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The CPF contribution table confuses many employers and employees every month. Getting the rates wrong leads to penalties and underpayments.
CPF rates change based on age brackets and wage ceilings. Each bracket has a different split between employer and employee portions.
Knowing the exact rates for each age group removes all guesswork from payroll processing and keeps every contribution accurate.
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What Is CPF and Who Must Contribute
The Central Provident Fund (CPF) is Singapore’s mandatory social security savings scheme. It covers retirement, healthcare and housing needs for employees and their families.
Contributions are compulsory for all Singapore Citizens and Permanent Residents who are employed under a contract of service. Self-employed persons contribute only to Medisave, not to the full CPF scheme.
Employers must submit contributions by the 14th of the following month. Late submissions attract interest charges and possible enforcement action from the CPF Board.
CPF Contribution Rates by Age Group
The table below shows the standard rates for employees earning more than $750 per month. Employees earning between $500 and $750 have graduated employer contributions.
Rates are expressed as a percentage of the employee’s ordinary wages:
- Up to 55 years: Employer 17%, Employee 20%, Total 37%
- Above 55 to 60 years: Employer 15%, Employee 16%, Total 31%
- Above 60 to 65 years: Employer 11.5%, Employee 10.5%, Total 22%
- Above 65 to 70 years: Employer 9%, Employee 7.5%, Total 16.5%
- Above 70 years: Employer 7.5%, Employee 5%, Total 12.5%
These rates apply to the full ordinary wage up to the Ordinary Wage Ceiling. Any amount above the ceiling is not subject to CPF on the ordinary wage component.
Employers using a payroll system with built-in CPF logic can automate the age-bracket lookup and apply the correct split instantly for every employee record.
Ordinary, Special and Medisave Account Allocation
Total CPF contributions are split across three accounts. The allocation ratio shifts as the member ages, directing more funds toward healthcare in later years.
For members up to 35 years old, the allocation from the combined 37% is:
- Ordinary Account (OA): 23% of wage
- Special Account (SA): 6% of wage
- Medisave Account (MA): 8% of wage
From age 35 to 45, the OA share decreases slightly while MA increases. From 45 to 55, the shift continues. After 55, a Retirement Account is created and funds from OA and SA are transferred into it to meet the Full Retirement Sum.
Understanding this allocation matters for employees planning housing withdrawals or investment schemes through the OA. Withdrawing OA funds reduces the amount available for retirement top-ups.
Ordinary Wage Ceiling and Additional Wage Ceiling
The Ordinary Wage (OW) Ceiling caps the monthly wage on which CPF contributions are calculated. The current cap is $6,800 per month. Any ordinary wage above this amount does not attract CPF contributions.
The Additional Wage (AW) Ceiling applies to bonuses and other non-regular payments. The formula is:
- AW Ceiling = $102,000 minus total ordinary wages already subject to CPF for the year
This means an employee earning $6,800 per month will have an AW Ceiling of $102,000 minus ($6,800 x 12) = $20,400 for the year. Bonuses above this amount are CPF-exempt.
Employers must track cumulative ordinary wages throughout the year to apply the AW Ceiling correctly. Errors here often result in over-contribution or under-contribution on year-end bonuses.
How to Calculate CPF Contributions Step by Step
Follow these steps for each employee every payroll cycle:
- Step 1: Identify the employee’s age as of the last day of the calendar month.
- Step 2: Determine the applicable age bracket from the contribution table.
- Step 3: Cap the ordinary wage at $6,800 if it exceeds that amount.
- Step 4: Multiply the capped wage by the employer rate and the employee rate separately.
- Step 5: Round both figures to the nearest dollar (round down if below 50 cents, round up if 50 cents or above).
- Step 6: For bonuses, check whether the AW Ceiling has been reached for the year before applying rates.
- Step 7: Submit the total (employer + employee) to CPF Board via CPF e-Submit or an integrated payroll platform.
The CPF Board provides an official contribution calculator at www.cpf.gov.sg that automates Steps 1 through 5 for individual checks. For bulk payroll, an integrated software solution handles the full cycle without manual lookups.
Common Mistakes When Applying the Table
Even experienced payroll teams make errors when the contribution table is applied manually. The most frequent problems are:
- Using the wrong age bracket: The age used must reflect the employee’s age at the end of the month, not the start. A birthday mid-month changes the applicable rate immediately.
- Ignoring the OW Ceiling: Applying rates to the full salary above $6,800 results in over-contribution. The excess must be refunded through the CPF Board’s refund process.
- Misapplying the AW Ceiling on bonuses: Forgetting to subtract cumulative OW contributions from $102,000 leads to CPF being deducted on exempt bonus amounts.
- Confusing PR rates with Citizen rates: Permanent Residents in their first two years of PR status have lower contribution rates. Applying full Citizen rates to new PRs is a common error.
- Late submission: Missing the 14th-of-month deadline triggers a 1.5% per month interest charge on the outstanding amount.
A structured review of each payroll run against the current CPF contribution table prevents most of these issues before submission.
Perguntas Frequentes Sobre CPF Contributions
Does the CPF contribution table apply to part-time employees?
Yes. Part-time employees who are Singapore Citizens or Permanent Residents and earn more than $50 per month are subject to CPF contributions. The same age-bracket rates apply. Employees earning between $50 and $500 per month have reduced employee contributions but full employer contributions.
What happens if an employer contributes the wrong amount?
Under-contributions must be made up with interest at 1.5% per month from the due date. Over-contributions can be refunded by applying to the CPF Board directly. Both situations require documentation and may trigger an audit of past payroll records.
Are CPF contributions required for foreign employees on work passes?
No. CPF contributions are not required for foreign employees holding Employment Passes, S Passes or Work Permits. Only Singapore Citizens and Permanent Residents are covered under the CPF Act.
How do CPF rates change when an employee turns 55?
On the first day of the month after the employee’s 55th birthday, the combined rate drops from 37% to 31%. The employer portion decreases from 17% to 15% and the employee portion from 20% to 16%. Payroll records must be updated immediately to reflect the new bracket.
Is there a minimum wage before CPF contributions apply?
Employees earning $50 or less per month are exempt from CPF contributions entirely. Those earning between $50 and $500 per month follow a graduated scale where only the employer contributes. Full contributions from both parties apply only above $750 per month.
Conclusion
The CPF contribution table is the foundation of accurate payroll compliance in Singapore. Knowing the correct rate for each age bracket, applying the Ordinary Wage Ceiling and tracking the Additional Wage Ceiling for bonuses eliminates the most costly errors employers face.
Review the table at the start of each payroll cycle, update employee age brackets as birthdays occur, and cross-check bonus payments against the annual AW Ceiling. These three habits keep every CPF submission accurate and on time.
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