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The CPF contribution rate you pay depends on your age and wage level. Many employees and employers miscalculate because the rates change at specific age thresholds.
Singapore’s CPF system uses a tiered structure, with different allocations going to Ordinary, Special, and MediSave accounts. The rates also differ for Singapore Citizens and Permanent Residents.
The full 2026 contribution tables are available directly from the CPF Board, and this guide presents them in a scannable format for immediate use.
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What Is CPF and Who Must Contribute
The Central Provident Fund (CPF) is a mandatory social security savings scheme for Singapore Citizens and Permanent Residents. It covers retirement, housing, and healthcare needs through three main accounts.
Contributions are required for employees earning more than SGD 50 per month. Both the employer and the employee contribute, with rates determined by the employee’s age and citizenship status.
Self-employed persons are not subject to mandatory CPF contributions from an employer, but they must contribute to MediSave if their net trade income exceeds SGD 6,000 per year.
CPF Contribution Rates by Age Group (2026)
The total CPF contribution rate is the combined percentage paid by both employer and employee. Rates decrease progressively as employees get older, reflecting the government’s policy to support older worker employment.
The table below applies to Singapore Citizens and third-year and beyond Permanent Residents earning above SGD 750 per month:
| Age Group | Employer (%) | Employee (%) | Total (%) |
|---|---|---|---|
| 55 and below | 17 | 20 | 37 |
| Above 55 to 60 | 15 | 16 | 31 |
| Above 60 to 65 | 11.5 | 10.5 | 22 |
| Above 65 to 70 | 9 | 7.5 | 16.5 |
| Above 70 | 7.5 | 5 | 12.5 |
These rates apply to the Ordinary Wage (OW) up to the monthly ceiling. Wages above the ceiling are not subject to CPF contributions for that month’s OW component.
Employee vs Employer Breakdown
The employer’s contribution is an additional cost on top of the employee’s gross salary. It does not come out of the employee’s take-home pay. The employee’s share is deducted directly from their monthly wage.
For an employee aged 35 earning SGD 5,000 per month, the calculation works as follows:
- Employee contribution: SGD 5,000 x 20% = SGD 1,000
- Employer contribution: SGD 5,000 x 17% = SGD 850
- Total CPF credited: SGD 1,850
- Employee’s take-home pay: SGD 5,000 – SGD 1,000 = SGD 4,000
The combined SGD 1,850 is then allocated across the Ordinary Account (OA), Special Account (SA), and MediSave Account (MA) based on the employee’s age. Younger employees receive a higher allocation to the OA, which can be used for housing.
Ordinary Wage Ceiling and Additional Wages
The Ordinary Wage (OW) ceiling is the maximum monthly wage subject to CPF contributions. For 2026, the OW ceiling is SGD 6,800 per month. This ceiling is being raised progressively from SGD 6,000 to SGD 8,000 by 2026 under the government’s phased implementation plan.
Additional Wages (AW) such as annual bonuses are also subject to CPF, but capped by the Annual Wage Ceiling (AWC). The AWC is SGD 102,000 per year, minus the total OW already contributed for that year.
Key points to remember:
- Wages between SGD 50 and SGD 500: only employer contributes
- Wages above SGD 500 to SGD 750: graduated employee contribution applies
- Wages above SGD 750: full contribution rates apply for both parties
- Wages above the OW ceiling: no additional OW CPF for that month
CPF Rates for Permanent Residents
Permanent Residents (PRs) in their first and second year of PR status contribute at reduced rates. This graduated structure gives new PRs time to adjust to the full CPF obligations before reaching parity with citizens.
First-year PR rates (employer/employee) for those aged 55 and below: 4% employer and 5% employee. Second-year rates increase to 9% employer and 15% employee. From the third year onward, full citizen rates apply.
Employers must track the PR anniversary date carefully to apply the correct rate. Many businesses use payroll software providers and top HRIS systems to automate this tracking and avoid underpayment penalties.
Staying Compliant With Payroll Obligations
CPF contributions must be paid by the 14th of the following month. Late payment attracts a late payment interest of 1.5% per month, calculated from the first day of the month the contribution was due.
Employers are responsible for both their own share and the employee’s share. The employee’s portion is deducted from wages, but the employer must remit the full combined amount to the CPF Board.
Steps to ensure compliance:
- Verify each employee’s age and citizenship status at onboarding
- Update records when employees cross age thresholds (55, 60, 65, 70)
- Use the CPF Board’s official contribution calculator for verification
- Submit contributions via CPF e-Submit or an integrated payroll system
- Retain payroll records for at least five years
For official rates, calculators, and submission portals, refer directly to the CPF Board’s official website. All rate updates are published there before they take effect.
Frequently Asked Questions About CPF Contribution Rates
What is the CPF contribution rate for employees aged 55 and below?
The total rate is 37%, with 20% contributed by the employee and 17% by the employer. This applies to wages up to the Ordinary Wage ceiling of SGD 6,800 per month.
Do CPF contribution rates change automatically when an employee turns 55?
Yes, the new rates apply from the first day of the month following the employee’s 55th birthday. Employers must update payroll records proactively to avoid overpayment or underpayment.
Are CPF contributions required for part-time employees?
Yes, if a part-time employee earns more than SGD 50 per month and is a Singapore Citizen or PR, CPF contributions are mandatory. The same age-based rates apply regardless of whether employment is full-time or part-time.
What happens if an employer fails to pay CPF contributions on time?
The CPF Board charges late payment interest at 1.5% per month on the outstanding amount. Persistent non-compliance can result in prosecution, with penalties including fines and imprisonment for employers.
Is there a CPF contribution for employees earning above the Ordinary Wage ceiling?
The OW ceiling caps the monthly wage subject to CPF. Wages above SGD 6,800 per month are not subject to OW CPF contributions, but bonuses and other Additional Wages are still subject to CPF up to the Annual Wage Ceiling.
Can employees voluntarily contribute more to their CPF accounts?
Yes, employees can make voluntary top-ups to their CPF accounts beyond the mandatory contributions. Top-ups to the Special or Retirement Account may qualify for personal income tax relief, subject to CPF Board limits.
Conclusion
Understanding the correct CPF contribution rate for each employee is a fundamental payroll obligation in Singapore. Rates vary by age group, citizenship status, and wage level, and they are updated periodically by the CPF Board.
Always verify current rates directly with the CPF Board before processing payroll, especially when employees cross age thresholds or change PR year status. Accurate contributions protect both employees’ retirement savings and employers from compliance penalties.
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