In this guide · 7 sections
Short answer
From 1 Jan 2027, total CPF for employees above 55 to 60 rises from 34% to 35.5% (employer 16.5%, employee 19%), and above 60 to 65 from 25% to 26% (13% each). Rates for 55 and below and above 65 do not change. Test January payroll for each age band before you run it.
The new CPF rates from 1 January 2027
CPF Board's announcement CPF Contribution Changes from 1 January 2027 sets out the increase for employees aged above 55 to 65. It applies to wages earned from 1 January 2027. The table below is for Singapore Citizens and third-year-onwards Permanent Residents earning more than S$750 a month.
| Employee's age | 2026 total | From 1 Jan 2027 total | Employer | Employee |
|---|---|---|---|---|
| 55 and below | 37% | 37% (no change) | 17% | 20% |
| Above 55 to 60 | 34% | 35.5% (+1.5) | 16.5% (+0.5) | 19% (+1) |
| Above 60 to 65 | 25% | 26% (+1) | 13% (+0.5) | 13% (+0.5) |
| Above 65 to 70 | 16.5% | 16.5% (no change) | 9% | 7.5% |
| Above 70 | 12.5% | 12.5% (no change) | 7.5% | 5% |
CPF Board says the extra contributions for these employees go to their Retirement Account, up to the Full Retirement Sum, and to the Ordinary Account after that. Employees earning more than S$500 to S$750 a month, who pay phased-in rates, also see a proportional increase. Graduated rates for first- and second-year Permanent Residents do not change.
What the full 2027 rate table says
The detailed January 2027 CPF contribution rate tables (PDF) are what your payroll software should match. For the two changing age bands, Table 1 (Citizens and third-year PRs, private sector) shows the following.
| Monthly total wages | Above 55 to 60 | Above 60 to 65 |
|---|---|---|
| S$50 or less | Nil | Nil |
| Above S$50 to S$500 | 16.5% of TW (employer only) | 13% of TW (employer only) |
| Above S$500 to S$750 | 16.5% of TW + 0.57 x (TW - S$500) | 13% of TW + 0.39 x (TW - S$500) |
| Above S$750 | 35.5% of OW and AW | 26% of OW and AW |
| Maximum on Ordinary Wages | S$2,840 total, S$1,520 employee | S$2,080 total, S$1,040 employee |
The same PDF repeats CPF's rounding rule: round the total contribution to the nearest dollar, round the employee's share down to the dollar, and the employer's share is the difference. Payroll apps that get this wrong produce one-dollar errors that are tedious to fix later.
What it costs: worked examples and the Transition Offset
For most small employers the change is a few dollars per older employee per month. These examples use CPF's Table 1 rates and rounding rules, for a single month with ordinary wages only.
- Age 58, S$4,000 a month: total CPF34% in 2026, 35.5% from Jan 2027S$1,360 to S$1,420
- Age 58: employer share+S$20 a monthS$640 to S$660
- Age 58: employee share (take-home falls)+S$40 a monthS$720 to S$760
- Age 62, S$3,000 a month: total CPF25% in 2026, 26% from Jan 2027S$750 to S$780
- Age 62: employer and employee share each+S$15 a month eachS$375 to S$390
Calculated from CPF Board's 2026 and January 2027 rate tables. Confirm with CPF's contribution calculator.
The government is also cushioning the employer side. MOM's Budget 2026 press release of 3 March 2026 says the CPF Transition Offset is extended to December 2027 and will cover 50% of the increase in employer CPF contributions in 2027. Your payroll should still pay the full new rate; the offset does not change the rates in your software.
How to update and test your payroll software
Cloud payroll apps usually push the new rates as an update before January. Desktop software, spreadsheets and custom systems need someone to change them. Either way, do not assume. Test it.
Check the vendor's release notes
Look for a note that names the January 2027 CPF rates. If your vendor has not said anything by early December, ask in writing when the update will be live.
Confirm dates of birth and residency status
List every employee with age band, citizenship or PR year. Fix missing or wrong dates of birth now.
Run one test payslip per age band
Use a January 2027 pay date in a test run or a copy of the company. Include at least one employee above 55 to 60 and one above 60 to 65.
Compare with CPF's contribution calculator
Enter the same wages and age in CPF's online calculator. Totals and employee shares should match to the dollar.
Test a low-wage and a bonus case
If anyone earns S$500 to S$750, or you pay year-end bonuses in January, test those too, since phased-in rates and additional wages trip up software.
Tell affected staff about take-home pay
Employees above 55 to 65 will see slightly lower take-home pay from January because their share rises. A short note avoids surprised questions.
If you are choosing a new payroll app at the same time, our payroll software comparison for Singapore covers CPF submission, IR8A and pricing.
Spreadsheet or custom payroll? Change these cells
If you calculate CPF in Excel or a custom system, update both the rate lookup table and any hard-coded caps. A common mistake is updating the percentage but leaving the old maximum amount, so high earners are under-contributed.
CPF formula update checklist
The last item matters because the new rates apply to wages earned from 1 January 2027. Back pay or corrections for December 2026 work should still use the 2026 rates.
Do it yourself or get help?
If you use a mainstream cloud payroll app, the update is mostly checking and testing, which you can do in an hour. Spreadsheets, custom systems, or a move to a new payroll app before January are where help saves time and errors. Our guide to Xero vs QuickBooks in Singapore is useful if payroll needs to post into your accounting software.
Our Payroll Software Setup (S$390) sets up a Singapore payroll app with your employees, CPF settings and a tested first pay run. IT Sorted is a Singapore-based team of developers with over 10 years of experience. You pay upfront, send the details in writing through the site chat or contact form, and track progress on your order page. This guide is general information, not tax or legal advice; check CPF Board's pages for your specific case.
Frequently asked questions
Only Singapore Citizens and Permanent Residents (third year onwards, or those on full rates) aged above 55 to 65. CPF Board's announcement shows no change for employees aged 55 and below, above 65 to 70, or above 70. Graduated rates for first- and second-year Permanent Residents also stay the same in 2027.
They apply to wages earned from 1 January 2027. For most employers that means the January 2027 payroll, usually paid at the end of January or early February. Wages earned in December 2026, including late corrections or back pay for that month, still use the 2026 rates.
The employer rate rises by 0.5 percentage points for both affected age bands, so about S$5 more per S$1,000 of monthly wages. For an employee aged 58 earning S$4,000, the employer share goes from S$640 to S$660 a month. MOM says the CPF Transition Offset covers 50% of the employer increase in 2027.
MOM's Budget 2026 release says the offset is extended to December 2027 and covers half of the employer increase in 2027. It does not change what you pay through payroll: you still contribute at the full new rates. Check CPF Board and MOM announcements for how and when the 2027 offset is paid, and keep your CPF submissions accurate and on time.
Run a test January 2027 payslip for one employee in each affected age band, then enter the same wages and age into CPF Board's online contribution calculator. The total and the employee share should match to the dollar. Also test someone earning between S$500 and S$750 and any January bonus, since those use different formulas.