CPF Contributions

CPF contributions are the mandatory monthly payments that Singapore employers and employees make into an employee's Central Provident Fund (CPF) accounts. The contribution is a percentage of wages, split into an employer share and an employee share, and the percentage falls in steps as the employee ages. The contribution rules described here apply to employees who are Singapore Citizens or Singapore Permanent Residents (SPRs). Self-employed persons and platform workers follow separate rules covered in self employed cpf and platform workers. Canonical current rates and the Ordinary Wage ceiling are tracked in annual rates.

Contribution rates by age band

The CPF contribution rate for a Singapore Citizen, or an SPR from the third year of permanent residence, earning more than S$750 a month depends on the employee's age band. From 1 January 2026 the total rates are 37% for employees aged 55 and below (17% employer, 20% employee), 34% above 55 to 60 (16% and 18%), 25% above 60 to 65 (12.5% each), 16.5% above 65 to 70 (9% and 7.5%), and 12.5% above 70 (7.5% and 5%) (CPF Board, accessed Oct 2026).

An employee moves to the lower age-band rate from the first day of the month after the 55th, 60th, 65th or 70th birthday. The employer pays both the employer and employee shares to CPF Board. CPF Board instructs employers to round the total contribution to the nearest dollar and to drop cents from the employee's share (CPF Board, accessed Oct 2026).

The contribution is computed on wages up to applicable ceilings. From 1 January 2026, the monthly Ordinary Wage (OW) ceiling is S$8,000, the final step of a phased rise from S$6,000. The separate annual salary ceiling is S$102,000; the Additional Wage (AW) ceiling equals S$102,000 minus that employee's OW subject to CPF for the year, calculated per employee, per employer and per calendar year. The monthly OW cap and annual total-wage ceiling are not added as interchangeable caps (CPF Board, accessed 14 October 2026; CPF Board, accessed 14 October 2026).

Wage thresholds for low earners

CPF contributions use three monthly wage thresholds that matter for part-time and low-wage employees. An employer must contribute for a Singapore Citizen or SPR whose total wages exceed S$50 a month. Where wages are above S$50 but not more than S$500, only the employer's share is payable and there is no employee's share. Between S$500 and S$750, the employee's share is phased in, and the full age-band rates in the table apply only above S$750 a month (CPF Board, accessed Oct 2026).

The threshold design means that a low-wage worker's take-home pay is not reduced by CPF until monthly wages pass S$500, while the employer's contribution still builds the worker's savings. Eligible low-wage workers may also receive Workfare Income Supplement payments, as described in workfare and support schemes.

Graduated rates for new permanent residents

CPF contributions for Singapore Permanent Residents start at lower graduated rates. CPF Board publishes separate rate tables for an SPR's first and second year of permanent residence. The first year begins on the day of SPR conversion, the second year begins on the first day of the month after the first anniversary, and full rates apply from the first day of the month after the second anniversary (CPF Board, accessed Oct 2026).

The employer and the SPR employee may jointly apply to contribute at higher rates before the third year. The two options are full rates for both parties, or full employer rates combined with graduated employee rates (CPF Board, accessed Oct 2026). The joint application matters because a PR who expects to stay builds retirement and housing savings faster under full rates, at the cost of lower take-home pay in the first two years. The graduated SPR rates are unchanged by the 2027 senior-worker increase described below (CPF Board, accessed Oct 2026).

Senior-worker rate increases in 2027

CPF contribution rates for employees aged above 55 to 65 have been raised in steps to strengthen the retirement adequacy of older workers, and a further increase takes effect on 1 January 2027. For employees earning more than S$750 a month, the total rate for those above 55 to 60 rises from 34% to 35.5% (employer 16.5%, employee 19%), and the total for those above 60 to 65 rises from 25% to 26% (13% each). Rates for employees aged 55 and below, above 65 to 70, and above 70 are unchanged at 37%, 16.5% and 12.5% (CPF Board, accessed Oct 2026).

The additional contributions for employees above 55 to 65 are allocated to the Retirement Account up to the employee's Full Retirement Sum; once that sum is already set aside, the increase goes to the Ordinary Account. Phased-in rates for senior workers earning S$500 to S$750 rise proportionally (CPF Board, accessed Oct 2026).

The senior-worker increases reflect a trade-off. Higher rates raise retirement savings for workers approaching the CPF LIFE payout age (see cpf life), but they also raise the cost of employing older workers and reduce their take-home pay. Questions about whether CPF savings are adequate in retirement are covered in cpf retirement adequacy.