CPF contribution for PRs is phased in over two years. A new Singapore Permanent Resident aged 55 and below pays 5% of wages in the first year, with 4% from the employer. In the second year it is 15% and 9%. From the third year, the full rates apply: 20% from you and 17% from your employer, the same as a Singapore Citizen.
The lower start softens the drop in take-home pay. It also means much less goes into your CPF in those two years. Here are the rates, the cost in dollars, and how to opt for full rates sooner.
CPF Contribution for PRs: The Graduated Rates
These are the default rates in CPF Board’s 2026 tables for private-sector employees earning more than S$750 a month.
| Age | Year 1: employer + employee | Year 2: employer + employee | Year 3 onwards (2026) |
|---|---|---|---|
| 55 and below | 4% + 5% = 9% | 9% + 15% = 24% | 17% + 20% = 37% |
| Above 55 to 60 | 4% + 5% = 9% | 6% + 12.5% = 18.5% | 16% + 18% = 34% |
| Above 60 to 65 | 3.5% + 5% = 8.5% | 3.5% + 7.5% = 11% | 12.5% + 12.5% = 25% |
| Above 65 to 70 | 3.5% + 5% = 8.5% | 3.5% + 5% = 8.5% | 9% + 7.5% = 16.5% |
| Above 70 | 3.5% + 5% = 8.5% | 3.5% + 5% = 8.5% | 7.5% + 5% = 12.5% |
CPF Board notes that the graduated rates have not changed since 1 January 2016, and it has confirmed they stay the same in 2027. The year 3 rates for ages above 55 to 65 rise on 1 January 2027. See CPF contribution rates for 2026 and 2027.
The years are counted from the date your PR status was granted, shown on your Entry Permit, not the calendar year. CPF Board’s rule is that year 1 runs to the last day of the month of your first anniversary, and year 2 to the end of the month of your second. So PR status granted on 15 January 2026 moves to year 2 rates from 1 February 2027 and to full rates from 1 February 2028.
What It Means in Dollars
Take an illustrative new PR aged 35 earning $6,000 a month.
| Your share | Employer’s share | Total into CPF | Take-home pay | |
|---|---|---|---|---|
| Before PR | None | None | None | $6,000 |
| Year 1 | $300 | $240 | $540 | $5,700 |
| Year 2 | $900 | $540 | $1,440 | $5,100 |
| Year 3 onwards | $1,200 | $1,020 | $2,220 | $4,800 |
Take-home pay falls by $300 a month at first, by another $600 in the second year and by another $300 in the third. That is a $1,200 drop over two years, even though the salary has not changed.
The other side of the table matters more for long-term plans. Over the first two years, $23,760 goes into CPF on graduated rates. On full rates it would be $53,280.
The gap is $29,520, and $15,120 of it is employer money you never receive under the default arrangement.
Our CPF contribution calculator and take-home pay calculator let you run your own salary.
The short version: New PRs pay 9% in total CPF in year 1 and 24% in year 2 if aged 55 and below, then the full 37% from year 3. You and your employer can jointly apply for higher rates earlier, which builds housing and retirement savings faster at the cost of take-home pay.
Applying for Full Rates: The Joint Application
CPF Board allows two alternatives during the first two years. Both need a joint application from you and your employer, submitted online to CPF Board. Higher rates apply after CPF Board approves it.
Option 1: full employer and full employee rates. You are treated like a third-year PR from the start. For those aged 55 and below, that is 17% and 20%.
Option 2: full employer rate, graduated employee rate. Your employer pays 17% while you stay on 5% in year 1 and 15% in year 2. For those aged 55 and below, the totals are 22% in year 1 and 32% in year 2.
| For age 55 and below | Year 1 total | Year 2 total |
|---|---|---|
| Default: graduated on both sides | 9% | 24% |
| Option 2: full employer, graduated employee | 22% | 32% |
| Option 1: full on both sides | 37% | 37% |
Two cautions.
Your employer has to agree. CPF Board is clear that employers are not required to pay more than the graduated rate in the first two years. Option 2 costs the employer the most relative to the default, and option 1 costs you the most in take-home pay.
Ask before you apply whether the choice can be changed later. CPF Board’s public guidance does not spell this out, so treat it as a decision you may not be able to reverse.
Who Might Want Full Rates Sooner
This is a trade between cash now and CPF savings later. Neither side is right for everyone.
Reasons some PRs apply:
- Buying a home. Ordinary Account savings can be used for a property purchase and loan instalments. On the $6,000 example, the gap between default and full rates is $29,520 over two years, most of it flowing to the Ordinary Account at age 35.
- Employer money. Under either option, the employer’s 17% is additional pay that you would otherwise not receive.
- Guaranteed interest. CPF savings earn 2.5% to 4% a year at current floor rates. See CPF interest rates explained.
Reasons some stay on graduated rates:
- Cash flow. The first years as a PR often come with rent, school fees or moving costs.
- Access. CPF savings are for housing, healthcare and retirement. They are not available for general spending.
- Uncertain plans. If you are not sure how long you will stay in Singapore, weigh how and when CPF savings can be accessed. CPF Board publishes the rules for members who leave Singapore permanently.
What Else Changes When You Become a PR
The same account structure. Your contributions are split between the Ordinary, Special and MediSave Accounts by age, as for citizens. See CPF accounts explained and CPF allocation rates by age.
The same wage ceilings. CPF is charged on monthly pay up to $8,000 in 2026. CPF Board states that the Additional Wage ceiling applies to citizens and PRs alike. For a first-year PR aged 55 and below, the most deducted from monthly salary is $400. See CPF wage ceilings and limits.
The same retirement rules. The Retirement Account at 55 and CPF LIFE from 65 work the same way. CPF Board’s automatic inclusion in CPF LIFE covers Singaporeans and PRs born in 1958 or later with at least $60,000 in retirement savings when payouts start.
Tax. Compulsory employee CPF contributions reduce your taxable income. Our income tax calculator shows the effect on your bill.
What To Do Next
- Ask HR which rate table applies to you and the month your second-year and third-year rates begin.
- Check your first payslip after getting PR status. The CPF deduction should match the graduated rate, unless a joint application has been approved.
- Budget for the two later steps down in take-home pay.
- If you are planning to buy a home soon, work out how much more your Ordinary Account would hold on full rates, then raise the joint application with your employer.
- Log in with Singpass and learn how to read your CPF statement, so you can see each contribution arrive.
