If you run a small or medium-sized business in Singapore, getting CPF (Central Provident Fund) contributions right is non-negotiable. Errors lead to penalties, back-payments, and strained employee trust. This guide covers everything you need to know about CPF contribution rates in 2026 — including age-band tables, wage ceilings, worked examples, and the most common mistakes SMEs make.
Quick Tip
Use our free CPF Calculator to instantly compute employer and employee CPF for any salary and age band.
What Is CPF and Why It Matters for Employers
The Central Provident Fund is Singapore's mandatory social security savings scheme. Both employers and employees contribute a percentage of the employee's monthly wages. As an employer, you're legally responsible for:
- Computing and deducting the employee's share from their salary
- Paying both the employer's share and employee's share to CPF Board by the 14th of the following month
- Filing accurate CPF submissions for every employee earning more than SGD 50/month
Late or incorrect payments attract a 1.5% monthly interest penalty (minimum SGD 5) — and persistent non-compliance can lead to prosecution.
CPF Contribution Rates 2026 — Full Table by Age Band
CPF rates depend on the employee's age and citizenship/residency status. Below are the rates for Singapore Citizens and 3rd-year-and-above Permanent Residentsearning monthly wages above SGD 750.
| Age Band | Employee Rate | Employer Rate | Total Rate |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 | 16% | 15% | 31% |
| Above 60 to 65 | 10.5% | 11.5% | 22% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
For 1st-year and 2nd-year SPRs, graduated (lower) rates apply. Check the CPF Board website or use our payroll calculator which handles SPR rate tiers automatically.
Employees Earning Below SGD 750
If an employee earns SGD 50 to SGD 500, only the employer contributes (17% for age 55 and below). The employee pays nothing. For wages between SGD 500 and SGD 750, the employee's contribution is graduated (starting from 0.6 × total wage minus SGD 500).
Ordinary Wage Ceiling and Additional Wage Ceiling
CPF contributions are subject to two caps:
- Ordinary Wage (OW) Ceiling: SGD 7,400 per month (as of Jan 2026). CPF is only computed on the first SGD 7,400 of monthly ordinary wages. The OW Ceiling is scheduled to increase to SGD 8,000 by 2026 under phased adjustments — always confirm the latest figure with CPF Board.
- Additional Wage (AW) Ceiling: SGD 102,000 minus total ordinary wages subject to CPF for the year. Additional wages include bonuses, commissions, and ad-hoc payments.
The AW ceiling ensures that total CPF-liable wages per year don't exceed SGD 102,000. This annual limit catches cases where employees receive large bonuses.
Worked Examples: CPF Calculations for Different Salary Levels
Example 1: Employee Age 30, Monthly Salary SGD 4,000
Ordinary Wages: SGD 4,000 (below OW ceiling)
Employee CPF (20%): SGD 4,000 × 0.20 = SGD 800
Employer CPF (17%): SGD 4,000 × 0.17 = SGD 680
Total CPF contribution: SGD 1,480
Employee take-home: SGD 4,000 − SGD 800 = SGD 3,200
Total employer cost: SGD 4,000 + SGD 680 = SGD 4,680
Example 2: Employee Age 30, Monthly Salary SGD 10,000
Ordinary Wages: SGD 10,000 (exceeds OW ceiling of SGD 7,400)
CPF-liable OW: SGD 7,400
Employee CPF (20%): SGD 7,400 × 0.20 = SGD 1,480
Employer CPF (17%): SGD 7,400 × 0.17 = SGD 1,258
Total CPF contribution: SGD 2,738
Employee take-home: SGD 10,000 − SGD 1,480 = SGD 8,520
Total employer cost: SGD 10,000 + SGD 1,258 = SGD 11,258
Notice how the employee earning SGD 10,000 only has CPF computed on the first SGD 7,400. The remaining SGD 2,600 is not subject to CPF ordinary wage contributions.
Example 3: Employee Age 58, Monthly Salary SGD 5,000
Age band: Above 55 to 60
Employee CPF (16%): SGD 5,000 × 0.16 = SGD 800
Employer CPF (15%): SGD 5,000 × 0.15 = SGD 750
Total CPF contribution: SGD 1,550
Example 4: Bonus Payment (Additional Wages)
Employee age 30, monthly OW: SGD 6,000
Annual OW subject to CPF: SGD 6,000 × 12 = SGD 72,000
AW ceiling: SGD 102,000 − SGD 72,000 = SGD 30,000
13th-month bonus: SGD 6,000 (within AW ceiling — full CPF applies)
Employee CPF on bonus: SGD 6,000 × 0.20 = SGD 1,200
Employer CPF on bonus: SGD 6,000 × 0.17 = SGD 1,020
Common CPF Mistakes SMEs Make (and How to Avoid Them)
1. Missing the Monthly Deadline
CPF contributions are due by the 14th of the following month. Late payments incur a 1.5% monthly interest charge. Set up GIRO or automated payroll to avoid this.
2. Forgetting Age-Band Transitions
When an employee turns 56, 61, 66, or 71, their CPF rate changes in the month following their birthday. Many SMEs using manual spreadsheets forget to update the rate, leading to over- or under-deductions that require rectification.
3. Ignoring the OW Ceiling
Employers sometimes compute CPF on the full salary even above the SGD 7,400 ceiling. This means you're over-contributing — and while the excess can be refunded, the process creates unnecessary admin work.
4. Miscalculating AW Ceiling for Mid-Year Joiners
The AW ceiling is based on actual OW subject to CPF for that employer in the year. For employees who join mid-year, you only count the OW months they worked for you, which raises their AW ceiling. Getting this wrong often results in under-contributions.
5. Not Updating Rates for SPR Employees
Singapore Permanent Residents follow graduated CPF rates in their 1st and 2nd year. After the 2nd year, they move to full rates. Many SMEs forget to upgrade the rate, keeping them on the lower graduated schedule longer than required.
6. Treating All Payments as OW
Commission payments, overtime, and allowances paid monthly are Ordinary Wages. But lump-sum payments like annual bonuses and back-pay are Additional Wages. Treating them all the same can lead to incorrect ceiling calculations.
How CPF Is Allocated Across the Three Accounts
CPF contributions are split into three accounts — Ordinary Account (OA), Special Account (SA), and MediSave Account (MA). The allocation ratio varies by age:
| Age Band | OA | SA | MA |
|---|---|---|---|
| 35 and below | 23% | 6% | 8% |
| Above 35 to 45 | 21% | 7% | 9% |
| Above 45 to 50 | 19% | 8% | 10% |
| Above 50 to 55 | 15% | 11.5% | 10.5% |
| Above 55 to 60 | 12% | 3.5% | 10.5% |
| Above 60 to 65 | 3.5% | 2.5% | 10.5% |
| Above 65 to 70 | 1% | 1% | 10.5% |
| Above 70 | 1% | 1% | 10.5% |
As an employer, you don't need to split the payments yourself — CPF Board does this automatically. But understanding the allocation helps when employees ask where their money goes.
Key Employer Obligations and Filing Requirements
- Monthly CPF submission: Submit via CPF EZPay, CPF e-Submit, or your payroll software by the 14th of the following month.
- GIRO payment: Set up GIRO for automatic deductions — this is the easiest way to avoid late payment penalties.
- New employee registration: Submit the new employee's CPF details within 14 days of their start date.
- Year-end reconciliation: Review total OW and AW subject to CPF per employee to ensure the annual SGD 102,000 ceiling is applied correctly.
- Record keeping: Maintain payroll records for at least 2 years (5 years recommended).
Simplify CPF Calculations with Payroll Software
Manual CPF calculation is error-prone, especially when you factor in age-band transitions, wage ceilings, SPR graduated rates, and additional wage computations. Even a single mistake can cascade across months.
That's exactly why we built KerjaPay. Our payroll engine automatically:
- Applies the correct CPF rate based on employee age, citizenship, and SPR year
- Enforces OW and AW ceilings with real-time validation
- Generates CPF submission files compatible with CPF Board's e-Submit
- Sends deadline reminders so you never miss the 14th
- Handles mid-year joiners, leavers, and age-band transitions automatically
Stop worrying about CPF calculations
KerjaPay handles CPF, SDL, and all Singapore statutory contributions automatically. Plans start from SGD 8/month for up to 10 employees.
Try KerjaPay free for 14 daysFrequently Asked Questions
Do I need to pay CPF for part-time employees?
Yes. CPF applies to all employees (Singapore Citizens and PRs) earning more than SGD 50/month, regardless of whether they are full-time or part-time.
What about foreign employees on work permits or S Passes?
Foreign employees are not required to contribute to CPF. However, employers must pay the Foreign Worker Levy (FWL) and Skills Development Levy (SDL) for them.
When does the new rate apply after an employee's birthday?
The new rate takes effect from the month following the employee's birthday month. For example, if an employee turns 56 in March, the above-55 rates apply from April onwards.
Can I use payroll software to submit CPF directly?
Yes. Approved payroll software (including KerjaPay) can generate CPF submission files that you upload to CPF Board's e-Submit system, or submit directly via API integration.
Last updated: March 2026. This guide is for informational purposes. Always verify rates with the CPF Board website for the latest official figures.