Quick answer
For Singapore Citizens and Singapore Permanent Residents from the third year onwards, employees aged 55 and below generally contribute 20% of eligible monthly wages to CPF, while employers contribute 17%. CPF is subject to wage ceilings, so CPF is not always calculated on the full salary if the salary is above the applicable ceiling.
What is CPF?
CPF stands for Central Provident Fund. It is Singapore’s social security savings system for eligible employees. CPF contributions are usually made by both the employee and the employer. The employee’s CPF contribution is deducted from gross salary, while the employer’s CPF contribution is paid on top of salary.
Employee CPF
This is deducted from your gross salary and credited into your CPF accounts. It reduces your monthly cash take-home pay.
Employer CPF
This is contributed separately by your employer. It is part of your employment cost, but it is not deducted from your salary.
CPF wage ceiling
CPF contributions are subject to wage ceilings. For 2026, the Ordinary Wage ceiling is S$8,000 per month.
CPF contribution rates from 1 January 2026
The table below summarises the CPF contribution rates for Singapore Citizens and Singapore Permanent Residents from the third year onwards, where monthly wages are more than S$750.
| Employee Age | Employer CPF Rate | Employee CPF Rate | Total CPF Rate |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
CPF wage ceiling in 2026
CPF is not always calculated on your full monthly salary. Ordinary Wages are subject to the Ordinary Wage ceiling. For 2026, the Ordinary Wage ceiling is S$8,000 per month. This means that if your monthly salary is higher than S$8,000, CPF on Ordinary Wages is generally calculated up to S$8,000 only.
Salary below S$8,000
If your monthly salary is below the Ordinary Wage ceiling, CPF is generally calculated based on your actual eligible monthly wages.
Salary at S$8,000
If your monthly salary is S$8,000, CPF is generally calculated on S$8,000 of Ordinary Wages.
Salary above S$8,000
If your monthly salary is above S$8,000, CPF on Ordinary Wages is generally capped at the S$8,000 ceiling.
CPF examples by monthly salary
These examples assume a Singapore Citizen or PR third year onwards employee aged 55 and below, with employee CPF at 20% and employer CPF at 17%. Actual CPF may differ depending on CPF eligibility, wage type and official CPF computation rules.
| Gross Monthly Salary | Employee CPF | Employer CPF | Take-Home Before Tax |
|---|---|---|---|
| S$3,000 | S$600 | S$510 | S$2,400 |
| S$4,000 | S$800 | S$680 | S$3,200 |
| S$5,000 | S$1,000 | S$850 | S$4,000 |
| S$6,000 | S$1,200 | S$1,020 | S$4,800 |
| S$8,000 | S$1,600 | S$1,360 | S$6,400 |
| S$10,000 | S$1,600 | S$1,360 | S$8,400 before tax and other deductions |
Who needs to contribute CPF?
CPF generally applies to Singapore Citizens and Singapore Permanent Residents who are working in Singapore under an employer-employee relationship. Foreigners working in Singapore usually do not contribute CPF.
Singapore Citizens
Singapore Citizens who are employees generally contribute CPF if they meet the CPF contribution conditions.
Singapore PRs
PRs generally contribute CPF, but first-year and second-year PRs may be subject to graduated contribution rates.
Foreign employees
Foreigners working in Singapore generally do not contribute CPF. Their salary planning may mainly involve income tax and other deductions.
Employee CPF vs employer CPF
A common misunderstanding is that employer CPF is deducted from salary. In normal salary presentation, employee CPF reduces your cash salary, while employer CPF is an additional contribution paid by the employer.
Gross salary
This is your salary before employee CPF, tax and other deductions. Example: S$5,000 gross monthly salary.
Employee CPF deduction
If employee CPF is S$1,000, your cash salary before tax may become around S$4,000.
Employer CPF contribution
Employer CPF is paid separately by your employer. For S$5,000 salary at 17%, this may be around S$850.
Want to calculate your own CPF?
Use our CPF calculator to estimate employee CPF, employer CPF and take-home pay based on salary and age group.
CPF and take-home pay
Your monthly take-home pay is affected by employee CPF because employee CPF is deducted from gross salary. Employer CPF does not reduce your monthly salary, but it increases your total employment benefit.
| Item | Does it reduce monthly cash salary? | Explanation |
|---|---|---|
| Employee CPF | Yes | Deducted from your gross salary and credited into your CPF accounts. |
| Employer CPF | No | Paid separately by your employer on top of your salary. |
| Income tax | Not usually deducted as monthly CPF | Singapore income tax is generally assessed annually, although payment arrangements may vary. |
| Other deductions | Depends | Examples include unpaid leave, salary advances, insurance or company-specific deductions. |
Common CPF planning situations
CPF can affect job offer comparison, salary negotiation and monthly budgeting. Here are some common situations employees search for.
Comparing job offers
Compare gross salary, employee CPF, employer CPF and estimated take-home pay instead of looking at gross salary only.
Salary above S$8,000
If your salary is above the Ordinary Wage ceiling, your CPF deduction may not continue increasing in the same way.
PR status change
If you become a Singapore PR, your CPF treatment may change. First-year and second-year PR rates may differ from full rates.
Why trust this CPF guide?
SG Salary Tools is designed to explain CPF, tax and salary planning in a simple way for employees and job seekers. This guide is not official CPF advice, but it helps you understand the core concepts before checking official sources.
Simple examples
CPF rates are easier to understand when you can see S$3,000, S$5,000, S$8,000 and S$10,000 salary examples.
Built for Singapore
The guide focuses specifically on Singapore CPF contribution rates, wage ceiling and take-home pay planning.
Linked to calculators
You can move from guide to calculator directly when you want to estimate CPF based on your own salary.
Related Singapore calculators
Use these calculators to estimate CPF, salary after CPF and take-home pay.
Related Singapore salary guides
Learn more about Singapore salary, tax and employment rules.
Frequently Asked Questions
What are the CPF contribution rates in Singapore for 2026?
For Singapore Citizens and PRs from the third year onwards earning more than S$750 per month, the 2026 CPF rates depend on age. Employees aged 55 and below generally have 17% employer CPF and 20% employee CPF, giving a total CPF rate of 37%.
How much CPF does an employee contribute?
The employee CPF rate depends on age and CPF eligibility. For employees aged 55 and below under full CPF rates, employee CPF is generally 20% of eligible wages, subject to CPF wage ceilings.
How much CPF does an employer contribute?
Employer CPF depends on the employee’s age and CPF eligibility. For employees aged 55 and below under full CPF rates, employer CPF is generally 17% of eligible wages, subject to CPF rules and wage ceilings.
Is CPF calculated on gross salary?
CPF is generally calculated on eligible wages, but it is subject to wage ceilings. If your monthly Ordinary Wage is above the Ordinary Wage ceiling, CPF on Ordinary Wages is calculated only up to the ceiling.
What is the CPF Ordinary Wage ceiling in 2026?
The CPF Ordinary Wage ceiling in 2026 is S$8,000 per month. This affects how much of your monthly Ordinary Wages attracts CPF contributions.
Does employer CPF reduce my take-home salary?
No. Employer CPF is paid separately by your employer. Employee CPF is the part that is deducted from your gross salary and reduces your monthly cash take-home pay.
Do foreigners in Singapore contribute CPF?
Foreign employees in Singapore generally do not contribute CPF. CPF usually applies to Singapore Citizens and Singapore Permanent Residents, subject to CPF rules.
Do Singapore PRs contribute CPF?
Yes, Singapore PRs generally contribute CPF. However, first-year and second-year PRs may have graduated contribution rates, while PRs from the third year onwards generally follow full CPF rates.
How much CPF is deducted from a S$5,000 salary?
For an employee aged 55 and below under full CPF rates, employee CPF on S$5,000 salary is approximately S$1,000. Take-home pay before income tax and other deductions would be around S$4,000.
How much CPF is deducted from a S$10,000 salary?
For Ordinary Wages, CPF is subject to the Ordinary Wage ceiling. If the ceiling is S$8,000, employee CPF at 20% would generally be calculated on S$8,000, resulting in about S$1,600 employee CPF.
Is this CPF guide official?
No. SG Salary Tools provides simple salary and CPF planning information only. For official CPF rules, contribution rates and special cases, always check CPF Board directly.