CPF contribution rates (2026 & 2027): what employees and employers pay

CPF (Central Provident Fund) is Singapore’s mandatory savings scheme for Singaporeans and Permanent Residents (PRs), requiring both employees and employers to contribute a portion of wages each month toward retirement, healthcare, and housing. 

CPF contribution rates are not static. The Singapore government periodically adjusts them as part of a broader effort to strengthen retirement adequacy, particularly for older workers. The most recent changes took effect on 1 January 2026, when contribution rates increased for employees aged above 55 to 65, and the Ordinary Wage (OW) ceiling—the cap on monthly wages subject to CPF contributions—rose from $7,400 to $8,000. These changes mean higher CPF inflows for affected workers, and a larger CPF liability for their employers.

Further adjustments are already on the horizon. From 1 January 2027, contribution rates for workers aged above 55 to 65 are scheduled to increase again, continuing a phased approach that the government has been implementing to bring older workers’ rates closer to those of younger employees. 

This article sets out the current CPF contribution rates for 2026 in full—by age group, for both employees and employers—along with a breakdown of what changed from 2025, what is coming in 2027, and how to calculate the actual dollar amount deducted from a salary.

What is the CPF contribution rate in Singapore?

The CPF contribution rate ranges from 12.5% to 37% of wages, depending on the employee's age. It is split between two parties: the employee's share is deducted from their salary, while the employer's share is paid on top of it.

Contributions are calculated on two types of wages. Ordinary Wages (OW) are regular monthly payments such as basic salary—from 1 January 2026, contributions on OW are capped at $8,000 per month. Additional Wages (AW) cover variable payments such as bonuses and commissions, subject to an annual ceiling of $102,000 minus the total OW already subject to CPF that calendar year.

Foreign employees on Employment Passes, S Passes, or Work Permits are not subject to CPF.

What are the CPF contribution rates by age group in 2026?

From 1 January 2026, employees aged 55 and below contribute 20% of their wages, with employers contributing a further 17%, for a combined rate of 37%. Rates step down progressively for older workers.

The table below applies to Singapore Citizens and Permanent Residents from their third year of PR status, earning more than $750 per month. 

For employees earning between $500 and $750 per month, phased-in contribution rates apply. The CPF Board's contribution rate tables provide the full breakdown for these wage bands.

Once contributions are credited, they are distributed across three accounts: the Ordinary Account (OA), Special Account (SA), and MediSave Account (MA). For a full explanation of how that split works by age, see our article on CPF allocation rates.

What are the changes to CPF contribution rates in 2026 and 2027?

First, the OW ceiling rose from $7,400 to $8,000 per month. Second, the contribution rates from employees aged above 55 to 65 increased in 2026, and are scheduled to increase again on 1 January 2027. This is part of the government’s effort to further strengthen retirement adequacy of senior employees, and the increases in contribution rates are shared between employers and employees.

What are the CPF contribution rates for senior workers in 2027?

From 1 January 2027, employees aged above 55 to 60 will contribute 19% of wages and employers 16.5%, a combined 35.5%. For those above 60 to 65, employees and employers will each contribute 13%, a combined 26%.

The full increase goes into the Retirement Account (RA), which members hold from age 55, up to the Full Retirement Sum (FRS). Once an employee has set aside the FRS in their RA, the increase goes to the OA instead. The changes apply to wages earned from 1 January 2027. CPF Board’s allocation rate table from 1 January 2027 shows the full split across accounts.

Senior workers earning more than $500 to $750 a month contribute at phased-in rates, which will rise proportionately. The graduated rates for first- and second-year PRs do not change. The government will also provide employers with a one-year CPF Transition Offset to help with the higher cost.

To see the effect on take-home pay, take two Singapore Citizens earning $5,000 a month, one aged 58 and one aged 62:

Take-home pay falls by $50 a month for the 58-year-old and $25 for the 62-year-old. Total CPF credited rises by $75 and $50 respectively, and the extra contributions go to each employee’s RA, up to the FRS.

How is the CPF deduction calculated on your salary?

CPF contributions are calculated on OW up to $8,000 per month, plus AW up to an annual ceiling of $102,000 minus total OW already subject to CPF that calendar year.

Here is a worked example for a Singapore Citizen aged 35 earning $5,000 per month:

For higher earners, once wages exceed $8,000 per month, CPF is no longer calculated on the excess. An employee aged 35, earning $10,000 per month, has CPF contributions calculated only on the first $8,000, capping the employee's monthly deduction at $1,600 and the employer's contribution at $1,360.

For rounding, the total CPF contribution is rounded to the nearest dollar (amounts below 50 cents are rounded down; 50 cents and above are rounded up). 

How are CPF contributions calculated on bonuses and Additional Wages?

Beyond your monthly salary, variable payments such as bonuses and commissions are also subject to CPF contributions. These are classified as AW, and they are subject to a separate annual ceiling—the AW ceiling—which limits the total amount of AW on which CPF contributions are payable in a given calendar year.

The AW ceiling is calculated as S$102,000 (Total Wage ceiling) minus the total OW already subject to CPF that calendar year. The same contribution rates (employee’s and employer’s share) apply to the bonus amount that falls below the AW ceiling.

What payments are not subject to CPF contributions?

Not all payments made to an employee attract CPF contributions. Three broad categories are excluded:

1. Reimbursements for business expenses: Reimbursement incurred on behalf of the employer for official purposes—for example, travel claims and the purchase of office supplies.
2. Termination benefit: Compensation that is not given for work done by the employee—for example, retrenchment benefit
3. Benefit in kind: Non-cash benefits and gifts—for example, a commemorative watch for work anniversaries.

For a full list of payments that attract or exclude CPF contributions, refer to the CPF Board's guide on what payments attract CPF contributions.

How to grow your CPF beyond mandatory contributions

CPF balances earn risk-free interest at a floor rate of 2.5% per annum (p.a.) on the OA, MA, and SA or RA. Members below 55 earn an extra 1% on the first $60,000 of combined CPF balances, and those aged 55 and above earn an extra 2% on the first $30,000 and an extra 1% on the next $30,000 (capped at $20,000 for OA). 

For members who prefer a stable, risk-free growth of their CPF savings, the Retirement Sum Topping-Up Scheme (RSTU) allows you to make voluntary cash top-ups to your SA or RA. Those aged 55 and above can get dollar-for-dollar grant on the first $2000 cash top-up made to their RA under the Matched Retirement Savings Scheme (MRSS).

For members who want their savings to earn potentially higher returns than CPF interest rates, the CPF Investment Scheme (CPFIS) allows eligible members to invest OA savings above $20,000 and SA savings above $40,000. As Singapore's first digital wealth adviser included by the CPF Board, Endowus allows you to invest your CPF OA and SA savings in diversified, low-cost portfolios at platform fees of 0.3–0.4% per annum with no sales charges—explore CPF investing with Endowus here.

Frequently asked questions about CPF contribution rates

What is the CPF contribution rate in 2026? 

For employees aged 55 and below, the total CPF contribution rate is 37%—20% from the employee and 17% from the employer—on wages up to $8,000 per month. Rates step down for employees above 55.

How much CPF does an employer pay in Singapore?

Employers in Singapore are required to contribute CPF on top of employee's salary, if the employee is Singaporean or PR. For employees aged 55 and below, that contribution is 17% of wages, up to the $8,000 monthly OW ceiling.

Employers must pay the total CPF contribution—comprising both the employer's and employee's shares—to the CPF Board. The employee's share is recovered by deducting it from the employee's wages at the point of payment. CPF contributions must be paid by the 14th of the following month. A late payment interest of 1.5% per month may be incurred on payments made after the 14th.

Are CPF contribution rates different for Permanent Residents?

PRs can choose to contribute at lower graduated rates in their first two years of PR status, before moving to the same full rates as Singapore Citizens from the third year onwards. The graduated rates for first- and second-year PRs do not change in 2027. For a complete breakdown of CPF rules specific to new PRs—including the graduated rate tables and the option to apply for full rates from year one—see our comprehensive guide to CPF for new PRs.

What is the CPF Ordinary Wage ceiling in 2026? 

$8,000 per month, effective 1 January 2026—up from $7,400 in 2025. CPF contributions are calculated only on wages up to this monthly ceiling, with a separate annual ceiling of $102,000 covering total wages including bonuses.

Will CPF contribution rates change again in 2027? 

Yes. From 1 January 2027, CPF contribution rates for employees aged above 55 to 65 will increase: by 1.5 percentage points to 35.5% for those above 55 to 60, and 1 point to 26% above 60 to 65.