19 Mar 2025
SOURCE: CPF Board
Each month, employees contribute a percentage of their wages to their three CPF accounts. Their employers also contribute to the employees’ CPF accounts and these contribution rates are dependent on the employee’s citizenship status, wage band and age group. As these contributions play a big part in forming one’s retirement nest egg, it is important to keep up with any changes to the contribution rates and stay updated.
Currently, the CPF contribution rates (monthly wages more than $750) are as follows:
From 1 January 2026, the contribution rates for senior workers will be increased to further strengthen their retirement adequacy. The new contribution rates will be as follows for employees earning monthly wages exceeding $750:
For senior employees aged above 55 to 65 who are working and have yet to accumulate enough savings for their desired retirement lifestyle, the increase in CPF contribution rates provides a boost to their retirement income.
In addition, there are various CPF calculators that can also help you with your contribution matters. For example, you can use them to calculate the monthly CPF contributions payable and the amount allocated into your Ordinary, Special and MediSave accounts, and more. Do note that with the closure of the Special Account (SA) from early 2025, contributions that would have gone to the SA savings which contribute to members’ retirement payouts (and hence are not withdrawable on demand) will be transferred to the Retirement Account (RA) up to the Full Retirement Sum (FRS), where they will continue to earn long-term interest rates.
The remaining SA savings that are withdrawable on demand will be transferred to the Ordinary Account (OA) and earn the short-term interest rate. Members can then voluntarily transfer their savings from the OA to the RA at any time, up to the prevailing Enhanced Retirement Sum (ERS), to earn higher interest and receive higher retirement payouts.
With these handy calculators, you now have the actual or potential amount that goes into your CPF accounts every month to aid you in your financial planning.
But how much monthly payouts would be enough? It can be difficult to gauge, which is why there are tools available to help make that planning easier. You can use the Plan my monthly payouts service to find out more about your monthly payout details, provide your payout instructions and confirm your bank account details.
The Plan my monthly payout service is available to you three months before you reach 65, and is for members born in 1957 and after. To use this service, please ensure that you have updated your contact details and provided a bank account under your Account settings.
The information provided in this article is accurate as of the date of publication.
