Singapore has raised the rates of CPF contribution from 1^st January 2026 for employees who are aged between 55 and 65. The total CPF contribution rate increased by 1.5 %age points, consisting of a 0.5 %age point rise in the shares of employers and a 1 percentage point rise in the shares of employees.

The change is the part of measures of Singapore to empower the frequency of retirement for elderly employees. They are supposed to ensure their payroll systems use the right rates based on age.

What Are the CPF Senior Worker Rates in 2026?

For people who are earning a wage above 750 SGD and are Singapore citizens and permanent residents, the CPF contribution rates for 2026 are:

• For those below age 55, the CPF contribution for the employer is 17%, and for the employee is 20%, which makes the total CPF contribution 37%
  • For ages ranging from 55 to 60, the CPF is 16% for the employer and 18% for the employee, and the total CPF becomes 34%
  • For ages between 60 and 65, the CPF for the employer and employee is the same, which is 12.5%, making it 25% total CPF
  • For ages between 65 and 70, it is 9% for the employer and 7.5% for the employee, making it 16.5% in total
  • For ages above 70, the CPF for the employer is 7.5%, and for the employee, it is 5%, making it 12.5% in total

How Do CPF Contributions Change After 55, 60, and 65?

The change in CPF contributions for employees aged 55, 60, and 65 is determined by the applicable age band of the employee. For example, an employee aged 57 falls into the 50 to 60 age category, whereas an employee aged 63 falls into the category of 60 to 65.

Practical Example

Let us suppose that an employee turns 60 years old on 15^th July, 2026. For wages that were earned in July, the rate will remain the same as that of the current age group. However, from 1^st of August, 2026, the employee shifts into the category of 60 to 65.

For monthly wages of 7,000 SGD, the applicable CPF contribution for 2026 will be:

• Employer: 7,000 SGD with 12.5% = 875 SGD
  • Employee: 7,000 SGD with 12.5% = 875 SGD
  • Total CPF Contribution: 1,750 SGD

What Are the Obligations for Employer CPF Contribution for Aged Employees?

Employers are supposed to calculate and pay the CPF contributions precisely for eligible Singapore Permanent Resident and Singapore Citizen employees. The rates of CPF contribution depend on the PR and citizenship status, wages, and age, so employers may not assume all senior employees implement the same rate.

Companies in Singapore are supposed to review their payroll data accordingly for employees approaching age 55, 60, 65, and 70 by ensuring that the correct rate is implemented at the specific time.

How Much Extra CPF Do Employers Pay for Senior Employees?

The employer CPF rate is raised by 0.5 percentage points from 1^st January, 2026 for employees aged between 55 and 65. For example, if an employee is aged 58 and earning 7,000 SGD per month, he or she would have:

• Employer CPF for 2025: 15.5% = 1,085 SGD
  • Employer CPF for 2026: 16% = 1,120 SGD
  • Additional employer cost: 35 SGD per month

Is There Any Government Support for Increase in CPF Rates?

The simple answer is yes. Employers receive a CTO (CPF Transition Offset) to cut half of the raise in the employer CPF contribution for eligible senior employees.

Conclusion

In the end, it can be concluded that the senior employees rate for 2026 directly affects employees aged between 55 and 65, with an increase in employer and employee contributions. For employers, the main problem is not simply the rising percentage. The teams of payroll must identify the age band of the employees, by applying the new rate at right time by accounting for CTO (CPF Transition Offset).

It is important to keep the payroll settings updated by reviewing employees reaching 55, 60, 65, and 70, which can assist businesses in avoiding incorrect deductions and contributions of CPF.

Call to Inquire

We at FAST ACCOUNTING, are here to assist the companies in Singapore with CPF calculations, payroll processing, and ongoing compliance by assisting the employers by keeping the records of payroll with the recent CPF requirements. Call us today to learn more about our corporate secretarial services and how we can assist you in your CPF calculations while you can focus on your core business operations.