How CPF contributions change after Singapore PR
A new permanent resident should check the payroll start date, contribution year and wage ceilings with the employer. The default rate changes in stages.
2026 private-sector and non-pensionable employee rates for those aged 55 or below with monthly wages above S$750. Years 1 and 2 assume graduated rates for both parties; year 3 onward uses full rates. Bars share a 37% scale. PR-year boundaries and wage ceilings apply separately.
CPF contributions for a new Singapore permanent resident employee normally use graduated rates for the first two years and full rates from the third. PR status alone does not identify the correct percentage: age, wages, the contribution year and any approved higher-rate election also matter.[1][4]
Three stages under the 2026 tables
Under the private-sector and non-pensionable employee tables, for those aged 55 or below earning more than S$750 a month, the default first-year rates are 4% for the employer and 5% for the employee. In year two they become 9% and 15%. From year three, full rates are 17% and 20%. The combined rates are therefore 9%, 24% and 37%. Different tables apply to older employees and lower wages.[1]
At S$6,000 of monthly Ordinary Wages with no Additional Wages, employee contributions would be S$300, S$900 and S$1,200 across these stages; employer contributions would be S$240, S$540 and S$1,020. This compares the stages using the 2026 schedule, rather than predicting unchanged rates in future years.
The PR year does not follow the calendar year
The starting date is the date of PR status shown on Form 5 or Form 5A. Year one runs from that date to the last day of the month containing the first anniversary. Year two begins the next month and ends on the last day of the month containing the second anniversary.[2]
For someone whose PR date is 20 October, the first stage ends on 31 October of the following year; the second begins on 1 November. Payroll should retain the individual’s actual start date instead of advancing the contribution year automatically each January.
The S$8,000 ceiling concerns Ordinary Wages
From 1 January 2026, the monthly Ordinary Wage ceiling is S$8,000, while the annual salary ceiling remains S$102,000. Bonuses and other Additional Wages have a separate ceiling calculation. A salary above S$8,000 does not by itself remove CPF liability on every bonus.[3]
A payroll review should distinguish Ordinary Wages, Additional Wages, employee deductions and the employer’s contribution. The employer contribution is not a second deduction of that amount from the employee’s salary.
Higher rates require the appropriate application
An employer and new PR employee may jointly apply for higher rates through the CPF Board’s process. An informal agreement should not be treated as an approved election.[4] Keep the PR effective-date document, date of birth, wage breakdown and any approved rate choice together for payroll. The employee table above is not a calculation of a self-employed person’s obligations.
Official sources
General policy information; individual circumstances and the competent authority’s requirements govern each application.