By The Ledger desk · Last verified 3 October 2026
If you’re a Singapore citizen or permanent resident aged 55 or below, 20% of your monthly salary goes into CPF and your employer adds another 17% on top, for a total of 37%. Those rates apply to wages of up to S$8,000 a month, the Ordinary Wage ceiling from 1 January 2026. Above 55, the rates step down by age, though they’ve been rising each year for senior workers and will rise again in January 2027.
It’s the single biggest line on most payslips, so it’s worth knowing exactly how it’s worked out. Happily, it’s simpler than it looks.
Quick facts
- Age 55 and below: 20% from you, 17% from your employer, 37% in total.
- Ordinary Wage ceiling: S$8,000 a month from 2026 (up from S$7,400).
- Annual salary ceiling: S$102,000, including bonuses.
- Full rates apply to wages above S$750 a month; they phase in between S$50 and S$750.
- Employers must pay by the 14th of the following month.
- The extra contributions for workers aged above 55 to 65 go into the Retirement Account.
What are the rates in 2026?
| Employee’s age | Employer pays | Employee pays | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
These are the rates for Singapore citizens and for permanent residents from their third year of PR, on monthly wages above S$750. First- and second-year PRs contribute at lower graduated rates unless they and their employer agree to pay the full rates.
What does that look like on a payslip?
| Monthly salary (age 30) | You pay | Employer pays | Into your CPF | Your take-home |
|---|---|---|---|---|
| S$3,000 | S$600 | S$510 | S$1,110 | S$2,400 |
| S$5,000 | S$1,000 | S$850 | S$1,850 | S$4,000 |
| S$8,000 | S$1,600 | S$1,360 | S$2,960 | S$6,400 |
| S$12,000 | S$1,600 | S$1,360 | S$2,960 | S$10,400 |
Notice the last row: on a S$12,000 salary, CPF is only charged on the first S$8,000. Everything above the ceiling comes to you in cash. (Take-home here is before income tax and any other deductions.)
Where does the money go?
Your contribution is split across your accounts, and the split shifts with age. At 35 and below, the 37% is divided roughly 23% into the Ordinary Account, 6% into the Special Account and 8% into MediSave. As you get older, less goes to the OA and more goes to retirement and healthcare. From 55, contributions that would have gone to the SA go to your Retirement Account instead, until it reaches the Full Retirement Sum.
What about bonuses?
Bonuses and other irregular pay are called Additional Wages. They attract CPF too, but only until your total wages for the year hit the S$102,000 annual salary ceiling. In practice, the ceiling only bites for people earning well into six figures with big bonuses.
What changes in 2027?
The step-by-step increase for senior workers continues on 1 January 2027. The total rate for those above 55 to 60 rises to 35.5% (16.5% from the employer, 19% from the employee), and for those above 60 to 65 to 26% (13% each). Rates for those 55 and below, and above 65, don’t change.
The WahLiao Verdict
That 20% isn’t a tax: it’s your money, parked in your own name and earning 2.5% to 4%. The employer’s 17% is part of your pay, too, so compare job offers on total package, CPF included. And if you’re a freelancer with no employer, none of this happens automatically, so build your own habit of setting money aside.
Questions people ask
How do I check my employer has paid?
Log in to the CPF app or website and look at your transaction history. Contributions should appear each month; if they don’t, you can report it to the CPF Board.
Do foreigners pay CPF?
No. Employment Pass and S Pass holders don’t contribute; CPF is for citizens and permanent residents.
Do self-employed people pay CPF?
Self-employed people earning more than S$6,000 a year in net trade income must contribute to MediSave. Contributing to the other accounts is voluntary.
Do I get tax relief on my CPF?
Yes. Your compulsory employee contributions are deducted from your income before tax is worked out.
Sources: CPF Board on contribution rates for senior workers from 1 January 2026 and new rates for senior workers; Harvest Accounting on wage ceilings and wage bands; Smart Calculator on 2027 changes. The Ledger explains; it does not advise.
Read next: CPF Accounts Explained · Workfare Income Supplement · Back to The Ledger
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