What are the CPF contribution rates for 2026?
For employees below 55, the total CPF contribution rate is 37% of ordinary wages: 17% from the employer and 20% from the employee. Rates reduce progressively as employees get older, dropping to a combined 10% for those above 70. All rates apply to Singapore citizens and permanent residents earning more than S$50 a month.
The rates haven't changed dramatically from 2025 to 2026 for the under-55 group, but the Ordinary Wage ceiling increased from S$6,300 to S$6,800 per month from January 2026. That's the most important 2026 update for payroll calculations.
CPF contribution rates 2026 by age band
Applies to Singapore citizens and PRs earning above S$750/month. Lower contribution rates apply between S$50 and S$750 (graduated scale).
| Age Group | Employer Rate | Employee Rate | Total Rate |
|---|---|---|---|
| Below 55 | 17% | 20% | 37% |
| 55 to 60 | 13% | 15% | 28% |
| 60 to 65 | 9% | 9.5% | 18.5% |
| 65 to 70 | 7.5% | 5.5% | 13% |
| Above 70 | 5% | 5% | 10% |
Source: CPF Board Singapore. Rates for employees earning above S$750/month. Always verify against the CPF Board's official rate table before processing payroll.
How are CPF rates split between employee and employer?
The employer pays their share on top of the employee's gross salary. The employee's share is deducted from their wages. Both portions are paid together to the CPF Board by the 14th of the following month. The employer doesn't "split" a combined rate -- they pay their portion as an additional cost on top of salary.
Here's why this matters for budgeting: if you hire an employee at S$4,000/month, you're not just paying S$4,000. You're paying S$4,000 salary plus S$680 in employer CPF (17%), for a total of S$4,680 per month. That's the real cost before any other benefits. Use our total employee cost calculator to see the full picture including SDL and other levies.
Worked Example: Employee aged 35, salary S$4,000/month
What is the CPF rate for workers aged 55 to 65?
Workers aged 55 to 60 contribute at 28% total (13% employer, 15% employee). Those aged 60 to 65 contribute at 18.5% total (9% employer, 9.5% employee). The Singapore government has been gradually raising rates for older workers in recent years as part of the refresh of the CPF system.
It's worth knowing that the age used is the employee's age at the last day of the calendar month, not their birthday during the month. So if an employee turns 55 on 20 July, the lower rate applies from 1 July, not from the 20th. Many payroll systems don't handle this automatically, which is why it's a common error in manual payroll.
If you're running payroll for a mixed-age workforce, our CPF calculator handles each age band separately so you don't have to do it by hand.
How is the CPF contribution split between OA, SA and MA?
The total CPF contribution doesn't all go into one pot. It's divided between three accounts: the Ordinary Account (OA), Special Account (SA) and MediShield Account (MA). The allocation shifts toward MA and away from OA as employees get older, because healthcare needs increase with age.
| Age Group | OA (Housing/Investment) | SA (Retirement) | MA (Healthcare) |
|---|---|---|---|
| Below 35 | 23% | 6% | 8% |
| 35 to 45 | 21% | 7% | 9% |
| 45 to 55 | 19% | 8% | 10% |
| 55 to 60 | 15% | 3.5% | 9.5% |
| 60 to 65 | 12% | 1% | 5.5% |
| 65 to 70 | 8% | 1% | 4% |
| Above 70 | 7.5% | 1% | 1.5% |
Percentages are of the employee's ordinary wages. Rows sum to the employee's contribution rate (e.g. Below 35: 23+6+8 = 37%). Source: CPF Board.
How do you calculate CPF for part-time or variable-wage employees?
CPF applies to actual wages earned, not a standardised amount. For part-time employees, calculate CPF on the actual hourly or daily wages paid. For variable-wage workers (commission-based sales staff, for example), separate the Ordinary Wages from Additional Wages each month because different annual limits apply to each.
Ordinary Wages (OW) are wages earned in the same month -- salary, allowances, overtime. The monthly OW ceiling is S$6,800 in 2026. CPF is calculated on the lower of actual OW or S$6,800.
Additional Wages (AW) are wages not earned in the same month -- annual bonuses, commissions paid quarterly, sign-on bonuses. The AW ceiling is S$102,000 minus total OW already CPF'd that year. So if an employee earned S$6,800 x 12 = S$81,600 in OW, their AW ceiling for the year is S$102,000 - S$81,600 = S$20,400.
This matters because a large bonus paid in December can hit the AW ceiling if the employee has been near the OW ceiling all year. Getting this wrong either means you've over-contributed (cash refundable but time-consuming) or under-contributed (interest penalties).
How to calculate CPF for a monthly salary employee
- 1
Confirm the employee's age on the last day of the month.
This determines the rate row in the table above.
- 2
Calculate Ordinary Wages for the month.
Include basic salary + fixed allowances. Cap at S$6,800.
- 3
Multiply OW by the employer rate to get employer CPF.
E.g. S$4,000 x 17% = S$680.
- 4
Multiply OW by the employee rate to get employee CPF.
E.g. S$4,000 x 20% = S$800. Deduct this from gross pay.
- 5
Add any Additional Wages for the month.
Check against the AW ceiling before applying CPF to bonuses.
- 6
Submit both portions to CPF Board by the 14th of the next month.
Late submission attracts a late payment interest of 1.5% per month.
What changed in CPF rates from 2025 to 2026?
The biggest change in 2026 is the increase in the Ordinary Wage ceiling from S$6,300 to S$6,800 per month. This means employees earning between S$6,300 and S$6,800 now contribute CPF on the additional S$500 of monthly income. Employers in this salary band also pay additional CPF. The percentage rates themselves remain unchanged for most age groups.
The OW ceiling increase is part of Singapore's plan to raise the ceiling to S$8,000 by 2026, improving retirement savings for higher earners. If you have employees earning between S$6,300 and S$8,000 per month, review your payroll to confirm you've applied the S$6,800 ceiling from January 2026 onward.
The graduated CPF rates for workers aged 55 and above have also continued their multi-year step-up path. The Singapore government aims to bring senior worker rates closer to the under-55 rates by 2030 to support longer working lives. Check the CPF Board's website or ask your payroll provider to confirm the exact current rates if you're processing payroll for employees in the 55-70 age range.
How does CPF affect total employee cost for Singapore SMEs?
For an employee below 55 earning S$4,000/month, the employer's total cost is S$4,680 -- the S$4,000 salary plus S$680 in employer CPF. At S$6,800 (the ceiling), total cost reaches S$7,956. CPF isn't the only add-on: SDL (Skills Development Levy) at 0.25% of gross wages adds S$10-17/month per employee, and you'll need to factor in any FWL (Foreign Worker Levy) for non-resident employees.
Many SME owners underestimate employment costs because they anchor to the salary figure. The true cost of an employee includes employer CPF, SDL, any MOM-required benefits (paid annual leave, sick leave) and the time cost of payroll administration. Our employee cost calculator adds all of these up automatically.
If you're budgeting for a new hire or renegotiating a salary, run the numbers through the calculator first. It's free and takes about 90 seconds. For ongoing payroll -- including CPF submissions, IR8A filing and payslip generation -- our payroll service handles everything at a fixed monthly fee.
Frequently asked questions
What is the CPF contribution rate for 2026?
For employees below 55, the total rate is 37% (17% employer, 20% employee). For those aged 55 to 60 it's 28% (13% employer, 15% employee). The rate continues to reduce for older age bands down to 10% total for workers above 70.
What is the CPF Ordinary Wage ceiling in 2026?
S$6,800 per month from January 2026, up from S$6,300 in 2025. CPF is calculated only on the first S$6,800 of monthly salary. Earnings above this ceiling don't attract ordinary wage CPF contributions.
Do part-time employees have to pay CPF in Singapore?
Yes. CPF applies to all citizens and PRs earning more than S$50/month, including part-time workers. The same age-based rate table applies, calculated on actual wages earned. There's no special lower rate for part-time status.
What happens if an employer makes a wrong CPF contribution?
Underpayment attracts interest at 1.5% per month from the CPF Board, and the shortfall must still be made up. Persistent non-payment can lead to prosecution. Overpayment can usually be refunded but requires a formal application. Getting payroll right from the start is far easier than correcting it later.