Quick Answer
Singapore employers must pay CPF contributions for every Singapore Citizen or Permanent Resident employee earning more than $50 a month in total wages. Combined employer and employee rates run up to 37% of wages for employees aged 55 and below, tapering down at older ages, calculated on wages up to the $8,000 Ordinary Wage ceiling. Contributions are due by the last day of the month the wages relate to, with enforcement action starting from the 14th of the following month.
Who You Must Pay CPF For
CPF applies to employees who are Singapore Citizens or Permanent Residents earning more than $50 a month in total wages — foreign employees on a work pass aren’t covered by CPF at all (they’re covered by the Skills Development Levy and, where relevant, the foreign worker levy instead; see our Work Pass Guide). For total wages between $50 and $500, only the employer’s share is payable — there’s no employee share in that band. Between $500 and $750, both shares are graduated upward. Full rates apply once total wages exceed $750 a month.
⚖️ CPF Board Requirement
You must pay CPF contributions for any Singapore Citizen or PR employee earning total wages of more than $50 a month — full-time, part-time, or casual. New Permanent Residents get graduated rates for their first two years of PR status (employer and employee can jointly elect between two graduated schemes), moving to full rates from the third year onward — check the current tables on cpf.gov.sg before running payroll for a newly-PR’d employee, since the exact graduated figures are revised periodically.
🏛️ Source: CPF Board — Who Should Receive CPF Contributions. Setting up your CPF Submission Number is covered in our hiring guide.
Contribution Rates by Age
For Singapore Citizens and PRs from their third year of PR status onward, earning total wages above $750, these are the current rates — effective 1 January 2026 — as a percentage of wages:
| Age Band | 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% |
These rates apply to both Ordinary Wages and Additional Wages, each subject to its own ceiling — covered next.
🏛️ Source: CPF Board — How Much CPF Contributions to Pay.
Registering Correctly vs Getting It Wrong
| ✅ Compliant | ❌ Non-Compliant |
|---|---|
| Register for a CPF Submission Number before your first payroll run | Wait until after the first pay day to sort out CPF registration |
| Calculate CPF on total wages, including fixed allowances, up to the OW ceiling | Calculate CPF on basic salary only, ignoring fixed allowances |
| Pay contributions by the last day of the month the wages relate to | Pay after the 14th of the following month and risk late payment interest |
The Ordinary Wage and Additional Wage Ceilings
Not every dollar of wages attracts CPF. The Ordinary Wage (OW) ceiling caps the amount of monthly ordinary wages — think basic salary and fixed monthly allowances — that CPF is calculated on, currently $8,000 a month, reaching that figure on 1 January 2026 as the final step of a phased increase from $6,300 in September 2023. Wages above $8,000 a month don’t attract further CPF.
Additional Wages — bonuses, and other payments not made monthly — have their own annual ceiling: $102,000 minus the employee’s total Ordinary Wages subject to CPF for the year. A high earner whose OW already uses up most of that $102,000 figure will have little or no AW ceiling left for CPF purposes on their bonus.
📅 Effective Date
The OW ceiling rose in phases: $6,300 (Sep 2023) → $6,800 (Jan 2024) → $7,400 (Jan 2025) → $8,000 (Jan 2026, final step). If you’re still budgeting payroll off an older ceiling figure, update it now.
🏛️ Source: CPF Board — Ordinary Wage Ceiling and CPF Board — Additional Wage Ceiling.
Where Contributions Go: OA, SA/RA and MediSave
Every contribution is split across an employee’s Ordinary Account (OA), Special Account (SA) — or Retirement Account (RA) from age 55, once the Special Account closes — and MediSave Account (MA). The split shifts with age, weighting more toward MediSave and retirement savings as employees get older:
| Age Band | Ordinary Account | Special/Retirement Account | MediSave Account |
|---|---|---|---|
| 35 and below | 23.0% | 6.0% (SA) | 8.0% |
| Above 35 to 45 | 21.0% | 7.0% (SA) | 9.0% |
| Above 45 to 50 | 19.0% | 8.0% (SA) | 10.0% |
| Above 50 to 55 | 15.0% | 11.5% (SA) | 10.5% |
| Above 55 to 60 | 12.0% | 11.5% (RA) | 10.5% |
| Above 60 to 65 | 3.5% | 11.0% (RA) | 10.5% |
| Above 65 to 70 | 1.0% | 5.0% (RA) | 10.5% |
| Above 70 | 1.0% | 1.0% (RA) | 10.5% |
Once an employee turns 55, their Special Account closes and new contributions that would have gone there flow into their Retirement Account instead, up to their Full Retirement Sum — after which any excess is redirected to the Ordinary Account.
Due Dates and Late Payment
CPF contributions are due by the last day of the calendar month the wages relate to. Payment reaching CPF Board by the 14th of the following month (or the next working day, if that falls on a weekend or public holiday) avoids enforcement action; pay later than that and you’re charged late payment interest at 1.5% a month from the day after the due date, with a minimum charge of $5. A $3,000 contribution paid 19 days late, for example, works out to roughly $28 in interest.
⚠️ Penalty Risk
Beyond late interest, CPF Board can offer a composition (out-of-court settlement) of up to $1,000 per offence once outstanding contributions and interest are paid in full. Criminal prosecution for non-payment carries a fine of $1,000–$5,000 per offence and/or up to 6 months’ imprisonment for a first conviction, rising to $2,000–$10,000 and/or up to 12 months for repeat offences — and company directors can be charged personally.
2027 Rate Changes for Senior Workers
From 1 January 2027, contribution rates rise again for two age bands: employees above 55 to 60 move from 34% total (16% employer / 18% employee) to 35.5% (16.5% / 19%), and employees above 60 to 65 move from 25% total (12.5% / 12.5%) to 26% (13% / 13%). Rates for employees 55 and below and above 65 are unchanged. The increase is fully directed to the Retirement Account up to the Full Retirement Sum, with any excess going to the Ordinary Account. CPF Board has also confirmed employers will receive some support toward the increased employer share for this age group — check cpf.gov.sg closer to the effective date for the exact offset mechanics.
Frequently Asked Questions
Do I need to pay CPF for a part-time or contract employee?
Yes, if they’re a Singapore Citizen or PR earning more than $50 a month in total wages — CPF doesn’t distinguish between full-time, part-time, or casual work for this purpose.
What’s the CPF contribution rate for an employee 55 and below?
37% of wages in total — 17% from the employer and 20% from the employee — for full-rate Singapore Citizens and PRs from their third year of PR status.
What is the CPF Ordinary Wage ceiling?
$8,000 a month, as of 1 January 2026 — the maximum monthly ordinary wage that attracts CPF contributions. It rose in phases from $6,300 in September 2023.
What happens if I pay CPF contributions late?
You’re charged late payment interest of 1.5% a month (minimum $5), and repeated or serious non-payment can lead to a composition of up to $1,000 per offence or criminal prosecution with fines and possible imprisonment.
Is there a minimum salary before CPF applies?
Yes — employees earning $50 or less a month in total wages don’t attract CPF. Between $50 and $500, only the employer pays; the employee share starts once total wages exceed $500.
Will CPF contribution rates change in 2027?
Yes, for employees above 55 to 65: the above-55-to-60 band rises from 34% to 35.5% total, and the above-60-to-65 band rises from 25% to 26% total, effective 1 January 2027. Other age bands are unchanged.
Do I need to pay full CPF for a new Permanent Resident in their first year?
No — new PRs get graduated rates for their first two years of PR status before moving to full rates from the third year. The exact graduated figures are revised periodically, so check the current tables on cpf.gov.sg when processing a newly-PR’d employee.
How is CPF split between the Ordinary, Special/Retirement, and MediSave accounts?
The split shifts by age, weighting more toward MediSave and retirement savings for older employees. For an employee 35 and below, for example, it’s roughly 23% of wages to the Ordinary Account, 6% to the Special Account, and 8% to MediSave.
Last verified: 10 September 2026
WorkRightSG provides general information only. Nothing on this site constitutes legal advice. For advice specific to your situation, consult a qualified employment lawyer or contact the Ministry of Manpower directly.