Managing CPF (Central Provident Fund) contributions while ensuring compliance with legal regulations can be quite a daunting task. Even experienced HR professionals can find the intricate and time-sensitive procedures challenging.
But don't worry, Here’s everything you need to know about CPF; Singapore's mandatory social security system!
What is a CPF Contribution?
The Central Provident Fund (CPF) is a mandatory social security system in Singapore. It helps Citizens and Permanent Residents save money for retirement and other future needs. Other needs include healthcare funding, home ownership of HBD housing, family protection, and asset enhancement. All of these needs must be met throughout their lives.
Working Singaporeans and Permanent Residents (PRs) contribute a percentage of their monthly salary to the Central Provident Fund (CPF). In addition, their employers are required to make a contribution to the CPF in addition to the employees' normal salary.
Who Contributes to CPF?
- Employees: Singapore Citizens (SCs) and Permanent Residents (PRs) working in Singapore must contribute to CPF. Foreigners on a work pass, such as an Employment Pass, S Pass or Work Permit, do not contribute.
- Employers: Employers in Singapore are legally obligated to make CPF contributions for their eligible employees.
CPF Contribution Cap for 2026
There is an upper cap of CPF contribution rates for employees 55 years & below. The current maximum monthly ordinary wage amount that is subject to CPF payments is $8,000. Any additional wages (such as bonus payment) are CPF liable up to the value of $102,000 Annual Ordinary Wages. For example:
・Monthly wage $8,500: Only the first $8,000 of monthly income will be subject to CPF contributions.
・Annual bonus $10,000: Additional Wage Ceiling is $102,000 – ($8,000 x 12) = $6,000. Therefore only $6,000 of the $10,000 annual bonus is subject to CPF contributions, as the remaining $4,000 is above the Additional Wage Ceiling.
What's CPF Ordinary Wage Ceiling from 2023 to 2026?
CPF OW ceiling is being progressively raised from S$6,000 to S$8,000 by 2026 while annual salary ceiling remains the same.
Here's a quick heads-up for Singaporean employers: the monthly salary ceiling for CPF contributions is gradually increasing. This means you'll be contributing a bit more to your employees' CPF savings over the next few years. But fret not, the changes are being rolled out in phases to give everyone ample time to adjust.
- September 1, 2023: The ceiling rose from S$6,000 to S$6,300.
- January 1, 2024: It bumped up to S$6,800.
- January 1, 2025: The ceiling reached S$7,400.
- January 1, 2026: Finally, it will hit the new limit of S$8,000.
What changed in 2026
What's new in 2026: From 1 January 2026, the CPF Ordinary Wage ceiling rises to S$8,000/month (the final step of the 2023–2026 phased increase), and contribution rates increase for employees aged above 55 to 65. Rates for employees aged 55 and below remain at 37%. The CPF Annual Limit stays at S$37,740 and the Additional Wage ceiling remains S$102,000 − total OW subject to CPF.
The CPF Contribution Rate in Singapore 2026
CPF contribution rates for private sector and public sector non-pensionable employees who are:
- Singapore Citizens
- 3+years SPRs (Singapore Permanent Residents)
- First and Second Year SPRs who have jointly applied with employers to contribute at full employer-full employee rates
CPF Contribution Rate Table for Citizen and 3rd+ year SPR
CPF contribution Table for 1st and 2nd year SPR
CPF contributions are payable to foreign employees if they obtain Singapore Permanent Residency status. However, unless SPRs have jointly applied to contribute to CPF at the full employer/employee rate from the time they become permanent residents, they will contribute to their CPF fund at lower rates for the first two years after obtaining PR status. From the third year onwards, the employer and employee will contribute to CPF at the full employer/employee rates.
Contributed money from both employer and employee for Citizens and PRs gets split between three accounts in the employees CPF fund.
🔸 Ordinary Account: Primarily for retirement and housing needs.
🔸 Special Account: Primarily for retirement needs.
🔸 MediSave Account: Primarily for healthcare needs.
On a persons 55th birthday, a fourth account, the Retirement Account (RA), is automatically created.
CPF Contribution Allocation Rate from 1 January 2026
CPF allocation rates by age from 1 January 2026, for Singapore Citizens and Singapore Permanent Residents (3rd year onwards) who are private sector or public sector non-pensionable employees. Each total CPF contribution (employer and employee) is split across the CPF accounts using the ratios below: the MediSave Account is allocated first, then the Special Account (age 55 and below) or the Retirement Account (above 55), and the remainder goes to the Ordinary Account.
Employer CPF Responsibilities
As an employer in Singapore, you are responsible for the following:
- Registering your company with the CPF Board
- Identifying CPF-contributory employees
- Calculating and deducting CPF contributions from your employees' salaries according to the CPF contribution rates.
- Making your own employer CPF contributions on behalf of your eligible employees.
- Timely submission of CPF contributions to the CPF Board.
Automate CPF Calculations with Swingvy
Swingvy’s payroll platform was built for SMEs looking for payroll software that would simplify payment processing and make payday simple. Swingvy payroll software automates calculations of tax and CPF contribution along with other statutory contributions to ensure accuracy.
With a detailed payroll overview in the first step of payroll processing you can edit and update payroll calculations on the spot by expanding individual employee payroll lines to edit pay details directly.
Swingvy payroll is integrated with all major Singapore banks and IRAS, and compliant with MOM, certified by the Singapore Fintech Association and Monetary Authority of Singapore.
FAQ about CPF
What is the CPF Ordinary Wage ceiling in 2026?
From 1 January 2026, the CPF Ordinary Wage (OW) ceiling is S$8,000 per month, up from S$7,400 in 2025. Only the first S$8,000 of an employee's monthly wages is subject to CPF contributions. This is the final step of the phased increase that began in 2023.
Did CPF contribution rates change in 2026?
Yes. From 1 January 2026, rates increased for employees aged above 55 to 65 earning more than S$750/month. The total rate for those above 55 to 60 rose to 34% (16% employer, 18% employee), and for those above 60 to 65 to 25% (12.5% each). Rates for employees aged 55 and below (37%) and above 65 are unchanged.
How much CPF must an employer contribute in 2026?
For employees aged 55 and below earning above S$750/month, employers contribute 17% and employees 20% (37% total), on wages up to the S$8,000 OW ceiling. Older age bands have lower rates — see the table above.
What is the CPF Annual Limit for 2026?
The CPF Annual Limit remains S$37,740 in 2026 — the maximum total CPF contribution per employee per year. The Additional Wage ceiling stays at S$102,000 minus total Ordinary Wages subject to CPF for the year.
Where do the extra 2026 contributions go?
The additional contributions from the 2026 rate increase are credited to the employee's Retirement Account (RA), up to the Full Retirement Sum (FRS). Once the FRS is met, further contributions flow to the Ordinary Account (OA).
What are the Interest Rates on Money Held in CPF Funds?
Funds held by CPF earn the owner interest, which compounds over time, helping to grow retirement savings.
What Can CPF Funds Be Used for?
CPF funds are used for housing, medical care & coverage, retirement savings, ...etc. let's take a look!
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