CPF. AIS. MOM. Singapore payroll, owned.
Singapore payroll demands a live CPF engine with rising Ordinary Wage ceilings, work-pass-differentiated compliance across Employment Pass, S Pass, and Work Permit holders, Foreign Worker Levy management, Auto-Inclusion Scheme (AIS) annual submission to IRAS, Progressive Wage Model compliance in covered sectors, and SDL levy remittance. Most providers handle two of these correctly. Mercans handles all of them — on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Personal Income Tax top
- 24% above SGD 1M/yr
- CPF Employer (age ≤55)
- 17% of ordinary wages
- CPF Employee (age ≤55)
- 20% of ordinary wages
- CPF OW Ceiling
- SGD 7,400/month
- CPF AW Ceiling
- SGD 102,000/yr minus OW
- CPF Deadline
- 14th of following month
- IR8A Filing
- 1 March annually
- NS Make-Up Pay
- Employer obligated
- Annual Leave
- 7–14 days by service
- Minimum Wage
- None (Progressive Wage for sectors)
Getting Singapore payroll “mostly right” is the most expensive mistake
CPF Ordinary Wage Ceiling Annual Increases
The CPF OW ceiling is rising in annual steps: S$6,800 (2024) → S$7,400 (2025) → S$8,000 (2026). Each January increase requires payroll systems to update the ceiling before the first payroll run of the new yea.
AIS / IR8A Annual Submission Deadline
Employers participating in the Auto-Inclusion Scheme (AIS) must submit all employees’ income information electronically to IRAS by 1 March each year. Organisations with 5 or more employees are mandatory AIS participant.
Foreign Worker Levy & Quota Management
Employers of S Pass and Work Permit holders must pay a monthly Foreign Worker Levy (FWL) to MOM, with rates determined by sector, worker qualification tier, and dependency ratio quota. Exceeding the quota makes additional S Pass or WP applications impossible.
Progressive Wage Model (PWM) Compliance
The PWM mandates sector-specific minimum wages above the general minimum for covered sectors including cleaning, security, landscape, retail, food services, waste management, and lift & escalator maintenance. Employers in these sectors must pay PWM-compliant wages or be ineligible for government contracts and work pass application.
The three types of providers who struggle with Singapore
Route through partner payroll bureaux in Singapore. CPF and AIS typically managed manually or by local accountants. Foreign Worker Levy tracking not integrated. No automatic CPF ceiling update capability.
- ×Manual CPF
- ×Partner AIS
- ×No levy tracking
Singapore payroll platforms (Talenox, Payboy, Infotech) require customer configuration for CPF ceiling changes, AIS submission, and PWM rate updates. FWL and quota management typically manual.
- ×Customer-configured
- ×Manual AIS
- ×FWL not integrated
Fully managed payroll with native CPF contributions across all age bands, AIS electronic submission to IRAS, Foreign Worker Levy computation and GIRO remittance, SDL, and PWM-compliant wage floors — all in-platform.
- ×Native CPF
- ×Managed AIS
- ×FWL + SDL automated
The only provider that closes every gap
From CPF across five age bands to AIS submission, Foreign Worker Levy, SDL, and Progressive Wage Model compliance — Mercans owns every layer of Singapore payroll on a single contract.
G2N Nova™ — Native CPF Engine
Mercans’ proprietary G2N Nova™ engine calculates CPF contributions for all five age bands, updates the Ordinary Wage ceiling each January without manual configuration, and tracks Additional Wage contributions annually. AIS electronic submission to IRAS is managed in-platform, covering employment income, bonuses, director fees, stock awards, and benefits-in-kind by the 1 March deadline.
Singapore-based payroll & compliance specialists
Mercans operates a Singapore-resident payroll team with specialists in CPF, AIS, MOM work pass compliance, Foreign Worker Levy, and Progressive Wage Model requirements. Named account managers, 24-hour SLA for urgent queries, and embedded MOM and IRAS expertise for audit support.
PDPA & MAS TRM compliance
Singapore payroll data is governed by the Personal Data Protection Act (PDPA), with obligations around collection, use, disclosure, and data breach notification. Financial sector employers are also subject to MAS Technology Risk Management (TRM) guidelines for outsourced payroll processing. Mercans holds BCR approval, ISO 27701, SOC 1 & 2, and ISO 27017/27018. Zero security breaches since inception.
Where Mercans wins on every Singapore-specific capability
Each row is a Singapore payroll capability. Each cell shows native coverage as a fill bar — full = native in-platform, half = partial / manual workaround, empty = gap.
SG Capability Coverage · 10 dimensions
OW + AW ceiling tracking · annual January update
1 March deadline · all income types
S Pass + WP · sector-tiered rates
7 covered sectors · annual rate updates
PMET salary percentile · local share scoring
Filed 1 month before cessation · salary withholding
0.25% gross wages · min S$2 · max S$11.25
Top-up obligation · MedRisk · IPPT reporting
Additional Wage ceiling · contractual vs discretionary
Data breach notification · purpose limitation
Every rate. Every cap. Every obligation.
Singapore’s 2025–26 payroll framework centres on CPF contributions with an Ordinary Wage ceiling rising to S$7,400/month in 2025 (S$8,000 in 2026), progressive income tax up to 24%, Foreign Worker Levy for S Pass and Work Permit holders, and AIS annual submission to IRAS. Mercans tracks every change — including annual CPF ceiling updates — without manual reconfiguration.
Singapore · Rate & Compliance Dashboard
Live 2025–26CPF Ordinary Wage Ceiling Rising Annually
The CPF OW ceiling increases to S$8,000/month from January 2026 (from S$7,400 in 2025), continuing a planned multi-year upward progression. The Additional Wage ceiling is S$102,000 less total OW subject to CPF paid in the calendar year. Systems that hardcode the ceiling require manual intervention each January — G2N Nova™ updates automatically.
→ S$7,400 (2025) → S$8,000 (Jan 2026) — auto-updated in G2N Nova™COMPASS EP Assessment Framework
Since September 2023, COMPASS applies a points-based evaluation to all new EP applications. Employers must score at least 40 points across salary benchmarking (relative to local PMET market), local PMET workforce share, skills diversity, and support for local employment. Renewal applications are assessed if any criterion falls below the threshold.
→ COMPASS 40 points min · salary benchmark · local share criteriaAuto-Inclusion Scheme (AIS) Annual Submission
AIS participation is mandatory for employers with 5 or more employees. All employment income — salary, bonus, AWS, director fees, benefits-in-kind, stock options, and car benefits — must be submitted electronically to IRAS by 1 March. Errors create discrepancies in employee tax returns and trigger IRAS reviews.
→ 1 March deadline · mandatory for 5+ employees · IR8A covers all income typesAnnual Bonus & AWS CPF Treatment
The Annual Wage Supplement (AWS, or “13th month bonus”) and contractual bonuses are subject to CPF as Additional Wages. The AW ceiling is S$102,000 less OW on which CPF was paid in the year. Non-contractual bonuses are also CPF-liable. Common error: classifying contractual AWS as non-CPF or missing the AW ceiling calculation.
→ AWS = Additional Wages · CPF applies · AW ceiling S$102,000 less OW CPF paidSee your real Singapore payroll cost in real time
CPF employer and employee contributions across age bands, SDL, progressive income tax, and total employer cost — calculated live as you move the slider.
Singapore Payroll Cost Calculator
LIVEWhat only Singapore experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides — but appear in every audit and labour inspection we’ve encountered in Singapore over 20 years.
CPF Contributions
Five age-band CPF rates apply to Citizens and PRs. Ordinary Wage ceiling updates each January (S$7,400 in 2025, S$8,000 in 2026). Additional Wage ceiling is S$102,000 less OW CPF paid in the year. Employer 17% and employee 20% contributions remitted to CPF Board by the 14th monthly.
AIS / IR8A Submission
Annual income information submitted electronically to IRAS by 1 March. Mandatory for employers with 5 or more employees. Covers salary, bonuses, AWS, director fees, stock awards, benefits-in-kind, and car benefits. IRAS pre-populates employee tax returns from AIS data, so errors trigger employee queries and IRAS reviews.
Foreign Worker Levy
Monthly FWL computed for S Pass (S$550–S$650 tier-dependent) and Work Permit holders (S$300–S$950 sector-dependent) based on quota tier and dependency ratio. Exceeding dependency ratio makes further S Pass or WP applications impossible. Levy remitted to MOM via GIRO with monthly statements.
Progressive Wage Model
PWM minimum wage rates above general minimums apply in seven covered sectors: cleaning, security, landscape, retail, food services, waste management, and lift and escalator maintenance. Annual rate updates must be applied before effective date. Compliance certificates are required for government contract eligibility and work pass applications.
One workforce. Two entirely different compliance tracks.
Singapore payroll divides into two compliance tracks: Citizens and Permanent Residents subject to full CPF contributions and progressive income tax, and Work Pass holders (EP, S Pass, Work Permit) where CPF does not apply to Employment Pass holders, but Foreign Worker Levy applies to S Pass and Work Permit holders.
Parallel Compliance Engines
(All age bands)
CPF contributions 20% employee + 17% employer (below 55) on Ordinary Wages up to S$7,400/month (2025). Age-graduated rates apply from 55 onwards. Additional Wages also subject to CPF up to AW ceiling.
SDL 0.25% employer-paid Skills Development Levy on gross wages, minimum S$2 and maximum S$11.25 per month. Remitted to SkillsFuture Singapore.
Progressive income tax 0–24% on annual chargeable income. Most employees file via IRAS myTax Portal using AIS pre-filled data. Year-of-cessation tax clearance via IR21 for departing employees.
AIS / IR8A annual submission All employment income submitted electronically to IRAS by 1 March. Bonuses, AWS, director fees, benefits-in-kind, and stock awards must be included.
NSmen obligations Employers top up NS allowance to regular salary during in-camp training. MedRisk contributions and IPPT cash awards must be reported correctly.
(EP, S Pass, Work Permit)
No CPF for EP holders Employment Pass holders are explicitly excluded from CPF. Income tax applies at progressive resident rates (if tax resident) or 15% flat rate (non-resident), whichever is higher.
Foreign Worker Levy (S Pass/WP) Monthly FWL of S$550–S$650 (S Pass, tier-dependent) or S$300–S$950 (Work Permit, sector-dependent) paid by employer to MOM via GIRO. Quota dependency ratio must be maintained.
COMPASS assessment (EP) New EP applications assessed under COMPASS framework. Salary must benchmark at or above the 20th percentile for local PMET peers in the same occupation. Employer local workforce share also scored.
IR21 tax clearance Employer must file IR21 with IRAS at least one month before the pass holder ceases employment or leaves Singapore for more than 3 months. Employer must withhold final salary pending clearance.
SDL applies to all SDL 0.25% applies to all employees regardless of pass type. Mandatory for Citizens, PRs, and all work pass holders.
Singapore payroll compliance calendar
Key CPF, IRAS, and MOM deadlines for 2025–26.
2025
CPF OW Ceiling Rises to S$7,400
Ordinary Wage ceiling increased from S$6,800 to S$7,400 per month from 1 January 2025. Payroll systems must apply the new ceiling from the January payroll run. Further increase to S$8,000 scheduled for January 2026.
2026
CPF December Contributions Due
CPF contributions for December salary must be paid to CPF Board by 14 January 2026 (or 14th of each month for monthly payroll). Late payment incurs interest at 1.5% per month.
2026
CPF OW Ceiling Rises to S$8,000
Ordinary Wage ceiling increases from S$7,400 to S$8,000 per month from 1 January 2026. All payroll systems must update before the first January 2026 payroll run.
2026
AIS / IR8A Submission Deadline
All income information for the 2025 calendar year must be submitted electronically to IRAS via the Auto-Inclusion Scheme by 1 March 2026. Covers salary, bonuses, AWS, director fees, benefits-in-kind, and stock awards.
Singapore is one market.
Mercans covers all of Asia-Pacific on one platform.
From Singapore to Malaysia, Indonesia, the Philippines, Japan, and Australia — Mercans delivers native payroll across every major APAC jurisdiction on a single contract, with consolidated multi-country reporting and a single point of contact.
covered
1 contract
consolidation
APAC
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that IRAS, CPF Board, MOM, MAS expect to receive.
