Key takeaways
- For employees aged 55 and below, total CPF is 37% of wages: 17% from the employer and 20% from the employee.
- The Ordinary Wage ceiling is $8,000 a month from 1 January 2026. The annual salary ceiling stays at $102,000.
- From 1 January 2027, rates rise for employees above 55 to 65. The government pays half the employer increase for 2027.
- CPF must be paid by the 14th of the following month. Late payment interest is 1.5% a month, with a $5 minimum.
CPF contribution rates from 1 January 2026
These rates apply to Singapore Citizens, and to Singapore Permanent Residents from their third year of PR status, earning more than $750 a month.
| Employee age | Employer | Employee | 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% |
Source: CPF Board
A new age band applies from the first day of the month after the employee's 55th, 60th, 65th or 70th birthday. Total CPF is rounded to the nearest dollar, and any cents are dropped from the employee's share.
Rates for lower wages
Lower-paid employees contribute less, so their take-home pay isn't squeezed. For an employee aged 55 and below:
| Total monthly wages | Employer pays | Employee pays |
|---|---|---|
| $50 or less | Nothing | Nothing |
| Above $50 to $500 | 17% of total wages | Nothing |
| Above $500 to $750 | 17% of total wages | 0.6 × (total wages − $500) |
Source: CPF Board
Older employees follow the same pattern with their own age-band rates. PRs in their first and second year pay lower, graduated rates, set out in separate CPF tables.
Wage ceilings: Ordinary and Additional Wages
CPF is only payable on wages up to a ceiling. The Ordinary Wage (OW) ceiling, which covers monthly salary, has risen step by step since 2023:
| Period | OW ceiling per month |
|---|---|
| Until 31 Aug 2023 | $6,000 |
| 1 Sep 2023 to 31 Dec 2023 | $6,300 |
| 2024 | $6,800 |
| 2025 | $7,400 |
| From 1 Jan 2026 | $8,000 |
Source: CPF Board
The annual salary ceiling is $102,000. The Additional Wage (AW) ceiling, which covers bonuses and other non-monthly payments, is $102,000 minus the total Ordinary Wages subject to CPF in that calendar year. It applies separately to each employee, for each employer.
CPF has said the OW ceiling will change again from 1 January 2027 but, at the time of writing, has not published the new figure. We'll update this guide when it does. HRKaki customers get the change applied automatically.
What changes on 1 January 2027
As announced in Budget 2026, CPF rates rise again for senior workers from 1 January 2027:
| Employee age | Employer | Employee | Total | Change in total |
|---|---|---|---|---|
| Above 55 to 60 | 16.5% | 19% | 35.5% | +1.5 points |
| Above 60 to 65 | 13% | 13% | 26% | +1 point |
Source: CPF Board
Rates for other age groups don't change. The increase goes to the employee's Retirement Account. To soften the cost, the government's CPF Transition Offset pays employers half of the 2027 increase in employer contributions. You don't need to apply for it.
Skills Development Levy (SDL)
SDL is separate from CPF but paid at the same time, for every employee working in Singapore, including foreigners.
- Rate: 0.25% of total monthly wages, on the first $4,500.
- Minimum $2 per employee (wages below $800). Maximum $11.25 per employee (wages above $4,500).
- CPF EZPay calculates SDL automatically for citizens and PRs, but you enter it yourself for foreign employees.
Self-help group funds
Employers deduct self-help group contributions from employees' wages and pay them through CPF:
- CDAC Fund: Chinese citizens and PRs
- ECF: Eurasian citizens and PRs
- MBMF: Muslim employees, including foreigners
- SINDA Fund: Indian-descent citizens, PRs and Employment Pass holders
Amounts depend on wages. Employees who want to opt out or change their contribution contact the self-help group directly, not their employer.
Payment deadline and late interest
CPF for a month is due at the end of that month, and must be paid by the 14th of the following month at the latest. After that, interest is charged at 1.5% a month (18% a year), worked out daily, with a minimum of $5. Submit through CPF EZPay and pay by eGIRO direct debit or PayNow QR. Paying by GIRO before the 14th is the simplest way to never pay interest.
A worked example
Siti is 35 and earns $5,000 a month in 2026. Her total CPF is 37% × $5,000 = $1,850. Her share is 20% × $5,000 = $1,000, deducted from her pay, and her employer pays the remaining $850. SDL on her wages is 0.25% × $4,500 = $11.25, paid by the employer. If Siti were Muslim, an MBMF contribution would also be deducted from her pay.
Now suppose Siti earned $9,000. Ordinary Wage CPF would be capped at the $8,000 ceiling, so total CPF would be 37% × $8,000 = $2,960.
HRKaki Payroll
HRKaki works out CPF, SDL and SHG funds for every employee and applies rate and ceiling changes for you.
Frequently asked questions
What is the CPF contribution rate for employers in 2026?
For employees aged 55 and below earning more than $750 a month, the employer rate is 17% and the employee rate is 20%, a total of 37%. Rates are lower for older employees.
What is the CPF Ordinary Wage ceiling in 2026?
$8,000 a month from 1 January 2026. The annual salary ceiling is $102,000.
When must employers pay CPF?
By the 14th of the following month. After that, late payment interest of 1.5% a month applies, with a minimum of $5.
Do employers pay CPF for foreign employees?
No CPF is payable for foreigners on work passes, but employers must still pay the Skills Development Levy for them.
Sources
Information sourced from
Figures and rules in this article come from the official sources listed below, checked on 13 October 2026. Avelogic is not affiliated with these agencies. For the authoritative and latest position, refer to the agency directly.
- CPF Board: How much CPF contributions to pay
- CPF Board: Changes to CPF rates for senior workers from 1 January 2027
- CPF Board: Budget 2026 updates
- CPF Board: Changes to CPF salary ceilings
- CPF Board: Late payment interest
- CPF Board: Skills Development Levy
- CPF Board: Contributions to self-help groups
This guide is general information based on official sources at the date shown, not legal or tax advice. Rules change, so check the CPF Board, IRAS, MOM or MOE for the latest position.