Employer’s Guide to CPF Contribution Rates in Singapore (2026 and 2027)
By Lucas Seah, Founder of Excellence Singapore Group | Last Updated: June 2026
For employees aged 55 and below, the employer CPF contribution rate in Singapore is 17 percent and the employee share is 20 percent, a combined 37 percent of monthly wages up to the S$8,000 Ordinary Wage ceiling. Rates step down with age, and they rise again for senior workers from 1 January 2027. This guide gives employers the full rate table by age, the wage ceilings, payment deadlines, and the common mistakes that trip up Singapore payroll.
Key Takeaways
- For employees 55 and below, employers pay 17 percent and employees pay 20 percent, a total of 37 percent of wages, on Ordinary Wages up to the S$8,000 monthly ceiling.
- CPF rates step down by age: 34 percent (above 55 to 60), 25 percent (above 60 to 65), 16.5 percent (above 65 to 70), and 12.5 percent (above 70) in 2026.
- From 1 January 2027, senior-worker rates rise again: above 55 to 60 goes to 35.5 percent total and above 60 to 65 goes to 26 percent total.
- The Ordinary Wage ceiling is S$8,000 a month and the annual CPF salary ceiling is S$102,000 (Ordinary Wages plus Additional Wages).
- CPF is payable only for Singapore Citizens and Permanent Residents, due by the last day of the month, with enforcement if unpaid by the 14th of the next month.
What are the employer CPF contribution rates in 2026?
For most employees, the employer pays a share and the employee pays a share, both calculated on the same wages up to the contribution ceiling. For an employee aged 55 and below, the employer contributes 17 percent and the employee contributes 20 percent, a total of 37 percent. The rates then taper with age. These are the rates that apply from 1 January 2026 for employees earning more than S$750 a month, as published by the CPF Board.
The table below is the one most employers come here for. It is the 2026 rate by age, with the 2027 change shown alongside so you can plan ahead.
Swipe sideways to see the full table →
| Age band | 2026 Total | 2026 Employer | 2026 Employee | 2027 Total (change) |
|---|---|---|---|---|
| 55 and below | 37% | 17% | 20% | 37% (no change) |
| Above 55 to 60 | 34% | 16% | 18% | 35.5% (+1.5) |
| Above 60 to 65 | 25% | 12.5% | 12.5% | 26% (+1.0) |
| Above 65 to 70 | 16.5% | 9% | 7.5% | 16.5% (no change) |
| Above 70 | 12.5% | 7.5% | 5% | 12.5% (no change) |
| Rates apply to monthly wages above S$750, on Ordinary Wages up to the S$8,000 ceiling. Source: CPF Board, contribution rates from 1 January 2026 and 1 January 2027 (cpf.gov.sg). | ||||
The chart shows how the employer and employee shares move across the age bands in 2026.
A few practical points. CPF is calculated on wages up to the Ordinary Wage ceiling, so the employer share for a 55-and-below employee is 17 percent of wages up to S$8,000, capped at S$1,360 a month on Ordinary Wages. The employee share is deducted from gross pay and shown on the itemised payslip; the employer share is paid on top, so the true cost of an employee is the gross salary plus the employer CPF. If you want to see the take-home and employer-cost split for a given salary, use our Singapore take-home salary calculator.
What changes on 1 January 2027?
The CPF rates for senior workers rise again from 1 January 2027. This is the next step in the multi-year increase for older employees, and only two age bands are affected. According to the CPF Board, from 1 January 2027:
- For employees above 55 to 60, the total rate rises from 34 percent to 35.5 percent. The employer share goes from 16 percent to 16.5 percent (up 0.5 percentage points) and the employee share goes from 18 percent to 19 percent (up 1 percentage point).
- For employees above 60 to 65, the total rate rises from 25 percent to 26 percent. The employer share goes from 12.5 percent to 13 percent and the employee share goes from 12.5 percent to 13 percent (each up 0.5 percentage points).
Rates for employees 55 and below, above 65 to 70, and above 70 do not change in 2027. The increase for the 55-to-65 group is fully allocated to the employee’s Retirement Account. The practical job for payroll is to update the rates again at the 2027 turn of the year, exactly as you do for 2026.
The Ordinary Wage ceiling and the annual ceiling explained
Two ceilings cap how much wage attracts CPF. The Ordinary Wage (OW) ceiling is S$8,000 a month from 1 January 2026, confirmed by the CPF Board. Ordinary Wages are the regular monthly wages, such as salary, and CPF is only payable on the first S$8,000 of OW each month. Wages above S$8,000 a month do not attract CPF on the Ordinary Wage side.
The annual CPF salary ceiling is S$102,000. This is the most that combined Ordinary Wages and Additional Wages can attract CPF in a calendar year. Additional Wages (AW), such as the annual bonus, have their own ceiling: S$102,000 minus the total Ordinary Wages already subject to CPF for the year, as set out by the CPF Board. In plain terms, the more OW an employee has earned during the year, the smaller the room left for CPF on the bonus.
The January bonus trap: paying a large bonus early in the year, before much Ordinary Wage has accrued, can push more of it under the Additional Wage ceiling than expected, which raises the CPF bill that month. It is not wrong, but it surprises employers who budgeted only for the bonus itself and forgot the employer CPF on top of it.
Who must pay CPF?
CPF contributions are payable for employees who are Singapore Citizens and Singapore Permanent Residents, at the rates above, as stated by the CPF Board. Employers do not pay CPF for foreign employees who hold a work pass, such as an Employment Pass or Work Permit. For foreign staff, the employer’s statutory cost is the Skills Development Levy and, where applicable, the foreign worker levy, not CPF.
New Permanent Residents pay at graduated rates in their first two years of PR status before moving to full rates, unless the employer and employee jointly apply to pay at full rates earlier. If you are unsure whether a worker is even an employee for CPF purposes, our guide on employee versus contractor under MOM guidelines helps you classify correctly, because genuine contractors are not on payroll CPF.
Employer obligations and deadlines
Employers must compute CPF, deduct the employee’s share from wages, and pay the combined amount to the CPF Board each month. The due date is the last day of the calendar month for which contributions are due. Enforcement action follows if contributions are not paid by the 14th of the following month, and late payment interest runs at 1.5 percent per month from the first day after the due date, as the CPF Board explains.
Contributions are submitted electronically, normally through CPF EZPay. The employee CPF figure that you deduct is the same figure that appears on the payslip, and the wages and CPF you report feed into the year-end Form IR8A for income reporting. Getting the monthly numbers right is what keeps the year-end filing clean.
Common employer CPF mistakes
These are the recurring errors we see when we take over a new client’s payroll. None are exotic; they come from small timing and classification slips that compound.
- Not updating rates at the turn of the year. Rates changed for 2026 and change again for senior workers in 2027. Payroll software set up with old rates quietly under-contributes until someone notices.
- Mishandling a birthday. When an employee crosses into a new age band, the new (lower) rate applies from the first day of the month after the month of the birthday. Applying it in the wrong month is a common slip.
- Forgetting the Additional Wage ceiling on bonuses. Employers budget the bonus but forget the employer CPF on top of it, then over-contribute or under-contribute because the AW ceiling was not tracked against year-to-date Ordinary Wages.
- Treating a foreigner or a contractor as CPF-liable, or the reverse. CPF is for Citizens and PRs only. Misclassifying a genuine employee as a contractor to avoid CPF is the more dangerous error.
- Paying late. Missing the 14th triggers interest and enforcement. For directors paying themselves, the salary-versus-dividend split also changes the CPF picture, which we cover in director salary versus dividends.
Many of these disappear when payroll is run by a specialist who updates rates centrally and reconciles the ceilings every month. Our payroll outsourcing service is built around exactly that. If you want to know what that costs, see our guide on payroll outsourcing cost in Singapore, or compare providers in best payroll services in Singapore.
How CPF flows into payslips and year-end filing
CPF is not a standalone task; it is one line in a chain. Each month, the employee CPF deduction must appear on the itemised payslip, which is itself a legal requirement under the Employment Act, covered in our guide to itemised payslips and Key Employment Terms. At year end, the wages and CPF you paid are reported on Form IR8A. When the monthly CPF is correct, the payslip and the IR8A both reconcile without rework. When it is wrong, the error surfaces at the worst time, during the year-end rush.
Key Takeaway: Employer CPF in 2026 is 17 percent for staff 55 and below (37 percent total) on wages up to the S$8,000 Ordinary Wage ceiling, tapering with age, and rising again for senior workers from 1 January 2027. Update your rates each January, track the S$8,000 and S$102,000 ceilings, pay only for Citizens and PRs, and meet the monthly deadline. This guide draws on the CPF Board’s employer pages: how much CPF contributions to pay, the 1 January 2027 contribution changes, the Ordinary Wage ceiling article, what payments attract CPF, and the contribution due-date article.
Frequently Asked Questions
What is the employer CPF contribution rate in 2026?
For an employee aged 55 and below, the employer contributes 17 percent and the employee contributes 20 percent, a total of 37 percent of wages, on Ordinary Wages up to the S$8,000 monthly ceiling. The employer rate is lower for older employees: 16 percent (above 55 to 60), 12.5 percent (above 60 to 65), 9 percent (above 65 to 70), and 7.5 percent (above 70).
What is the CPF Ordinary Wage ceiling in 2026?
The Ordinary Wage ceiling is S$8,000 a month from 1 January 2026. CPF is payable only on the first S$8,000 of monthly Ordinary Wages. The annual CPF salary ceiling, which covers Ordinary Wages plus Additional Wages such as bonuses, is S$102,000 for the year.
How do CPF rates change in 2027?
From 1 January 2027, senior-worker rates rise. For employees above 55 to 60, the total rate goes from 34 percent to 35.5 percent (employer 16.5 percent, employee 19 percent). For employees above 60 to 65, the total rate goes from 25 percent to 26 percent (employer 13 percent, employee 13 percent). Other age bands are unchanged.
Do employers pay CPF for foreign employees?
No. CPF contributions are payable only for Singapore Citizens and Singapore Permanent Residents. Employers do not pay CPF for foreign employees on a work pass. For foreign staff, the employer’s statutory costs are the Skills Development Levy and, where applicable, the foreign worker levy.
When must employers pay CPF each month?
CPF contributions are due on the last day of the calendar month for which they apply. Enforcement action is taken if contributions are not paid by the 14th of the following month, and late payment interest of 1.5 percent per month applies from the first day after the due date.
How much CPF does an employer pay for a senior worker?
In 2026, the employer pays 16 percent for an employee above 55 to 60, 12.5 percent for above 60 to 65, 9 percent for above 65 to 70, and 7.5 percent for above 70. From 1 January 2027, the employer share rises to 16.5 percent for above 55 to 60 and 13 percent for above 60 to 65.
Talk to Us
CPF rates change, ceilings shift, and a missed deadline costs interest and enforcement. Excellence Singapore runs payroll for Singapore SMEs so the rates are always current, the ceilings are tracked every month, and contributions are paid on time. Our payroll outsourcing service handles CPF, payslips, and IR8A end to end. If you would like us to take payroll off your desk, talk to us and we will map it to your headcount.
