From 1 January 2027, CPF contribution rates will increase for employees aged above 55 to 65. For employees earning more than S$750 a month, the total CPF rate rises 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 increases by 0.5 percentage point in both age bands. Employers will receive a CPF Transition Offset equivalent to half of that employer-rate increase, and no application is required.
If you employ Singapore Citizens or Permanent Residents in these age groups, this is mainly a payroll-planning change. The new rates apply to wages earned from 1 January 2027, so payroll systems and salary-cost budgets should be ready before the first January payroll is processed.
CPF contribution rates from 1 January 2027
For employees earning monthly wages above S$750, the rates will be:
| Employee age | 2026 total CPF | 2027 employer | 2027 employee | 2027 total CPF |
|---|---|---|---|---|
| 55 and below | 37% | 17% | 20% | 37% |
| Above 55 to 60 | 34% | 16.5% (+0.5) | 19% (+1) | 35.5% (+1.5) |
| Above 60 to 65 | 25% | 13% (+0.5) | 13% (+0.5) | 26% (+1) |
| Above 65 to 70 | 16.5% | 9% | 7.5% | 16.5% |
| Above 70 | 12.5% | 7.5% | 5% | 12.5% |
The increase only affects the two age bands above 55 to 65. There is no rate change for employees aged 55 and below, above 65 to 70, or above 70 under this particular 2027 adjustment.
What changes for employers?
For affected employees earning above S$750 a month, the employer CPF rate increases by 0.5 percentage point.
For an employee aged above 55 to 60, the employer rate moves from 16% in 2026 to 16.5% from January 2027. For an employee aged above 60 to 65, it moves from 12.5% to 13%.
The employee contribution also increases. Employees above 55 to 60 will contribute 19%, up from 18%, while employees above 60 to 65 will contribute 13%, up from 12.5%.
The age band matters. CPF Board applies a new age-group rate from the first day of the month after the employee's 55th, 60th, 65th or 70th birthday. Employers should therefore ensure that payroll systems handle age-band changes correctly as well as the January 2027 rate change.
How the CPF Transition Offset helps employers
The Government will provide a CPF Transition Offset for the 2027 increase. The offset is equal to half of the increase in employer CPF contributions for every Singapore Citizen and Permanent Resident employee aged above 55 to 65.
Since the employer-rate increase is 0.5 percentage point in both affected age bands, the offset cushions part of the additional employer cost during the transition. CPF Board states that the support is provided automatically, so employers do not need to submit a separate application.
What about employees earning S$500 to S$750?
The contribution-rate increase also applies to senior workers earning more than S$500 and up to S$750 a month. These employees are already on phased-in CPF contribution rates, and their phased-in rates will increase proportionally.
For lower-wage cases, employers should use the detailed CPF contribution tables or CPF calculator rather than applying the headline percentages above directly.
What about Singapore Permanent Residents?
The 2027 senior-worker increase applies to the relevant full CPF rates for Singapore Citizens and Singapore Permanent Residents. However, CPF Board states that there are no changes to the graduated contribution rates for first- and second-year Singapore Permanent Residents.
If an employee has only recently obtained PR status, check the applicable SPR year and contribution table before calculating CPF.
Where will the extra CPF contributions go?
The increase in CPF contributions for employees aged above 55 to 65 will be allocated to the employee's 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 will instead be channelled to the Ordinary Account.
Employer checklist before January 2027
- Identify employees who will be aged above 55 to 65 in January 2027.
- Check whether your payroll software will apply the new 2027 CPF tables automatically.
- Budget for the 0.5 percentage point increase in the employer CPF share for affected employees.
- Do not reduce payroll planning to the headline rate where an employee earns S$500 to S$750 or is a first- or second-year SPR.
- Check employees who cross an age threshold during 2027, because the applicable age-group rate changes from the following month.
- Use CPF Board's contribution calculator or detailed tables to verify edge cases before payroll is finalised.
Official CPF resources
CPF Board has published the 2027 employer contribution-rate update, together with a breakdown of the new senior-worker rates and guidance on the CPF Transition Offset.
Preparing payroll for 2027
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