CPF is not one fixed percentage of salary. The wage month, age band, citizenship or PR stage, Ordinary Wage ceiling and low-wage rules all affect the result.
How the rule works
Classify pay as Ordinary Wages (OW) or Additional Wages (AW) first. From 2026, the monthly OW ceiling is SGD 8,000. For an employee aged 55 or below on full rates, the commonly applicable split is 20% employee and 17% employer.
Calculation method
Employee CPF = applicable wages × employee rate; employer CPF = applicable wages × employer rate. CPF Board rounding and low-wage rules can cause small differences from simple multiplication.
Three practical examples
- Age 35, SGD 5,000 OW: about SGD 1,000 employee and SGD 850 employer CPF.
- Age 35, SGD 9,000 OW: the 2026 wage base is capped at SGD 8,000, giving about SGD 1,600 employee and SGD 1,360 employer CPF.
- An employee aged 60 must use the relevant older-age band, not the rate for age 55 or below.
Special cases and limits
- First- and second-year PRs usually use graduated rates.
- Bonuses may be AW and subject to the annual AW ceiling.
- Self-employed people and employees who are neither citizens nor PRs are outside this standard model.
Frequently asked questions
Is employer CPF deducted from salary?
No. It is normally an additional employer cost.
Why can payroll differ by a few dollars?
Official rounding, wage classification and low-wage rules can affect it.
Sources and review
Written and reviewed by the QuickCalc editorial team. Last reviewed: 4 Sep 2026. To report a rule or calculation error, email contact@zevlis.com.