CPF from 1 Jan 2027: older workers save more, take home a bit less
If you are above 55 and still working, your payslip changes again in January. Nothing for you to do: your employer’s payroll handles it. Here is what moves, and by how much.
What changes
From 1 January 2027, CPF contribution rates go up for two age groups:
| Your age | Employer | You | Total |
|---|---|---|---|
| Above 55 to 60 | 16% → 16.5% | 18% → 19% | 34% → 35.5% |
| Above 60 to 65 | 12.5% → 13% | 12.5% → 13% | 25% → 26% |
If you are 55 or younger, or above 65, your rates stay the same.
Where the extra money goes
All of the increase goes into your Retirement Account, up to the Full Retirement Sum. If you have already set aside the Full Retirement Sum, it goes into your Ordinary Account instead. So the money is not gone; it moves from this month’s pay to your retirement.
What it means for your pay
Example: $5,000 a month, before income tax.
| Your age | You pay into CPF | Employer pays | Take-home | Total into CPF |
|---|---|---|---|---|
| Above 55 to 60 | $900 → $950 | $800 → $825 | $4,100 → $4,050 | $1,700 → $1,775 |
| Above 60 to 65 | $625 → $650 | $625 → $650 | $4,375 → $4,350 | $1,250 → $1,300 |
That is $25 to $50 less in your bank each month, and $50 to $75 more for retirement. Your own CPF contributions also qualify for CPF tax relief, so your income tax dips slightly too.
Who is affected
Singapore citizens and PRs (from their third year of PR) aged above 55 to 65, earning more than $750 a month. Expats on an Employment Pass or S Pass do not contribute to CPF, so nothing changes for them.
For employers, each affected worker costs an extra 0.5% of their wages.
Want your own numbers? The calculator switches to the 2027 rates on 1 January; pick your age band and salary.