CPF Changes in 2027
A summary of the contribution rate increases, account allocation changes, and updated retirement sums that take effect in January 2027.
Last updated: August 2026 · Based on official CPF Board announcements.
2027 Changes at a Glance
- Above 55–60: total CPF rises from 34% to 35.5%.
- Above 60–65: total CPF rises from 25% to 26%.
- The increase is allocated to RA up to the FRS, or to OA after the FRS has been set aside.
- 2027 BRS is $114,100, FRS is $228,200 and ERS is $456,400.
- The OW ceiling remains $8,000 in the published 2027 contribution tables.
2026 vs 2027 Rates by Age Band
| Age Band | 2026 Total | 2027 Total | Change |
|---|---|---|---|
| 55 and below | 37% | 37% | No change |
| Above 55 to 60 | 34% | 35.5% | +0.5pt ER, +1pt EE |
| Above 60 to 65 | 25% | 26% | +0.5pt each |
| Above 65 to 70 | 16.5% | 16.5% | No change |
| Above 70 | 12.5% | 12.5% | No change |
How Take-Home Pay Changes
For an employee above 55 to 60 earning more than $750, the employee rate rises by 1 percentage point. On $5,000 of CPF-applicable wages, that is $50 more employee CPF before rounding and about $50 less cash pay before tax. Above 60 to 65, the employee increase is 0.5 percentage point, or $25 on $5,000 of applicable wages.
How Employer Cost Changes
The employer rate rises by 0.5 percentage point for both affected groups. On $5,000 of applicable wages, employer CPF is about $25 higher before rounding.
How Account Allocation Changes
The allocation percentages for members above 55 shift towards RA in 2027, as shown below.
| Age Band | Year | OA | RA | MA |
|---|---|---|---|---|
| Above 55–60 | 2026 | 35.30% | 33.82% | 30.88% |
| 2027 | 33.82% | 36.61% | 29.57% | |
| Above 60–65 | 2026 | 14.00% | 44.00% | 42.00% |
| 2027 | 13.47% | 46.15% | 40.38% |
2027 Retirement Sums
The Basic Retirement Sum is $114,100, the Full Retirement Sum is $228,200 and the Enhanced Retirement Sum is $456,400 for members turning 55 in 2027.
| Retirement Sum | 2026 | 2027 |
|---|---|---|
| Basic Retirement Sum (BRS) | $106,500 | $114,100 |
| Full Retirement Sum (FRS) | $213,000 | $228,200 |
| Enhanced Retirement Sum (ERS) | $426,000 | $456,400 |
What to Do Before January 2027
Employees can estimate the change in take-home pay and review their monthly budget. Employers can update payroll tables, test low-wage and age-band boundaries, and confirm that wages earned from January use the 2027 policy date.
Compare Your 2026 and 2027 CPF
Use our side-by-side calculator to see how the 2027 changes affect your take-home pay.
Open 2026 vs 2027 Calculator →Frequently Asked Questions
Who is affected by the 2027 rate increase?
Employees above 55 to 65 and their employers are affected. Other full-rate age bands do not change.
Will take-home pay decrease?
For affected employees, the higher employee share can reduce cash pay before tax while increasing CPF savings.
Does all of the increase go to RA?
The increase is allocated to RA up to the FRS. If the FRS has already been set aside, it is channelled to OA.
What are the 2027 retirement sums?
BRS is $114,100, FRS is $228,200 and ERS is $456,400 for the relevant cohort.
Do the changes apply to December salary paid in January?
The official announcement states that the changes apply to wages earned from 1 January 2027.
Related
Disclaimer: CPF Calculator SG is an independent planning tool and is not affiliated with or endorsed by the Central Provident Fund Board, IRAS or the Singapore Government. Information on this page is based on published policy announcements and may be subject to revision. Always verify with the official CPF Board website for the most current information.