A Complete Guide to CPF Contribution Rates (2026)

CPF is something that most employees see in their payslips every month. However, not everyone knows how much they should contribute to CPF. You cannot determine CPF contribution simply by multiplying the salary by one percentage. 

The CPF contribution rate depends on multiple factors such as age, citizenship, resident status and monthly wages. There are also limits on how much salary is subjected to CPF contribution. 

Whether you are an employer handling the payrolls or an employee who wants to know your monthly deductions, this guide will give you a clear explanation on CPF contribution rates applicable in Singapore in 2026 

What is CPF? 

The central provident Fund or CPF is a mandatory social security savings system in Singapore. Both the employees and the employers make the CPF contribution based on the employee’s wages. This system helps areas such as healthcare, retirement and housing. 

CPF contributions generally apply to Singapore citizens or permanent residents residing in Singapore and earn more than S$50 as wages for one calendar month. Generally, foreign employees are exempt from CPF contributions. Businesses hiring foreign employees should also understand the applicable requirements in Singapore.

What is the CPF Contribution Rate? 

The CPF contribution rate is the percentage of your salary that you and your employer contribute to the CPF account. In simple terms, the CPF contribution rate shows what percentage of your salary goes into the CPF contribution. The contribution rate becomes lower for older age groups. 

How do Employee and Employer CPF Contributions Work? 

The CPF contribution is generally shared between employee and the employer. A portion of salary is deducted and that amount is paid into the CPF account. The employer also contributes a certain percentage on top of that, and the entire amount goes into the CPF account as savings for housing, retirement or healthcare. 

Assume your monthly salary is S$3,000 and the employee contribution rate is 20%, you contribute $600. If the employer’s contribution rate is 17%, your employer contributes S$510. So, the total contribution to the CPF account would be S$1110.

What is the CPF Salary Ceiling? 

The CPF contributions are not calculated on the entire salary. The maximum amount of salary on which the CPF contributions are calculated is called the salary ceiling. The monthly salary ceiling is different from the CPF annual salary ceiling. The current annual salary ceiling in Singapore is S$102,000.

What Are Ordinary Wages and Additional Wages? 

Understanding the difference between ordinary wages and additional wages becomes important while calculating the CPF contributions in Singapore. 

Ordinary wages are payments that employees receive regularly for the work that has been done during that month. The examples include, basic monthly salary, commissions paid regularly and allowances. 

Additional wages are payments that are not paid regularly every month. They are paid in addition to the regular salary. The examples include performance bonus, annual bonus, relocation bonus, leave pay and other lump-sum payments. 

How to Calculate CPF Contribution in 2026? 

The CPF contribution is the amount of money that you and your employer contribute to the CPF account every month and it can be calculated using the following steps. 

1. Find Your CPF-Covered Salary 

First, determine how much of your salary is subject to CPF contributions. In 2026, the ordinary wage ceiling is S$8,000 per month. This means the CPF contributions are calculated on the maximum salary of S$8,000 per month. 

For example, 

If, monthly salary = S$8,000, CPF is calculated on S$8,000 

Incase, it is S$5,000, CPF is calculated on S$5,000 

If, the salary is S$10,000, CPF is calculated on S$8,000 

2. Apply the CPF Contribution Rate 

After you know the salary amount subject to CPF, apply the employee and employer contribution rates. 

Assume the employee’s contribution rate is 20%. 

The employer’s contribution rate is 17%. 

3. Calculate Both Contributions 

If the CPF covered salary is S$8,000, 

Employee contribution: S$8,000 × 20% = S$1,600 

Employer contribution: S$8,000 × 17% = S$1,360 

Total CPF contribution = S$1,600 + S$1,360 = S$2,960 

In simple terms, you can remember it like this, 

CPF Contribution = CPF-Covered salary × Applicable contribution rate. 

When does the CPF Contribution Rate Change? 

The CPF contribution rate is not going to be the same for everyone, and it may vary depending on factors like age, citizenship, residential status, salary. Also, the CPF board may revise the rate from time to time. 

Specifically for the year 2026, there is a confirmed rate change coming in 2027. From 1^st January 2027, for employees aged above 55 to 65, the rates will increase again. 

Free CPF Calculator: CPF Contribution Calculator 

How Info-Tech Corporate Services Help Managing CPF and Payroll? 

Calculating CPF manually becomes difficult for companies when the number of employees increase especially when the employees fall into different age groups, residential statuses and salary ranges. 

Info-Tech Corporate Sec Payroll Outsourcing Services help businesses manage payroll along with statutory requirements such as CPF. 

Info-Tech Corporate Sec payroll organises processes at one place. This reduces the manual work including salary calculation, maintaining payroll records, preparing employee payslips and calculating CPF contributions. 

CPF Contribution Rate Singapore – FAQs