Business
Singapore — Business: Payroll
For Citizens/PRs aged 55 and below, combined CPF contribution is capped by wage ceilings: OW (Ordinary Wage) ceiling rose to S$8,000/month from 1 January 2026 (up from S$7,400), with the annual salary ceiling (covering OW+AW) remaining S$102,000/year. Employer contribution is 17% (age ≤55); combined rates step down progressively for older workers — 34% total (16% employer/18% employee) for 55-60, 25% total (12.5%/12.5%) for 60-65, 16.5% total for 65-70, and 12.5% total above 70. Foreign employees on Employment Pass, S Pass, or Work Permit are excluded from CPF entirely — their payroll only involves income tax withholding (where applicable) and salary payment, no statutory contribution scheme.
VerifiedGovernment / official sourceCPF Board — CPF Contribution Rate Table (effective 1 January 2026)Last reviewed: 2026-07-20
Key facts
- OW (Ordinary Wage) ceiling: S$8,000/month from 1 January 2026 (up from S$7,400); annual salary ceiling remains S$102,000/year.
- Employer CPF contribution (age ≤55): 17%; rates step down for older age brackets (34% combined at 55-60 down to 12.5% combined above 70).
- Foreign employees on work passes are entirely excluded from CPF — no statutory contribution scheme applies to them.
- New PRs get a reduced CPF rate for their first 2 years as PR to smooth the transition.
Costs
- Employer CPF contribution (age ≤55): 17% of Ordinary Wage
Required documents
- CPF submission (for Citizen/PR employees)
- Payslips reflecting CPF deductions
Common mistakes
- Miscalculating CPF contributions using the pre-2026 S$7,400 OW ceiling instead of the updated S$8,000.