PAYROLL & CPF GUIDE · UPDATED AUGUST 2026
CPF contribution rates in 2026 — including the tables for new PRs
Most CPF questions employers ask come down to three tables: the full rates by age band, and the two graduated tables for an employee’s first and second year as a Permanent Resident. Get the wrong table — which usually means running a new PR on citizen rates — and every payslip after that is wrong in both directions. Here are all three, plus the ceilings and the 2027 changes.
FULL RATES 2026
Singapore Citizens and third-year-onwards PRs.
Rates change on the first day of the month after an employee’s 55th, 60th, 65th or 70th birthday — a mid-year birthday moves the band mid-year, not at the next January.
Full CPF rates from 1 January 2026 — monthly wages above S$750
55 and below
Employer: 17%
Employee: 20%
Total: 37%
Above 55 to 60
Employer: 16%
Employee: 18%
Total: 34%
Above 60 to 65
Employer: 12.5%
Employee: 12.5%
Total: 25%
Above 65 to 70
Employer: 9%
Employee: 7.5%
Total: 16.5%
Above 70
Employer: 7.5%
Employee: 5%
Total: 12.5%
NEW PR RATES
First- and second-year PRs are on graduated rates by default.
These graduated employer, graduated employee (G/G) tables have not changed since 2016 — what changes is which table an employee is on, and payroll has to move them twice before full rates apply in year three.
First-year PR — graduated (G/G) rates, monthly wages above S$750
55 and below
Employer: 4%
Employee: 5%
Total: 9%
Above 55 to 60
Employer: 4%
Employee: 5%
Total: 9%
Above 60 to 65
Employer: 3.5%
Employee: 5%
Total: 8.5%
Above 65
Employer: 3.5%
Employee: 5%
Total: 8.5%
Second-year PR — graduated (G/G) rates, monthly wages above S$750
55 and below
Employer: 9%
Employee: 15%
Total: 24%
Above 55 to 60
Employer: 6%
Employee: 12.5%
Total: 18.5%
Above 60 to 65
Employer: 3.5%
Employee: 7.5%
Total: 11%
Above 65
Employer: 3.5%
Employee: 5%
Total: 8.5%
THE PR CLOCK
How the PR years actually run.
The clock starts on the Entry Permit date
The first year of PR status runs from the date on the ICA Entry Permit to the last day of the month of the first anniversary. The second year runs to the last day of the month of the second anniversary, and full rates apply from the first day of the month after that.
The conversion month is pro-rated
In the month an employee becomes a PR, CPF applies only to wages from the conversion date to month-end. Bonuses attract CPF only if payable on or after the conversion date.
Graduated rates are the default, not a choice you make silently
Unless a joint application says otherwise, a new PR is on graduated employer and graduated employee (G/G) rates — unchanged since 2016. Payroll software set to citizen rates for a first-year PR over-deducts from the employee and overpays the employer share.
You can pay more — jointly
Employer and employee can jointly apply to CPF Board for full rates on both sides, or full employer with graduated employee rates. Applications are processed within about 7 working days, and the higher rates apply once approved — not retroactively to past months.
CEILINGS & THRESHOLDS
The limits that shape every payslip.
Ordinary Wage ceiling: S$8,000 a month
CPF applies to the first S$8,000 of ordinary wages each month from 1 January 2026. For an employee aged 55 and below on full rates, that caps total CPF at S$2,960 a month.
Additional Wage ceiling: S$102,000 minus OW
Bonuses and other additional wages attract CPF up to S$102,000 minus the year's ordinary wages subject to CPF — computed per employer, per calendar year.
Below S$750, the employee share phases in
No CPF below total wages of S$50. From above S$50 to S$500 only the employer share is payable; from above S$500 to S$750 the employee share phases in by formula. The employer share is never phased.
Voluntary top-ups hit the Annual Limit
The CPF Annual Limit is S$37,740 per employee per year across mandatory and voluntary contributions — the ceiling that matters if you pay voluntary CPF on top of wages.
FROM 1 JANUARY 2027
The next step-up is already scheduled.
Only the two senior-worker bands move; other bands and the PR graduated tables are unchanged. The increase goes to the Retirement Account, and payroll settings need updating before the January 2027 run.
Age band
2026 (employer + employee)
From 2027
Above 55 to 60
16% + 18% = 34%
16.5% + 19% = 35.5%
Above 60 to 65
12.5% + 12.5% = 25%
13% + 13% = 26%
Common questions.
What are the CPF contribution rates for 2026?
For Singapore Citizens and third-year-onwards PRs earning more than S$750 a month: 37% total for employees aged 55 and below (17% employer, 20% employee), 34% for above 55 to 60, 25% for above 60 to 65, 16.5% for above 65 to 70, and 12.5% above 70. Ordinary wages are capped at S$8,000 a month.
What CPF do I pay for a first-year PR?
On the default graduated (G/G) rates for wages above S$750: 9% total (4% employer, 5% employee) for employees aged 55 and below or above 55 to 60, and 8.5% total (3.5% employer, 5% employee) above 60. Higher rates apply only if you and the employee jointly apply for them.
When does a PR move to full CPF rates?
From the first day of the month after the second anniversary of obtaining PR status. The first year runs from the Entry Permit date to the end of the first-anniversary month; the second year ends with the second-anniversary month.
Can we just pay a new PR full CPF rates from day one?
Yes, but only via a joint application by employer and employee to CPF Board — either full rates for both shares, or full employer share with a graduated employee share. Until it is approved, the graduated rates apply.
Do CPF rates change again in 2027?
Yes. From 1 January 2027, total rates for senior workers rise: above 55 to 60 goes from 34% to 35.5% (16.5% employer, 19% employee), and above 60 to 65 from 25% to 26% (13% each). Other bands and the PR graduated rates are unchanged — update payroll settings before the January 2027 run.
When are CPF contributions due?
On the last day of each calendar month, with enforcement action possible if payment is not made by the 14th of the following month (or the next working day). Late payment interest accrues at 1.5% per month from the day after the due date, subject to a minimum of S$5.
Official sources
All rates and ceilings are from CPF Board’s published tables effective 1 January 2026, checked on 23 August 2026.
This guide provides general information, not payroll or legal advice. Rates shown are the private-sector tables for monthly wages above S$750; different formulas apply between S$50 and S$750, and public-sector pensionable employees have separate tables. CPF rules and rates change — check current CPFB tables before relying on a figure.
WRITTEN BY
Jacqueline May
Principal Accountant · Chartered Accountant (Singapore), ISCA member
Jacqueline is a Chartered Accountant (Singapore) and ISCA member, and the Principal Accountant at Synergy Accounting, a Singapore practice established in 2013. She works on corporate tax, GST and ACRA compliance for small and medium businesses — the filings, deadlines and judgement calls most owners would rather hand over. These guides are written from what she sees in practice.