceiling may apply for annual bonuses.

CPF Allocation Across the Three Accounts

For employees aged 55 and below, CPF contributions are split into three accounts.

Account	Allocation (% of wages)	Purpose
Ordinary Account (OA)	23%	Housing, education, investment, insurance
Special Account (SA)	6%	Retirement, investment
MediSave Account (MA)	8%	Hospitalization, approved medical insurance

The allocation percentages shift with age, directing more towards MediSave and less towards the Ordinary Account as an employee gets older.

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Step 1: Enter Company and Employee Details

Start with the employer's company name and UEN. Then add the employee's full name and the last four characters of their NRIC or FIN. In CleverSlip, select the Singapore template — the CPF fields and SDL calculation are already built in.

Step 2: Define the Pay Period

Specify the pay period start and end dates, plus the payment date. Most Singapore employers pay monthly, but the template supports weekly and bi-weekly periods as well.

Step 3: Enter Earnings

Add the basic monthly salary. Then include any fixed allowances (transport, meal, phone) and variable components like overtime, commissions, or bonuses.

Overtime Calculation

Under the Employment Act, overtime is paid at 1.5 times the hourly basic rate. Overtime applies to non-workmen earning up to $2,600/month and all workmen earning up to $4,500/month.

Step 4: Calculate CPF Contributions

CleverSlip applies the correct CPF rates based on the employee's age and residency status. Both the employee and employer portions are computed automatically.

For a Singapore Citizen aged 30 earning $5,000/month:

Item	Amount
Gross salary	$5,000.00
Employee CPF (20%)	-$1,000.00
Net pay	$4,000.00
Employer CPF (17%)	$850.00 (not deducted from pay)

The employer CPF contribution is an additional cost to the business, not a deduction from the employee's salary.

Step 5: Include Skills Development Levy (SDL)

Every employer must pay SDL for all employees, including foreign workers. The rate is 0.25% of monthly wages, with a minimum of $2 and a maximum of $11.25 per employee. SDL does not appear as an employee deduction — it is an employer-only obligation — but many payslips include it for transparency.

Step 6: Apply Additional Deductions

If the employee has any voluntary deductions — union fees, donations via CDAC/MBMF/SINDA, or salary advances — list each with a clear description. MOM requires that the reason for every deduction be stated on the payslip.

Step 7: Generate and Distribute

Download the payslip as a PDF. MOM accepts both electronic and hard-copy payslips. You must retain payroll records for two years after the employee leaves the company, and for current employees, records must be kept for the current period plus the preceding year.

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Key Points to Remember

• First- and second-year PRs have reduced CPF rates. Do not apply the full rates until the third year.
• The OW ceiling caps CPF on monthly ordinary wages at $6,800. Anything above that threshold is not subject to ordinary-wage CPF.
• Foreign workers on Work Permits and S Passes do not contribute to CPF. Only Singapore Citizens and PRs are covered.

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CleverSlip's Singapore template handles CPF rate lookups by age group, SDL calculation, and OW ceiling logic automatically. Enter the employee details and salary, and the payslip is generated in full compliance with MOM requirements.