CPF Contribution Rate 2026
Category: CPF | The Kopi Notes Singapore Investing Glossary | Updated Q1 2026
The CPF contribution rate is the percentage of an employee’s gross monthly wage that both the employee and employer must contribute to the Central Provident Fund (CPF). In 2026, combined rates range from 37% for employees aged 55 and below to 12.5% for those above 70, with the Ordinary Wage ceiling set at S$6,800/month.
This page is for informational purposes only and does not constitute financial advice. Always consult a licensed financial adviser before making investment decisions.
What Is the CPF Contribution Rate?
The CPF contribution rate determines how much of an employee’s gross monthly wages flows into the Central Provident Fund each month. Both employee and employer contribute — the employer’s share is an additional cost, while the employee’s share is deducted from take-home pay. Contributions are mandatory for Singapore citizens and Permanent Residents working in Singapore.
Contributions are split across three CPF accounts: Ordinary Account (OA), Special Account (SA), and MediSave Account (MA). Allocation ratios shift with age — younger workers see a larger OA portion for housing purchases and investments, while older workers see more routed to MediSave.
CPF Contribution Rates in 2026 by Age Group
As at 2026, CPF contribution rates for employees earning more than S$750/month:
| Age Group | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55–60 | 15% | 15% | 30% |
| Above 60–65 | 9.5% | 11.5% | 21% |
| Above 65–70 | 7% | 9% | 16% |
| Above 70 | 5% | 7.5% | 12.5% |
Source: CPF Board 2026. Applies to first S$6,800/month Ordinary Wage.
OA, SA, and MA Allocation Ratios
For employees 55 and below, the 37% total is allocated roughly as: OA 23%, SA 6%, MA 8% of gross wage. SA earns 4% p.a. — the highest guaranteed CPF interest rate. From age 55, the Retirement Account (RA) is created by drawing from OA and SA to meet the Full Retirement Sum (FRS). Allocation ratios are reviewed by CPF Board periodically — always verify at cpf.gov.sg.
Ordinary Wage Ceiling 2026
CPF contributions apply to Ordinary Wages up to S$6,800/month as at January 2026, increased from S$6,300 as part of a phased uplift. Bonuses and AWS are subject to the Annual Wage Ceiling: S$102,000 minus OW contributed that year. Wages above the OW ceiling are not subject to CPF contributions.
CPF Rates for Permanent Residents (PRs)
Newly approved PRs enjoy graduated rates: Year 1 — employee 5%, employer 4% (below age 55). Year 2 — employee 15%, employer 9%. From Year 3 onwards, full rates apply. PRs should factor graduated rates into take-home pay expectations during initial years of PR status.
Impact on Take-Home Pay
For an employee aged 35 earning S$5,000/month: employee CPF deduction is S$1,000 (20%), leaving S$4,000 take-home (before income tax). Employer contributes S$850 (17%) on top — total employment cost S$5,850. The S$1,850 combined CPF splits roughly: OA S$1,150, SA S$300, MA S$400.
CPF contributions are foundational to retirement planning. OA earns 2.5% p.a. and SA earns 4% p.a. See: CPF Investment Scheme (CPFIS) and CPF Retirement Sum Top-Up.
Frequently Asked Questions
What is the CPF contribution rate for 2026?
For employees aged 55 and below, the combined CPF rate is 37% — 20% employee and 17% employer. Rates decrease with age, reaching 12.5% combined for those above 70.
Does CPF contribution apply to all income?
Contributions apply to Ordinary Wages up to S$6,800/month. Bonuses are subject to the Annual Wage Ceiling of S$102,000 minus OW contributed. Income above these caps is not subject to CPF.
Do self-employed persons pay CPF?
Self-employed persons must contribute to MediSave but are not required to contribute to OA or SA. Voluntary contributions to OA and SA are permitted under the Voluntary Contribution scheme.
What changed in CPF rates for 2026?
The Ordinary Wage ceiling increased to S$6,800/month from January 2026. Contribution rate percentages for most age groups remained unchanged. Always check cpf.gov.sg for the latest updates.
How is CPF split between OA, SA, and MA?
For employees below 55: approximately OA 23%, SA 6%, MA 8% of gross wages out of the 37% total. SA earns 4% p.a. — the highest guaranteed CPF rate — making it the strongest compounding account for retirement.
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