CPF for Singapore PR works on a graduated scale. Once you become a Singapore Permanent Resident, both you and your employer must start making Central Provident Fund (CPF) contributions, but the rates are lower for the first two years and rise to the full rate from the third year. For an employee aged 55 and below, the total contribution starts at 9% of wages in the first year, climbs to 24% in the second year, and reaches the full 37% from the third year onwards, per CPF Board rates effective 1 January 2026.
This guide sets out the exact first year, second year and full contribution rates by age band, splits the employer and employee shares, and explains the option to jointly apply for full rates earlier. It also covers the CPF accounts your money flows into and why foreigners on an Employment Pass or S Pass do not pay CPF at all. Every figure here is dated to the CPF Board tables effective 1 January 2026.
Key Takeaways
- Key takeaway - contributions start at PR: CPF for Singapore PR becomes compulsory from the day PR status is granted, for any month you earn more than S$50.
- Graduated for two years: first year and second year PRs pay reduced rates so the cash impact is eased; full rates apply only from the third year.
- Headline rates (age 55 and below): total 9% in year one, 24% in year two, then 37% from year three, per CPF Board rates effective 1 January 2026.
- Both shares apply: the employer pays a share and the employee's share is deducted from wages; the split changes each year.
- Foreigners differ: Employment Pass, S Pass and Work Permit holders do not contribute CPF; only Singapore Citizens and PRs do.
- Higher rates by choice: an employer and employee can jointly apply to CPF Board to pay full rates earlier than the third year.
When CPF for a New PR Begins
CPF contributions become payable from the date a person obtains Singapore Permanent Resident status. From that point, an employer must pay CPF for any calendar month in which the PR employee earns more than S$50, and the employee's share is deducted from wages once monthly pay passes S$500. There is no waiting period: the obligation is tied to the grant of PR, not to a length of service.
The reason new PRs pay less at the start is to ease the move onto CPF. The first two years use graduated rates, which the CPF Board labels G/G (graduated employer, graduated employee). The clock runs by PR anniversary: the first year covers the 12 months from the day PR status is obtained, the second year the following 12 months, and the full rate applies from the third year onwards.
How PR CPF Differs From Work Pass Holders
CPF applies only to Singapore Citizens and Permanent Residents. Foreigners working here on an Employment Pass, S Pass or Work Permit do not contribute to CPF, and their employers do not pay an employer share into CPF for them. This is the single biggest change many professionals notice after converting from a work pass to PR: take-home pay drops because an employee CPF share is now deducted, while the employer adds its own contribution on top of salary.
Graduated Contribution Rates for the First Two Years
The table below shows the standard graduated rates (G/G) for a PR earning above S$750 a month, by age band, with the employer and employee shares split out. These are CPF Board rates effective 1 January 2026 and have been unchanged since 1 January 2016.
| Age band | Year 1 employer | Year 1 employee | Year 1 total | Year 2 employer | Year 2 employee | Year 2 total |
|---|---|---|---|---|---|---|
| 55 and below | 4% | 5% | 9% | 9% | 15% | 24% |
| Above 55 to 60 | 4% | 5% | 9% | 6% | 12.5% | 18.5% |
| Above 60 to 65 | 3.5% | 5% | 8.5% | 3.5% | 7.5% | 11% |
| Above 65 | 3.5% | 5% | 8.5% | 3.5% | 5% | 8.5% |
Reading the First Year Rate
In the first year, a PR aged 55 and below pays a total of 9% of wages, made up of a 4% employer share and a 5% employee share. The employee share is capped on Ordinary Wages up to the wage ceiling of S$8,000 a month. Older workers pay slightly less in total but keep the same 5% employee share in the first year.
Reading the Second Year Rate
The second year steps up sharply for younger PRs. A PR aged 55 and below pays a total of 24%, split as a 9% employer share and a 15% employee share. By the third year, the rate jumps again to the full level, so a second year PR should plan for the higher deduction ahead.
Full Contribution Rates From the Third Year
From the third year of PR status, a PR is treated the same as a Singapore Citizen for CPF. The full rates apply, scaling down by age. The figures below are CPF Board rates effective 1 January 2026 for wages above S$750 a month, up to the Ordinary Wage ceiling of S$8,000.
| Age band | Employer share | Employee share | Total rate |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
For senior workers aged above 55 to 60, the total rate rose to 34% from 1 January 2026, with the employer share at 16% and the employee share at 18%. The S$8,000 Ordinary Wage ceiling is the final step of a phased increase that began in September 2023.
Applying for Full Rates Earlier
A new PR does not have to stay on the graduated rates. An employer and a first or second year PR employee can jointly apply to CPF Board to contribute at higher rates. Two options exist.
- Full employer and full employee rates: both sides pay the standard rates in Table 1 straight away, identical to a Citizen or a third year PR. This builds CPF savings faster but reduces take-home pay sooner.
- Full employer with graduated employee rates (F/G): the employer pays the full share while the employee keeps the lower graduated share, easing the cash impact on the worker while still growing the CPF balance.
The application is made through CPF Board and takes effect after approval. For a PR aged 55 and below choosing F/G in the first year, the employer pays 22% in total terms while the employee share stays at 5%; choosing full rates for both moves straight to the 17% employer and 20% employee split. Many couples planning a home purchase opt for higher rates early to build the Ordinary Account balance used for housing.
Where Your CPF Money Goes
Each month's CPF contribution is divided across separate accounts, each with its own purpose. The allocation shifts with age, sending more towards healthcare and retirement as a member gets older.
- Ordinary Account (OA): used for housing, an approved property, insurance and certain investments. This is the account most new PRs draw on for a flat or condominium purchase.
- Special Account (SA): long-term savings for retirement that earn a higher interest rate. For members aged 55 and above the Special Account is closed and the savings move to the Retirement Account.
- MediSave Account (MA): set aside for hospital bills, approved outpatient care and health insurance premiums such as MediShield Life and CareShield Life.
- Retirement Account (RA): created at age 55 from Special and Ordinary Account savings, and used to provide CPF LIFE monthly payouts in retirement.
The same account structure applies whether a PR is on graduated or full rates. Only the total amount flowing in differs while contributions are still graduated.
Frequently Asked Questions About CPF for Singapore PRs
Do Singapore PRs have to pay CPF?
Yes. CPF for Singapore PR is compulsory. Once you become a Permanent Resident, both you and your employer must contribute for any month you earn more than S$50, with the employee share deducted once pay exceeds S$500.
What are the CPF rates for a first year PR?
Under the standard graduated rates effective 1 January 2026, a first year PR aged 55 and below pays a total of 9% of wages, made up of a 4% employer share and a 5% employee share. Older age bands pay 8.5% in total.
What are the CPF rates for a second year PR?
A second year PR aged 55 and below pays a total of 24%, split as a 9% employer share and a 15% employee share, per CPF Board rates effective 1 January 2026. The rate then rises to the full 37% from the third year.
When does a PR pay full CPF rates?
Full CPF rates apply from the third year of PR status. For a worker aged 55 and below that is a total of 37%, with a 17% employer share and a 20% employee share. An employer and employee can also jointly apply to pay full rates earlier.
Do foreigners on an Employment Pass or S Pass pay CPF?
No. CPF covers only Singapore Citizens and Permanent Residents. Foreigners on an Employment Pass, S Pass or Work Permit do not contribute CPF, which is why take-home pay changes after converting a work pass to PR.
Can a new PR start paying full CPF rates straight away?
Yes. An employer and a first or second year PR can jointly apply to CPF Board to pay full employer and full employee rates, or full employer with graduated employee rates, instead of waiting until the third year.
Official Sources and References
- CPF Board - How much CPF contributions to pay
- CPF Board - CPF contribution rates from 1 January 2026 (PDF)
- CPF Board - CPF overview and accounts
- ICA - Becoming a Singapore Permanent Resident
Explore Catalyst Immigration’s other services:
- Permanent Residency Application
- Singapore Citizenship Benefits for PR
- Singapore PR vs Citizenship
- Employment Pass and Work Visa
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Catalyst Immigration guides professionals through the move from a work pass to Permanent Resident status, including what changes in your pay once CPF for Singapore PR begins. We map your eligibility, prepare a strong PR application, and explain the practical effects of approval so there are no surprises after you collect your Re-Entry Permit.