Everything We Need to Know about Singapore | CPF Contributions in 2026, Salary Ceiling, Bonuses and Take-Home Pay

CPF contributions in Singapore in 2026 affect how much an employee takes home, how much an employer must contribute and how salary and bonus payments build retirement, housing and healthcare savings. The rules can look complicated because the rate depends on age, citizenship or permanent-resident status, wage type and the applicable salary ceilings.

This guide explains how to calculate CPF contributions on monthly salary and annual bonus in 2026, what changed when the Ordinary Wage ceiling reached S$8,000, why the annual salary ceiling remains S$102,000, and how to read a payslip. It also explains the higher contribution rates for workers above 55 to 65 that took effect on 1 January 2026.

If you searched for CPF contribution rates 2026, employer CPF, employee CPF deduction, CPF on bonus, salary ceiling or take-home pay after CPF, start with the quick table below. It is for Singapore citizens and permanent residents from their third year of PR onwards, with monthly wages above S$750. First- and second-year PRs and lower-wage cases have different tables and should be checked separately.

Quick answer: standard CPF contribution rates from 1 January 2026

Employee’s age	Employer share	Employee share	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 CPF Board states that these standard rates apply to Singapore citizens and permanent residents from their third year of PR status onwards for the relevant monthly wage band. The contribution rates for some first- and second-year PRs can be lower by default, although employer and employee may jointly apply to contribute at higher rates where the rules permit.

Two salary ceilings matter: from 1 January 2026 the Ordinary Wage (OW) ceiling is S$8,000 per month. The CPF annual salary ceiling remains S$102,000 for the year. Additional Wages (AW), such as an annual bonus, use the remaining space under that annual ceiling.

What is CPF?

The Central Provident Fund is Singapore’s mandatory social-security savings system for eligible employees and employers. Contributions are credited to the member’s CPF accounts according to allocation rules. The main purposes include retirement savings, eligible housing uses and healthcare financing. CPF is not simply an income tax and it is not money that an employee can withdraw freely every month.

For working adults, CPF contributions are usually made by both the employer and employee. The employer pays both shares to CPF Board, but deducts the employee share from the employee’s wages. The employer share is an additional employment cost and should not be deducted from the employee’s stated gross salary as if it were the employee’s own contribution.

See the CPF Board’s CPF overview for how contributions are allocated among the Ordinary Account, MediSave Account and, where applicable, the retirement savings structure.

Why did CPF rates change for older workers in 2026?

From 1 January 2026, the total CPF contribution rates increased by 1.5 percentage points for employees aged above 55 to 65. The increase comprised 0.5 percentage point more from employers and 1 percentage point more from employees. The policy is intended to strengthen retirement adequacy for senior workers.

For employees above 55 to 60, the total rate moved from 32.5% in 2025 to 34% in 2026. For employees above 60 to 65, it moved from 23.5% to 25%. Rates for the other age groups in the standard table did not change under this particular 2026 adjustment.

Employers may qualify for the CPF Transition Offset for eligible older workers to help cushion the employer-side cost increase. That offset is a government support measure for qualifying employers; it does not reduce the employee’s CPF contribution or mean the employer can pay less CPF to the worker’s account.

What is the Ordinary Wage ceiling?

Ordinary Wages (OW) are wages due for employment in the month and payable by the 14th day of the following month. Monthly salary is the common example. The OW ceiling limits the amount of ordinary wages in each calendar month on which CPF contributions are calculated.

The ceiling reached S$8,000 per month on 1 January 2026, completing a staged increase from S$6,000. The successive ceilings were S$6,300 from September 2023, S$6,800 in 2024, S$7,400 in 2025 and S$8,000 in 2026.

The ceiling is not the maximum salary a person may earn. It is the maximum ordinary-wage amount per month used for CPF contribution calculation. An employee who earns S$10,000 of ordinary wages in a month does not have CPF calculated on the entire S$10,000 as ordinary wages; the monthly OW ceiling applies. Additional Wages are handled separately under the annual formula.

What is the annual salary ceiling?

The CPF annual salary ceiling is S$102,000. It places an annual limit on the amount of wages subject to CPF contributions when ordinary wages and additional wages are considered together. At the 2026 monthly OW ceiling of S$8,000, twelve months of ordinary wages can use the full S$96,000 of monthly-ceiling space if the employee earns at least S$8,000 in every month.

The annual ceiling is not S$8,000 multiplied by twelve in every case. It is S$102,000, which allows the additional-wage calculation to account for bonus or other additional wages within the annual limit. The difference between the annual ceiling and the year’s CPF-subject ordinary wages determines the maximum additional wages attracting CPF.

What are Additional Wages?

Additional Wages (AW) are wages that do not meet the definition of Ordinary Wages. Annual performance bonuses are a common example. Some commissions, leave encashment and other wage payments may be classified as OW or AW depending on when they are earned and payable and how they meet the CPF Board’s definitions. Do not label every irregular payment a bonus without checking the rules.

The AW ceiling is calculated as:

S$102,000 − total Ordinary Wages subject to CPF for the calendar year.

The ceiling is applied per employee, per employer and per calendar year. The available AW ceiling is therefore not a fixed amount for every employee. It depends on how much ordinary wage has already attracted CPF that year.

Example 1: employee earns S$5,000 per month

Assume a Singapore citizen aged 40, working for the full year, with monthly ordinary wages of S$5,000. At the standard 2026 rates, the employee share is 20%, or S$1,000 per month. The employer share is 17%, or S$850. Total CPF contributed for that month is S$1,850.

The employee’s take-home salary before other deductions is therefore S$4,000, because the employee share is deducted from gross wages. The employer’s S$850 share is additional to the S$5,000 gross salary, not a further deduction from the employee’s stated pay.

These figures assume the employee is in the standard rate category, earns above the relevant wage threshold and has no other payroll-specific adjustments. Actual CPF calculations are subject to CPF rounding and the contribution tables.

Example 2: employee earns S$9,000 per month

Assume the same 40-year-old citizen earns S$9,000 of ordinary wages each month in 2026. The OW ceiling is S$8,000, so CPF on ordinary wages is calculated on S$8,000, not S$9,000.

At 20%, the employee share is S$1,600 per month. At 17%, the employer share is S$1,360. Total monthly CPF on ordinary wages is S$2,960. The additional S$1,000 of monthly ordinary wages above the ceiling does not attract CPF as OW under the standard ceiling rule.

However, the employee’s actual salary remains S$9,000. The ceiling does not cap salary or take-home pay; it caps the amount of ordinary wages used for CPF computation. The annual AW ceiling calculation still needs to consider the year’s ordinary wages that were subject to CPF.

Example 3: annual bonus and the AW ceiling

Assume an employee earns S$7,000 every month throughout 2026. The monthly OW is below the S$8,000 ceiling, so the full S$7,000 is subject to CPF each month. Total ordinary wages subject to CPF for the year are S$84,000.

The AW ceiling is S$102,000 minus S$84,000, which equals S$18,000. If the employee receives an annual bonus of S$20,000, CPF contributions on AW generally apply only to the available S$18,000 ceiling, subject to the applicable contribution rate and other rules. The remaining S$2,000 is above the AW ceiling.

This is an illustration of the ceiling formula, not a statement about the precise CPF treatment of every bonus arrangement. The employer should classify the payment correctly and use the CPF Board’s AW calculator or detailed contribution tables.

Example 4: why a mid-year job change matters

The AW ceiling is calculated for each employee with each employer on a calendar-year basis. Suppose a worker changes jobs in July. The new employer’s contribution calculation is based on the wages payable by that employer and the information available under the CPF rules. Do not simply assume the new employer has access to all details of the former employer’s ordinary-wage contributions.

When an employee has multiple employers in one calendar year, the per-employer basis is important. The CPF Board’s calculator and guidance should be used for the actual payroll facts. Employees should keep payslips and bonus statements so that any query can be traced to the correct employer and period.

How much CPF does an employee pay at different ages?

The standard rates in the quick table are percentage rates for the relevant wage category. Age is generally determined as at the beginning of the year for CPF contribution purposes. The higher rates for older workers are not a penalty; they are part of the retirement-savings policy and are intended to increase retirement contributions as people approach retirement age.

For an employee aged 58 throughout the relevant calculation, the standard 2026 rate is 16% employer and 18% employee, for 34% total. For an employee aged 63, the standard rate is 12.5% employer and 12.5% employee, for 25% total. For a worker aged 68, it is 9% employer and 7.5% employee, for 16.5% total.

The worker’s age band should be checked carefully against CPF Board’s official tables, particularly when a birthday falls during a year. Do not use a simplified online calculator without confirming the age rule and citizenship/PR category.

What about employees earning S$750 or less?

The standard percentage table above assumes monthly wages above S$750. Lower wage bands have separate contribution formulas and thresholds. For example, CPF treatment can be different for total wages of S$50 or less, above S$50 up to S$500, and above S$500 up to S$750. A payroll calculation that applies 20% to every dollar of a low wage can therefore be incorrect.

Use CPF Board’s full 2026 contribution rate tables for the employee’s exact age and wage bracket. Employers should not use the simplified standard rate when the worker’s wage falls into one of the special lower-wage bands.

What if the employee is a Singapore Permanent Resident?

CPF contribution rates for permanent residents depend on the year of PR status and the applicable contribution option. From the third year onwards, standard citizen rates generally apply. In the first and second years, graduated rates may apply by default, with different employer and employee shares depending on the year and wage category.

CPF Board allows employer and employee to jointly apply for higher contributions where the rules permit. This is not an automatic election by one party alone. Check the current PR contribution tables and the effective date of PR status. An employee should tell payroll when their PR year changes so the correct contribution rate can be applied from the appropriate period.

What if I am not a Singapore citizen or permanent resident?

CPF generally does not apply to foreign employees who are not Singapore citizens or permanent residents. Work pass holders normally do not have compulsory CPF contributions on their Singapore employment wages. However, residency status can change and the relevant CPF rules then need to be considered.

Do not confuse a foreign employee’s income tax obligations or employer levy with CPF contributions. They are different systems with different eligibility and calculation rules. Check the Ministry of Manpower and CPF Board for the employee’s precise status.

How can I check my CPF contributions?

Employees can use CPF’s online services and statements to review contributions credited to their accounts. Check the contribution month, employer name, wage period and amount. CPF contributions are not necessarily reflected at the exact moment salary is paid, because employers submit them and CPF Board processes them under the due-date and posting arrangements.

Compare the CPF entry with the payslip and the wage amounts for the month. If a contribution is missing or appears too low, first ask the employer’s payroll or HR team for the calculation and payment reference. If the issue is not resolved, contact CPF Board through its official enquiry channel.

When must an employer pay CPF?

Employers are responsible for paying both the employer and employee CPF shares to CPF Board. The employee share may be deducted from wages, but the employer must remit the total contribution under the statutory schedule. The due date is generally the last day of the calendar month, with a grace period for payment by the 14th day of the following month. Late payment can attract enforcement action and interest under CPF rules.

Employers should use CPF Board’s payroll and submission services, retain wage records and ensure that the CPF amount corresponds to the actual employee and wage period. Do not assume a late payslip or delayed salary payment changes the CPF due-date rules for contributions already payable.

How should CPF appear on a payslip?

A clear payslip should allow the employee to understand gross wages, the employee CPF deduction and the net pay. The employer CPF share is not a deduction from the employee’s net cash salary, although some payroll statements show it as an informational employment contribution. Other deductions may include income tax arrangements, authorised payments or other lawful items. Ask payroll for an explanation if the payslip groups several items together.

For example, a monthly gross salary of S$5,000 with an employee CPF deduction of S$1,000 produces cash salary before other deductions of S$4,000. The employer contributes its S$850 share separately. It is misleading to describe the total CPF of S$1,850 as if the employee personally lost S$1,850 from a S$5,000 salary.

Does CPF apply to allowances, commission and leave pay?

Whether CPF is payable depends on whether the payment is wages under the CPF Act and whether it is classified as Ordinary or Additional Wages. The CPF Board lists examples such as monthly salary, allowances and overtime within the ordinary-wage analysis, while annual bonuses can be additional wages. Reimbursements of genuine employment expenses can be treated differently from salary-like payments.

Commissions and variable pay need careful classification. When they are paid, earned and payable can affect whether they are ordinary or additional wages. Use the CPF Board’s wage classification guide rather than assuming that every commission is treated the same way.

What changes are planned for 2027?

CPF Board has published a further increase in contribution rates for senior workers from 1 January 2027. The change is part of the planned phased increase to strengthen retirement adequacy. It does not change the standard 2026 rates shown in this article; it is a future-effective adjustment.

Employers and employees should check the CPF Board’s latest notice and payroll tables before processing January 2027 wages. The rate that applies depends on the employee’s age band and relevant status. Do not apply 2027 rates to wages paid in the 2026 calendar year merely because the change has been announced.

Common CPF calculation mistakes

Using the old S$7,400 monthly OW ceiling for 2026 instead of S$8,000.
Assuming S$8,000 is the annual salary ceiling rather than the monthly OW ceiling.
Forgetting the separate S$102,000 annual salary ceiling for AW calculations.
Calculating CPF on the full bonus without first computing the employee’s remaining AW ceiling.
Using the same rate for all age groups.
Using standard third-year PR rates for a first- or second-year PR without checking the correct table.
Deducting the employer CPF share from the employee’s gross salary.
Assuming every irregular payment is AW or every allowance is excluded.
Applying announced 2027 changes to 2026 payroll.

Frequently asked questions about CPF contributions in 2026

What is the CPF rate for an employee aged 55 and below in 2026?

For a Singapore citizen or third-year-and-beyond PR earning above S$750 monthly, the standard rate is 20% employee and 17% employer, or 37% total.

What is the CPF monthly salary ceiling in 2026?

The Ordinary Wage ceiling is S$8,000 per month from 1 January 2026.

What is the CPF annual salary ceiling?

It remains S$102,000. The Additional Wage ceiling is calculated by subtracting total ordinary wages subject to CPF for the year from S$102,000.

Does CPF apply to annual bonus?

CPF can apply to a bonus classified as Additional Wages, subject to the remaining AW ceiling and the relevant contribution rate.

How much CPF does my employer pay?

For a standard employee aged 55 and below in the relevant category, the employer share is 17% of wages subject to CPF, subject to the salary ceilings.

Is the employer’s CPF share deducted from my salary?

No. The employer share is an additional contribution. The employee share is deducted from wages and paid to CPF Board by the employer together with the employer share.

Why did CPF increase for workers aged 56 to 65 in 2026?

The total rates for workers above 55 to 65 rose by 1.5 percentage points from 1 January 2026 as part of the retirement adequacy measures.

Do first-year PRs pay the same CPF rate as citizens?

Not necessarily. First- and second-year PRs have graduated contribution rules and should use the relevant CPF table or approved higher-rate arrangement.

Do foreigners on an Employment Pass pay CPF?

Foreign employees who are not Singapore citizens or permanent residents generally do not make compulsory CPF contributions on their wages.

How do I calculate CPF on a bonus?

First compute the remaining AW ceiling: S$102,000 less the total ordinary wages subject to CPF for the calendar year. Apply the relevant contribution rules to the available AW amount.

When does an employer have to pay CPF?

CPF contributions are generally due by the last day of the month, with a grace period for payment by the 14th of the following month. Employers should follow CPF Board’s current payment instructions.

Official sources and related eduKateSG reading

Editorial review: 3 November 2026. The main rates table is for Singapore citizens and third-year-and-beyond permanent residents with monthly wages above S$750. Lower wage bands, first- and second-year PRs, multiple employers and special wage cases require the full CPF tables and calculators. Confirm with CPF Board before payroll action.

The useful conclusion

To understand CPF on a payslip, separate the employee share from the employer share, then separate Ordinary Wages from Additional Wages. Apply the 2026 S$8,000 monthly OW ceiling and the S$102,000 annual salary ceiling before calculating a bonus. Finally, check the employee’s age and residency category. Those steps explain most standard CPF calculations without confusing a salary deduction, an employer cost and the savings credited to the employee’s CPF accounts.