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Verified: main employer charges cited
Mandatory employer contributions in Singapore
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| CPF (citizens and PRs aged 55 and under) | 17.0% | 8,000 SGD/month |
Who these rates cover: citizens and PRs.
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 129,000 SGD | 16,320 SGD | 12.7% | 145,320 SGD | $111,148 |
| 258,000 SGD | 16,320 SGD | 6.3% | 274,320 SGD | $209,813 |
| 517,000 SGD | 16,320 SGD | 3.2% | 533,320 SGD | $407,909 |
The examples use 1×, 2× and 4× Singapore’s 2025 GDP per person in local currency (129,194 SGD, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 258,000 SGD a year, the employer adds about 16,320 SGD (6.3%) in mandatory contributions, for a total of 274,320 SGD, about $209,813 at the 2025 average exchange rate. Because some contributions stop at a ceiling, the effective rate falls from 12.7% at the lowest example salary to 3.2% at the highest, so senior hires cost proportionally less in on-costs.
What is not included
- Foreign employees and their employers do not contribute to CPF, so the employer on-cost for a foreign hire is close to zero (Skills Development Levy not included). CPF ordinary-wage ceiling SGD 8,000 a month.
How to budget a hire in Singapore
- Start from the gross salary you plan to offer in SGD.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Singapore (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Singapore with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Singapore, other taxes, last reviewed 02 July 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Singapore?
On a salary of 258,000 SGD, mandatory employer contributions add about 6.3%, for a total of roughly 274,320 SGD a year before benefits (PwC, reviewed 02 July 2026).
What are employer social security contributions in Singapore?
CPF (citizens and PRs aged 55 and under) 17.0%.
Is the Singapore data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.