What are the CPF contribution rates for employees in 2026?

For Singapore Citizens and SPRs from the third year, on monthly wages above S$750, CPF lists: 55 and below 17% employer and 20% employee (37% total); above 55 to 60 16% and 18% (34%); above 60 to 65 12.5% and 12.5% (25%); above 65 to 70 9% and 7.5% (16.5%); above 70 7.5% and 5% (12.5%).

What is the CPF Ordinary Wage ceiling in 2026?

S$8,000 a month from 1 January 2026. CPF is not payable on Ordinary Wages above the ceiling. The annual wage ceiling of S$102,000 is unchanged, and the Additional Wage ceiling is S$102,000 less the total Ordinary Wages subject to CPF for the year.

Does an employee earning S$500 or less pay CPF?

No employee share is payable on total wages above S$50 and up to S$500 a month, but the employer still contributes, for example 17% of total wages for an employee aged 55 and below. On wages of S$50 or less no CPF is payable.

CPF's steps are: round the total contribution to the nearest dollar (under 50 cents down, 50 cents and above up), round the employee's share down to the dollar, and take the employer's share as the total less the employee's share.

Do new Singapore PRs pay the full CPF rate?

Not by default. In the first and second year of SPR status, graduated rates apply, for example 9% total (5% employee) in the first year for ages 55 and below on wages above S$750. The employer and employee can jointly apply to CPF to contribute at higher rates.

How do you calculate CPF contributions for a new employee in Singapore?

The first payroll for a new hire is where CPF errors start, and they repeat every month until someone checks. The calculation itself is short: pick the right rate table, cap the Ordinary Wages, apply the rate and round the way CPF does. Here are the 2026 rules and five worked examples you can check your payroll against.

The rule stated plainly

1. Pick the rate table

Singapore Citizens and SPRs from the third year of SPR status use CPF's Table 1. SPRs in the first two years of SPR status use graduated rates unless they and the employer have jointly applied to CPF for higher rates. For wages above S$750 a month, Table 1 rates from 1 January 2026 are:

Employee's 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%

The age band changes from the first day of the month after the month of the 55th, 60th, 65th or 70th birthday. CPF's example: a 55th birthday on 13 January 2026 keeps the 37% rate for January wages and moves to 34% from February.

2. Split Ordinary and Additional Wages

Ordinary Wages (OW) are wages for employment in the month that are payable by the 14th of the following month, such as monthly salary. Additional Wages (AW) are everything else, such as an annual performance bonus. CPF is payable on OW up to the OW ceiling of S$8,000 a month from 1 January 2026. AW is subject to CPF up to the AW ceiling:

AW ceiling = S$102,000 less total OW subject to CPF for the year

3. Check the low wage bands

For total wages (TW) of S$50 or less, no CPF is payable. Above S$50 to S$500, only the employer contributes. Above S$500 to S$750, the employee share is phased in. For age 55 and below the formulas are:

TW above S$50 to S$500:  total = 17% × TW, employee nil
TW above S$500 to S$750: total = 17% × TW + 0.6 × (TW less S$500), employee = 0.6 × (TW less S$500)

4. Round the CPF way

Round the total contribution to the nearest dollar: under 50 cents down, 50 cents and above up.
Round the employee's share down to the nearest dollar.
Employer's share = total contribution less employee's share.

Separately, the Skills Development Levy (SDL) is 0.25% of the employee's monthly total wages, with a minimum of S$2 for an employee earning less than S$800 a month and a maximum of S$11.25 for one earning more than S$4,500. It applies to all employees working in Singapore, including foreign employees.

Worked examples for new hires

All five employees joined in 2026 and receive only Ordinary Wages in the month shown. The first four are Singapore Citizens aged 30. The fifth is an SPR aged 30 in the first year of SPR status on CPF's default graduated rates (5% employee and 9% total above S$750).

New hire	Working	Total CPF	Employee	Employer
Full month, OW S$5,000	37% × 5,000 = 1,850.00; 20% × 5,000 = 1,000.00	S$1,850	S$1,000	S$850
Joined mid-month, first month's pay S$2,350	37% × 2,350 = 869.50, rounds up to 870; 20% × 2,350 = 470.00	S$870	S$470	S$400
Part-timer, TW S$650	17% × 650 = 110.50, plus 0.6 × 150 = 90.00, total 200.50, rounds up to 201; employee 0.6 × 150 = 90	S$201	S$90	S$111
Senior hire, OW S$9,200	OW capped at 8,000. 37% × 8,000 = 2,960; 20% × 8,000 = 1,600	S$2,960	S$1,600	S$1,360
SPR 1st year, OW S$5,000	9% × 5,000 = 450.00; 5% × 5,000 = 250.00	S$450	S$250	S$200

SDL on the same employees: S$11.25 on S$5,000 and on S$9,200 (the maximum), S$5.875 on S$2,350, the S$2 minimum on S$650, and S$11.25 on the SPR. CPF adds up the SDL for all employees and rounds the total down to the nearest dollar.

Common mistakes

Using last year's ceiling or rates

The OW ceiling rose to S$8,000 on 1 January 2026, and the rates for the above 55 to 60 and above 60 to 65 bands rose by 1.5 points. A payroll template set up in 2025 will under-contribute for senior hires and high earners.

Rounding the employee share to the nearest dollar

Only the total is rounded to the nearest dollar. The employee share is always rounded down, and the employer takes up the difference. In the mid-month example the total of 869.50 rounds up to 870, so the employer pays S$400 rather than S$399.50.

Putting a new SPR on Table 1 by default

Full rates for a first or second year SPR apply only after CPF approves a joint application. Ask the employee for the date SPR status was granted and which rates CPF has on record.

Missing the band change in the joining year

A new hire who turns 55 in, say, May moves to the lower rate from June wages. Set the date in payroll on the first day so the change is not missed.

Ignoring the AW ceiling on a first bonus

The AW ceiling depends on the OW subject to CPF for the year. Estimate it when the bonus is paid and check it again on the actual figures at the year end.

How the free kit does it

The free SG CPF Contribution Checker Kit takes the employee's citizenship or SPR year, date of birth, monthly OW and any AW, and works out the age band, OW ceiling, AW ceiling, low wage bands, employer and employee shares with CPF's rounding, and the SDL. It shows the working line by line, flags an age band change and AW above the ceiling, and includes a Python checker and a browser calculator that reproduce CPF's own worked examples.

This article is general reference material for Singapore employers and not tax or legal advice. Rates are for wages from 1 January 2026; check cpf.gov.sg or the CPF contribution calculator before relying on any figure.