Employer CPF & Hiring Cost Calculator

Estimates the full monthly cost of employing a local worker: salary, employer CPF and the Skills Development Levy.

Result

Employer CPF
S$850.00
Skills Development Levy
S$11.25
Total monthly cost to employer
S$5,861.25
Annual cost (12 months)
S$70,335.00

How to use the employer cpf & hiring cost calculator

  1. Enter the monthly salary (S$).
  2. Enter the age (years).
  3. The results update as you type, or press Calculate.
  4. Read the employer cpf first, then the supporting figures below it.

Formula

Cost = salary + employer CPF + SDL. SDL is 0.25% of monthly remuneration with a S$2 minimum and a S$11.25 maximum.

Worked example

For example, with these inputs:

the calculator returns:

Background

The Employment Act sets out how hourly and daily rates are calculated for overtime, public holiday work and salary deductions. These formulas use the monthly basic rate of pay rather than gross salary, which is why the numbers can look lower than a simple division of your salary by hours worked.

Total compensation in Singapore is more than the number on your offer letter. Employer CPF, variable bonuses, the Annual Wage Supplement (often called the 13th month) and benefits all add value, and comparing offers on take-home pay alone can hide meaningful differences.

Frequently asked questions

Is SDL payable for foreign employees?

Yes. SDL applies to all employees working in Singapore, including foreigners, while CPF applies only to citizens and PRs.

How does the employer cpf & hiring cost calculator work?

It applies this formula: Cost = salary + employer CPF + SDL. SDL is 0.25% of monthly remuneration with a S$2 minimum and a S$11.25 maximum.

Are these figures exact?

They follow the published CPF and MOM formulas, but your employer's payroll may round slightly differently or include allowances in a different way. Your payslip is the final reference.

Guides for this calculator

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