CPF contributions

The rates as they stand

For employees aged 55 and below: 17% employer, 20% employee, 37% total. The senior bands rose on 1 January 2026 as part of the staged increases: above 55 to 60 now runs 16% employer and 18% employee, and above 60 to 65 runs 12.5% each; the above-65-to-70 band did not change in 2026. Further senior-band rises are already announced for 1 January 2027. The Ordinary Wage ceiling reached S$8,000 a month on 1 January 2026, the final step of the rise that started in 2023, with the annual salary ceiling holding at S$102,000.

What employers get wrong

Three recurring errors: missing that CPF applies to bonuses and most cash payments (subject to the Additional Wage ceiling), not just base salary; applying citizen rates to new permanent residents (graduated rates apply in the first two years unless both parties opt for full rates); and forgetting that foreigners on work passes get no CPF at all, but attract the Foreign Worker Levy for Work Permit and S Pass holders instead. The Skills Development Levy (0.25% of wages, small caps) applies to every employee, local and foreign, on top.

CPF against its peers

CPF's 17% employer rate makes Australia's 12% superannuation guarantee look modest and the UK's 3% auto-enrolment minimum look nominal, but the comparison is architectural, not just arithmetic: CPF funds housing and healthcare as well as retirement, and the employee's own 20% makes the total savings rate one of the highest anywhere. For regional workforce budgeting, the practical line is that a Singapore hire costs roughly 17% above salary before benefits, with the ceiling capping the effect for high earners.