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CPF Contribution Rates 2027: Senior Worker Changes for Employers
Short answer: From 1 January 2027, CPF contribution rates rise for employees aged above 55 to 65. The total goes from 34% to 35.5% for those above 55 to 60, and from 25% to 26% for those above 60 to 65. The employer share rises by 0.5 percentage points in both bands, partly offset by the CPF Transition Offset.
Key facts at a glance
- The new rates apply to wages earned from 1 January 2027 onwards, for employees earning monthly wages above S$750 (CPF Board, as at 11 October 2026).
- Above 55 to 60: total 35.5% (employer 16.5%, employee 19%), up from 34%.
- Above 60 to 65: total 26% (employer 13%, employee 13%), up from 25%.
- Rates for employees aged 55 and below, above 65 to 70, and above 70 do not change.
- Senior workers on phased-in rates (monthly wages above S$500 up to S$750) see their rates increase proportionally.
- The CPF Transition Offset equals half of the increase in employer rates for every Singapore citizen and PR worker aged above 55 to 65.
- There are no changes to the graduated rates for first and second year Singapore PRs.
This article is general information only and is not legal, tax or immigration advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.
What are the CPF contribution rates from 1 January 2027?
The CPF Board has confirmed higher contribution rates for employees aged above 55 to 65 from 1 January 2027. The table below shows the rates for employees earning monthly wages above S$750. It reproduces the CPF Board’s published table, as at 11 October 2026.
| Employee’s age | 2026 total | From 1 Jan 2027: total | Employer | Employee |
|---|---|---|---|---|
| 55 and below | 37% | 37% | 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% | 9% | 7.5% |
| Above 70 | 12.5% | 12.5% | 7.5% | 5% |
The CPF Board notes that with the 2027 increase, the target contribution rates for senior workers aged above 60 to 65 will have been reached. See the CPF Board’s article on the 2027 changes and its detailed contribution rate tables for the full schedule.
Who does this affect, and who does it not?
It affects employers of Singapore citizens and PRs aged above 55 to 65. CPF contributions are made for citizens and PRs, so the payroll of foreign pass holders such as Employment Pass, S Pass and Work Permit holders is not changed by this announcement. If a PR is in the first or second year of PR status, the CPF Board states that the graduated contribution rates for that group are unchanged.
For an SME that hires foreign talent and also employs older local staff, the change is a local-payroll issue and is easy to miss while attention is on pass salary thresholds. Our guide to the employment letter for a PR application is relevant where a PR employee is also a senior worker, because CPF treatment follows status and age, not nationality alone.
How much will it cost per month? A worked example
The example below uses a monthly wage of S$5,000, which is below the CPF wage ceilings, so the full wage attracts contributions. The 2026 figures are derived from the CPF Board’s table by removing the 2027 increases shown in brackets.
| Employee | Employer share | Employee share | Total |
|---|---|---|---|
| Aged 58 in 2026 | 16% = S$800 | 18% = S$900 | 34% = S$1,700 |
| Aged 58 from 1 Jan 2027 | 16.5% = S$825 | 19% = S$950 | 35.5% = S$1,775 |
| Aged 62 in 2026 | 12.5% = S$625 | 12.5% = S$625 | 25% = S$1,250 |
| Aged 62 from 1 Jan 2027 | 13% = S$650 | 13% = S$650 | 26% = S$1,300 |
For this wage, the employer pays S$25 more a month for each senior worker in either band. The employee’s take-home pay falls by S$50 a month in the 55-to-60 band and S$25 a month in the 60-to-65 band, because the employee share rises as well. Always verify the exact amount against the CPF Board’s tables and the applicable ceilings before updating payroll.
What is the CPF Transition Offset?
The CPF Transition Offset (CTO) is a transitional wage offset that helps employers manage the higher business cost. The CPF Board states that it equals half of the increase in employer CPF contribution rates for every Singaporean and PR worker the employer hires who is aged above 55 to 65.
Because the employer rate rises by 0.5 percentage points in each band, half of that increase is 0.25 percentage points of wages. On a S$5,000 wage, that is S$12.50 a month per eligible worker. This figure is our own arithmetic from the CPF Board’s description and not a published amount, so check the CTO page for caps, duration and how the offset is paid before you budget. The CPF Board explains the offset in its employer FAQ on support for the 2027 increase and links to a dedicated CTO page.
Where does the increase go in the employee’s CPF accounts?
The CPF Board states that the increase for employees aged above 55 to 65 is allocated fully to the Retirement Account, up to the Full Retirement Sum. If the employee has already set aside the Full Retirement Sum in the Retirement Account, the increased contributions are channelled to the Ordinary Account instead.
For HR, this matters when employees ask why take-home pay has fallen. The answer is that the money is going to their own retirement savings, which can help in a conversation about the change.
What should employers do before January 2027?
- List every Singapore citizen and PR employee who will be above 55 and up to 65 at any point in 2027, and note the month each one crosses an age band.
- Update payroll software with the 2027 rate tables once your vendor releases them, and run a test payroll on a sample of senior workers.
- Check phased-in rates for any senior worker earning above S$500 and up to S$750 a month.
- Budget for the extra employer cost and deduct the expected CPF Transition Offset only once you have confirmed how it is paid.
- Write to affected employees explaining the new split between employer and employee shares.
- Revisit pay packages for roles where you quote net pay, since the employee share changes.
Do not leave testing to the final week of December. If you outsource payroll, ask your provider to confirm in writing that the 2027 tables are loaded. For related payroll compliance, see our guide to the IRAS Auto-Inclusion Scheme for employers, and our sister site’s senior worker CPF 2027 payroll calculator can help you model the change.
Which employees cross an age band during 2027?
The rates are set by age band: 55 and below, above 55 to 60, above 60 to 65, above 65 to 70, and above 70. An employee who passes 55, 60 or 65 during 2027 moves into a different band, and the new band’s rate then applies.
Make a list of everyone approaching 55, 60 or 65 in the year and check the CPF Board’s detailed rate tables for when the new band applies to each person. Moving from the 55-and-below band into the above 55 to 60 band lowers the total from 37% to 35.5%, while crossing 65 lowers it further to 16.5%, so a wrong band in either direction misstates both the employer and employee shares.
Frequently asked questions
Do the new CPF rates apply to my foreign employees?
No. CPF contributions are for Singapore citizens and PRs, and the CPF Transition Offset refers only to Singaporean and PR workers. Foreign pass holders are not covered by this change.
Are there changes for employees aged 55 and below?
No. The CPF Board’s table shows 37% total for employees aged 55 and below in both 2026 and 2027, and no change for those above 65.
When do the new rates start?
The CPF Board states that the changes apply to wages earned from 1 January 2027 onwards. Check the CPF Board’s tables if wages for December 2026 are paid in January 2027.
Does the PR graduated rate change?
No. The CPF Board states that there are no changes to the graduated contribution rates for first and second year Singapore PRs.
Is the CPF Transition Offset automatic?
The CPF Board describes the offset as support for employers and links to a dedicated page for details. Check that page for how it is paid and for any conditions.
Planning hires, passes or payroll for 2027? Contact Little Big Employment Agency for pass, PR and citizenship applications. Email [email protected] or Call/SMS/WhatsApp +65 8501 7133. For accounting, payroll and corporate secretarial support, see Raffles Corporate Services.
Last reviewed: 11 October 2026. The Editorial Team, Little Big Employment Agency.
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