CPF Contribution Rates 2027: Employer Guide for SMEs

CPF contribution rates for Singapore Citizens and Singapore Permanent Residents (SPRs) from the third year of SPR status, on monthly wages above S$750, total 37% of wages for employees aged 55 and below (employer 17%, employee 20%), and that does not change in 2027. From 1 January 2027 the total rises for employees aged above 55 to 60 (from 34% to 35.5%) and above 60 to 65 (from 25% to 26%). CPF’s tables show no change for the other three age bands, and CPF says the graduated rates for first- and second-year SPRs do not change.

Checked against CPF Board, IRAS and MOM pages on 17 October 2026, this page sets out both sets of rates, the 2027 cost to an employer after the CPF Transition Offset, the payment deadlines and a December 2026 payroll checklist. For one employee’s contributions in a month, including a bonus, use our CPF contribution calculator, which runs on the same CPF tables; this page is the reference and planning guide behind it. It is general information from desk research, not payroll or legal advice: confirm each employee’s figures with CPF’s own contribution calculator. Recheck CPF’s rate page and its 2027 rate tables before the January 2027 payroll, and IRAS’s Transition Offset page before you finalise a 2027 staff-cost forecast.

What are the CPF contribution rates in 2026?

These are the rates CPF publishes for Singapore Citizens and SPRs from the third year of SPR status, on monthly wages above S$750, effective 1 January 2026. Each is a percentage of the employee’s wages, with Ordinary Wages counted up to the S$8,000 monthly ceiling.

• 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%

Lower wages follow different formulas. In CPF’s 2026 rate tables, wages above S$50 to S$500 attract only the employer’s share (for example 17% of total wages at age 55 or below), and wages above S$500 to S$750 are phased in. The same tables also cover SPRs in their first and second years, with graduated rates and, if CPF Board approves a joint application by the employer and employee, higher-rate options.

Do CPF contribution rates change on 1 January 2027?

Yes, for employees aged above 55 to 65. CPF’s announcement (page last updated 9 June 2026) says the rates rise from 1 January 2027 for employees in those two age bands, and that the changes apply to wages earned from 1 January 2027. The rates from that date, for monthly wages above S$750, are:

• 55 and below: unchanged. Employer 17%, employee 20%, total 37%.
• Above 55 to 60: employer 16.5% (up 0.5), employee 19% (up 1), total 35.5% (up 1.5).
• Above 60 to 65: employer 13% (up 0.5), employee 13% (up 0.5), total 26% (up 1).
• Above 65 to 70: unchanged. Employer 9%, employee 7.5%, total 16.5%.
• Above 70: unchanged. Employer 7.5%, employee 5%, total 12.5%.

CPF adds these details:

• The extra contributions for employees above 55 to 65 go fully into the Retirement Account, up to the Full Retirement Sum. If an employee has already set aside the Full Retirement Sum in the Retirement Account, they go to the Ordinary Account.
• Senior workers earning more than S$500 to S$750, who contribute at phased-in rates, see those rates rise proportionally, as CPF’s FAQ on the changes (updated 16 June 2026) also says.
• The graduated rates for first- and second-year SPRs do not change. Our comparison of the two PDFs shows one related difference: in the 2027 tables for first- and second-year SPRs on full employer and graduated employee rates (Tables 4 and 5, available on joint application), the employer’s share is 0.5 percentage points higher for the above 55 to 60 and above 60 to 65 bands, and the employee’s share is unchanged.

CPF’s 2027 rate tables give the full formulas. Comparing CPF’s 2026 and 2027 rate-table PDFs line by line (our check), the only figures that differ are in the above 55 to 60 and above 60 to 65 rows, and the Ordinary Wage ceiling in both is S$8,000. CPF’s Budget 2026 highlights (page last updated 5 March 2026) say the rise follows the recommendations of the Tripartite Workgroup on Older Workers. On the pages opened for this check, CPF had announced no other change to the rates for 2027. Budget statements can add changes, so recheck before payroll closes.

How much more will an employer pay from 2027?

Take two illustrative employees, each on a fixed S$4,000 a month with no additional wages. The percentages come from CPF; the arithmetic is ours.

• Aged 56: in 2026, total 34% is S$1,360 (employee 18%, S$720; employer S$640). In 2027, total 35.5% is S$1,420 (employee 19%, S$760; employer 16.5%, S$660). That is S$60 more a month: S$20 from the employer and S$40 from the employee, or S$240 and S$480 over twelve months.
• Aged 62: in 2026, total 25% is S$1,000 (S$500 each). In 2027, total 26% is S$1,040 (S$520 each). That is S$20 more a month for the employer and for the employee, or S$240 a year each.

At the Ordinary Wage ceiling the effect is capped. Subtracting the employee maximums from the maximum totals in CPF’s tables, our arithmetic puts the employer’s maximum on Ordinary Wages at S$1,280 a month in 2026 and S$1,320 in 2027 for above 55 to 60, and at S$1,000 and S$1,040 for above 60 to 65.

CPF’s Budget 2026 highlights say the Government will give employers a CPF Transition Offset equal to half of the 2027 increase in employer contributions, provided automatically so that employers need not apply. IRAS (page updated 13 October 2026) lists the 2027 offset as 0.25 percentage points for the above 55 to 60 and above 60 to 65 bands, which is half of the 0.5 point rise in the employer rate, calculated on wages paid up to the CPF salary ceiling. It says employers must have made timely CPF contributions for the employee, and the scheme covers local employees (Singapore Citizens and Permanent Residents) aged above 55 to 70. Wages paid to business owners, including a company’s shareholder-directors, do not qualify even when CPF is paid on them. On S$4,000 that is S$10 a month, so if the offset is paid in full the 56-year-old’s net extra employer cost would be about S$10 a month, or S$120 a year (our arithmetic).

The offset does not arrive monthly. IRAS says that for wages paid from January to June employers receive the payout in September of the same year, and for wages paid from July to December in March of the following year. Applied to 2027 (our inference), the higher contributions are paid first and the offset follows months later. IRAS’s page links a payout breakdown request and a CTO calculator.

Which rate applies when an employee turns 55, 60 or 65?

CPF says new rates apply from the first day of the month after the employee’s 55th, 60th, 65th or 70th birthday. Two illustrations:

• An employee who turns 60 on 20 December 2026 moves to the above 60 to 65 band from 1 January 2027, where the total rate is 26%, not the 25% in the 2026 table.
• An employee who turns 55 on 20 December 2026 moves to the above 55 to 60 band from 1 January 2027, where the total rate is 35.5% instead of 37%.

CPF’s guidance on who should receive contributions notes that different rates apply when an employee becomes a Singapore Citizen or SPR, and its tables vary by year of SPR status. Our suggestion: ask employees to tell you when their status changes.

When must CPF be paid, and what does the Skills Development Levy add?

CPF’s enforcement page (updated 5 August 2026) says the due date for CPF contributions is the last day of the calendar month, and that enforcement action is taken against employers who fail to pay by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday or public holiday). Late payment interest is 1.5% a month, starting from the day after the due date, with a minimum of S$5; the page’s own example is that for late January contributions, interest is calculated from 1 February. CPF may also impose a composition amount of up to S$1,000 per offence, and a first conviction can bring a court fine of S$1,000 to S$5,000 per offence, up to six months’ imprisonment, or both.

Our reading, not CPF’s wording: treat the last day of the month as the date to meet, since interest runs from the day after it; the 14th is when enforcement starts. The page does not say whether “paid” means submitted or received, so leave margin, and ask CPF Board if a specific case matters.

You pay through CPF EZPay by Direct Debit or PayNow QR. CPF’s payment-modes page (updated 28 August 2026) says a Direct Debit shows as “Paid” in EZPay after two working days, and that after an unsuccessful deduction CPF makes the deduction again seven calendar days after the first attempt and warns that an unsuccessful deduction may incur late payment interest. CPF’s rate page says to round the total contribution to the nearest dollar (50 cents and above counts as an extra dollar), to always drop the cents on the employee’s share, and that you are entitled to recover the employee’s share when paying the employee’s wages for the month.

The Skills Development Levy is separate. It is 0.25% of monthly total wages for every employee working in Singapore, including foreigners, with a minimum of S$2 (for employees earning under S$800) and a maximum of S$11.25 (for those earning over S$4,500). CPF’s page was last updated 2 July 2026.

What to do before the December 2026 payroll

1. List every Singapore Citizen and SPR employee with date of birth, citizenship status and, for SPRs, the date status began.
2. Mark who will be in the above 55 to 60 or above 60 to 65 band in January 2027, and who will cross a band during 2027 (a month-by-month sheet is enough).
3. Update the payroll software for wages earned from 1 January 2027, then check one payslip per age band against CPF’s contribution calculator.
4. Re-run the 2027 staff-cost forecast with the employer increase, less the expected offset, remembering that the offset is paid months later.
5. Tell affected employees that their deduction rises (1 percentage point for above 55 to 60, 0.5 for above 60 to 65) and where the extra contribution goes.
6. Confirm your Direct Debit or PayNow QR route works, and diarise payment for the last day of the month, with the 14th as the latest enforcement date.
7. After the first 2027 submission, compare the CPF amounts with your forecast and correct any errors early; the same payroll records feed year-end IR8A filing.

Employers with staff in the sectors covered by the Progressive Wage Model should read our employer checklist too. MOM’s retail-sector page (updated 1 September 2026) counts the basic wage, allowances and productivity incentive payments towards the gross wage for the wage floor and excludes bonuses and employer CPF contributions; check your own sector’s page. For the monthly routine, see our month-end close checklist and, for a first hire, the first-employee checklist. Dates ahead are in our SME compliance calendar, and more are in our operations guides.