The 2026 Ordinary Wage ceiling is SGD 8,000 per month, but CPF is still more than pay multiplied by one rate. Age, status, OW/AW classification and official rounding all affect the payslip.
Start with a SGD 5,000 salary
- Assumptions: age 35, Singapore citizen, 2026, and all monthly pay is OW.
- Employee CPF: about SGD 1,000, normally deducted from cash salary.
- Employer CPF: about SGD 850, paid in addition by the employer.
- Cash salary: about SGD 4,000; total CPF credited is about SGD 1,850.
This excludes bonuses, other payroll deductions and low-wage phasing. Official payroll follows CPF Board computation rules.
How is CPF calculated in 2026?
First limit OW to the applicable monthly ceiling, then select the employee and employer rates for the worker’s age and status. A useful estimate is applicable wage × contribution rate. AW needs a separate annual-ceiling check.
What does the 2026 OW ceiling change?
| Monthly pay | OW subject to CPF | Employee | Employer |
|---|---|---|---|
| SGD 5,000 | SGD 5,000 | about SGD 1,000 | about SGD 850 |
| SGD 8,000 | SGD 8,000 | about SGD 1,600 | about SGD 1,360 |
| SGD 9,000 | SGD 8,000 | about SGD 1,600 | about SGD 1,360 |
The table assumes full rates for someone aged 55 or below. The SGD 9,000 row shows that OW above the SGD 8,000 monthly ceiling does not increase that month’s OW contribution.
How much do age bands change the rates?
| Age in 2026 | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 | 18% | 16% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
What changes for first- and second-year PRs?
The default first- and second-year Singapore Permanent Resident arrangement generally uses graduated employer and employee rates (G/G). Full rates normally apply from the third year, unless a higher-rate arrangement has been approved. Use the PR conversion date, not just the label “PR”.
Why can a payslip differ by a few dollars?
Official computation includes CPF rounding, low-wage bands, multiple wage items in the same month and OW/AW classification. A large difference is a reason to recheck age, PR stage and wage type.
What does this estimate not cover?
- Phased employee rates for monthly wages of SGD 750 or below.
- Approved higher PR arrangements, exemptions or special employment statuses.
- Self-employed MediSave and workers who are neither citizens nor PRs.
Three checks people often need
Is employer CPF deducted from salary again?
No. The employer share is normally an additional employer cost, not a second deduction from the employee’s cash salary.
Why might only part of a bonus attract CPF?
A bonus is generally AW and must fit within the annual AW ceiling after CPF-applicable OW is considered.
When should I use the official calculator?
Use the CPF Board calculator for low wages, early-year PR cases, several AW payments, payroll reporting or reconciliation.
Check the CPF Board source
Contribution rates and computation · Ordinary Wage ceiling
Written and reviewed by the QuickCalc editorial team. Last reviewed: 8 Sep 2026. Report a rule or calculation issue to w56975828@gmail.com.