CPF Contribution Rates Rise for Workers Aged 55–65 From January 2027
From 1 January 2027, employer and employee CPF contribution rates will rise for workers aged 55 to 65 — one of the concrete payroll changes to come out of Budget 2026.
What’s changing
- Ages 55–60: total CPF contribution rate rises by 1.5 percentage points.
- Ages 60–65: total CPF contribution rate rises by 1.0 percentage point.
- The full increase is directed into the employee’s CPF Retirement Account, up to their Full Retirement Sum (FRS).
What employers get in return
To soften the cost impact, the CPF Board will automatically provide employers with a CPF Transition Offset equal to half of the 2027 increase in employer CPF contributions. There is nothing to apply for — it’s applied automatically against the higher contributions.
No changes were announced to the CPF wage ceiling or to contribution age-bands outside the 55–65 range — this is specifically a senior-worker rate adjustment, not a broader payroll overhaul.
See the full breakdown in our Pay & CPF guide, or check your numbers with the CPF Calculator.