From 1 January 2027, CPF contribution rates will increase for senior employees aged above 55 to 65. This is part of Singapore’s ongoing effort to strengthen retirement adequacy for senior workers.
What’s changing
For employees earning monthly wages of more than S$750, total CPF contribution rates will increase by 1.5% for employees aged above 55 to 60.
The increase is shared between employer and employee, with the employer contribution increasing by 0.5% and the employee contribution increasing by 1%.
For employees aged above 60 to 65, total CPF contribution rates will increase by 1%. The increase is shared equally between employer and employee, with each contribution increasing by 0.5%.
Contribution rates for employees aged 55 and below, and employees above 65, will remain unchanged.
The changes apply to wages earned from 1 January 2027.
What this means for businesses
Employers will need to ensure that their payroll calculations reflect the updated CPF contribution rates from January 2027.
Businesses should plan for slightly higher CPF costs for affected senior employees.
Employers should also clearly communicate the changes to affected employees, particularly where the updated rates affect their take-home pay.
Officaid is ready
At Officaid, these updates are already on our radar.
CPF changes, regulatory updates, and payroll rule adjustments are built into our roadmap, so you don’t need to worry about keeping up with every announcement.
This change, and all upcoming ones, are handled accurately, automatically, and on time, so you can focus on running your business while Officaid keeps you compliant.