Guide · CPF
CPF contribution rates in Singapore: how they work
CPF is where most Singapore payroll goes wrong. This guide explains how contributions are structured — who pays what, how age affects the rate, and which wages count — so you understand the mechanics. Always confirm the exact current figures on the CPF Board website, as rates and ceilings are updated periodically.
Employer and employee both contribute
For most local employees, a CPF contribution is made up of two parts: an employer share paid on top of salary, and an employee share deducted from wages. Both are remitted to the CPF Board together. The combined rate depends mainly on the employee’s age.
Rates step down with age
CPF contribution rates are highest for younger workers and step down across defined age bands as employees get older. Because the bands and percentages are set by the CPF Board and adjusted from time to time, the reliable approach is to apply the current official rate for each employee’s age band rather than memorising a fixed number.
- Rates are banded by the employee’s age
- Employer and employee shares can differ within a band
- Senior-worker rates have been rising in recent years
Ordinary Wages vs Additional Wages
CPF distinguishes Ordinary Wages (OW) — typically your monthly salary — from Additional Wages (AW) such as bonuses. Each is subject to a ceiling that caps how much wage attracts CPF. Getting OW and AW right is one of the most common manual-payroll mistakes.
- Ordinary Wages: usually monthly salary, subject to the OW ceiling
- Additional Wages: bonuses and similar, subject to a separate AW ceiling
- Both ceilings are reviewed periodically by the CPF Board
Why automation matters
Because the rate depends on age band, OW/AW classification and current ceilings, manual CPF in a spreadsheet is error-prone. Vorkhive calculates employer and employee CPF automatically on every payroll run and keeps the handling aligned with current rules — so the right amount is computed without you maintaining tables.
Always verify the current figures
This guide explains the structure, not a fixed rate card. For the exact percentages, age bands and wage ceilings that apply right now, refer to the official CPF Board website (cpf.gov.sg), which is the authoritative source.
CPF rates FAQ
Who pays CPF — the employer or the employee?
Both. There is an employer contribution paid on top of salary and an employee contribution deducted from wages, remitted to the CPF Board together.
Do CPF rates change with age?
Yes. Contribution rates are banded by the employee’s age and generally step down as employees get older. Use the current official rate for each age band.
Where can I find the exact current CPF rates?
On the CPF Board website, cpf.gov.sg. Rates and wage ceilings are updated periodically, so it is the authoritative source for current figures.
Does Vorkhive calculate CPF for me?
Yes. Vorkhive computes employer and employee CPF automatically on every payroll run and keeps the handling aligned with current rules.