CPF contribution rates 2026 and the 2027 changes: what employers need to do
The short answer
From 1 January 2026, CPF is payable on Ordinary Wages up to S$8,000 a month (up from S$7,400), and total CPF rose to 34% for employees above 55 to 60 and 25% for those above 60 to 65. From 1 January 2027, those two bands rise again, to 35.5% and 26%. The annual salary ceiling stays at S$102,000.
What changed on 1 January 2026
Two changes took effect at the start of 2026. Both affect what you deduct from salaries and what you pay on top as the employer.
The Ordinary Wage ceiling rose to S$8,000
The Ordinary Wage ceiling is the most of an employee's monthly salary that attracts CPF. It rose from S$7,400 to S$8,000 a month. Employees earning S$7,400 or less see no change from this. Employees earning more now have up to S$600 more of their monthly salary subject to CPF.
Higher rates for employees above 55 to 65
For wages above S$750 a month, the 2026 rates are:
- 55 and below: 17% employer, 20% employee, 37% total
- Above 55 to 60: 16% employer, 18% employee, 34% total
- Above 60 to 65: 12.5% employer, 12.5% employee, 25% total
- Above 65 to 70: 9% employer, 7.5% employee, 16.5% total
- Above 70: 7.5% employer, 5% employee, 12.5% total
These apply to Singapore Citizens and to PRs from their third year. PRs in their first two years and wages of S$750 and below have different rates; see the CPF Board's rate tables.
What changes on 1 January 2027
The rates for older workers rise again from 1 January 2027:
- Above 55 to 60: total rises from 34% to 35.5% (employer 16.5%, employee 19%)
- Above 60 to 65: total rises from 25% to 26% (employer 13%, employee 13%)
Rates for employees aged 55 and below, and above 65, are unchanged. Payroll for January 2027 must use the new rates for anyone in the two affected bands.
Worked example: what it costs
Employee aged 58, monthly salary S$5,000
| Employer CPF, 202616% of S$5,000 | S$800 |
| Employer CPF, from 1 Jan 202716.5% of S$5,000 | S$825 |
| Employee CPF, 202618% of S$5,000 | S$900 |
| Employee CPF, from 1 Jan 202719% of S$5,000 | S$950 |
| Extra cost to the employer in 2027S$25 a month × 12 | S$300 a year |
The employee's take-home pay falls by S$50 a month, because their share rises by 1 percentage point.
Sample only. Names and figures are illustrative.
Employee aged 40, monthly salary S$9,000
| Extra wages subject to CPF each monthS$8,000 − S$7,400 | S$600 |
| Extra employee CPF each month20% of S$600 | S$120 |
| Extra employer CPF each month17% of S$600 | S$102 |
Sample only. Names and figures are illustrative.
What it means for bonuses
The annual salary ceiling stays at S$102,000. CPF on a bonus is capped by the Additional Wage ceiling: S$102,000 minus the Ordinary Wages subject to CPF for the year. With the monthly ceiling at S$8,000, an employee earning S$8,000 or more every month has S$96,000 of Ordinary Wages subject to CPF over a full year, leaving an Additional Wage ceiling of just S$6,000. Under the old S$7,400 ceiling, the same employee's Additional Wage ceiling would have been S$13,200.
So for high earners, less of a year-end bonus now attracts CPF. Check any employee with the CPF on bonus calculator.
Checklist for employers
- Confirm your payroll applied the S$8,000 ceiling from January 2026 for everyone earning above S$7,400.
- Check that employees above 55 to 65 are on the 2026 rates.
- List employees who will be above 55 to 65 in January 2027, including anyone whose birthday moves them into a new band.
- Update payroll rates before the January 2027 run, and budget for the higher employer share.
- Tell affected employees in December that their CPF deduction will rise.
- Plan year-end bonuses with the Additional Wage ceiling in mind.
If you'd rather not track this yourself, our CPF submission service applies every rate and ceiling change before the first payroll it affects. To check a single employee now, use the CPF contribution calculator, which has a toggle for the 2027 rates. For the full monthly service, see monthly payroll processing.
Official source: CPF Board, how much CPF contributions to pay. This guide is general information, not legal or tax advice.