Take an employee aged 55 or below earning a monthly Ordinary Wage of S$6,000. This is below the S$8,000 Ordinary Wage ceiling, so the whole wage attracts CPF. The employee contributes 20 percent, which is S$1,200, deducted from the pay packet. The employer adds 17 percent on top, which is S$1,020, and this is not taken from salary. Together S$2,220 flows into the employee’s CPF accounts each month.
If the same person earned S$9,000 a month, CPF would still be charged only on the first S$8,000 because of the Ordinary Wage ceiling. The employee share would then be S$1,600 and the employer share S$1,360, a total of S$2,960, with the wage above S$8,000 attracting no CPF at all. The 37 percent combined rate shown here applies to younger workers; the rates step down in stages for employees above 55.
Item
Rate
Amount
Ordinary Wage
base
S$6,000
Employee share
20%
S$1,200
Employer share
17%
S$1,020
Total monthly CPF
37%
S$2,220
How it is calculated
CPF contributions are a percentage of wages up to a ceiling. For employees aged 55 and below the employee share is 20 percent and the employer share is 17 percent, a combined 37 percent. CPF applies only to Ordinary Wages up to the monthly ceiling, which rose in steps to S$8,000 from 1 January 2026, so wages above the ceiling attract no further CPF on the Ordinary Wage side. The tool multiplies the capped wage by each rate to show the employee deduction, the employer top up and the total inflow. Older age bands carry lower rates, and additional wages such as bonuses are subject to a separate annual ceiling. The combined contribution is split across the Ordinary, Special and MediSave accounts by age.
Frequently asked questions
What is the CPF Ordinary Wage ceiling?
CPF is only payable on Ordinary Wages up to a monthly ceiling. The ceiling rose in annual steps from S$6,000 to reach S$8,000 from 1 January 2026, where it is expected to remain for some years. Wages above the ceiling are not subject to CPF on the Ordinary Wage side, though a separate Annual Wage Supplement ceiling applies to bonuses and other additional wages.
What are the CPF contribution rates and do they change with age?
For employees aged 55 and below, the employee rate is 20% and the employer rate is 17%, giving a combined 37%. Rates step down in stages for older workers: the combined rate falls to 26% for those aged 55 to 60, then to 16.5% for ages 60 to 65, and further to 12.5% for ages 65 to 70. Workers above 70 have the lowest rates. The exact bands are published by CPF Board and updated periodically by IRAS and the Ministry of Manpower.
Which CPF accounts receive the monthly contributions?
Total monthly contributions are split across three accounts. The Ordinary Account (OA) can be used for housing, insurance, and education. The Special Account (SA) is ring-fenced for retirement and investment in retirement-focused funds. The MediSave Account (MA) covers approved medical expenses and MediShield Life premiums. The allocation ratios between accounts change at age 35, 45, 55, and 60, shifting progressively toward MediSave and the Retirement Account as workers approach retirement.
Are CPF contributions mandatory for all workers in Singapore?
CPF contributions are mandatory for Singapore citizens and permanent residents who are employees. They do not apply to foreigners on Employment Passes, S Passes, or work permits. Self-employed persons are required to contribute only to MediSave, not to the Ordinary or Special accounts, though they may make voluntary top-ups. Employers who fail to pay CPF on time face late payment interest charges and can be prosecuted under the CPF Act.