CPF contribution rates for employees aged above 55 to 70 will be increased. To alleviate the rise in business costs due to the increase in CPF contribution rates for senior workers, employers will be provided with CPF Transition Offset equivalent to half the increase. The changes below will apply to wages earned from 1 January 2022:
For employees earning monthly wages of more than $750
Employees' age (years)
Current (% of wage)
CPF Contribution Rates changes from 1 Jan 2022
Total (% of wage)
By employer (% of wage)
By employee (% of wage)
Above 55 to 60
26
+2
+1
Above 60 to 65
16.5
Above 65 to 70
12.5
+1.5
+0.5
The following table summarises the contribution rates for Singapore Citizens and SPRs (from third year and onwards) from 1 January 2022.
Employee's age (years)
CPF Contribution Rates changes from 1 Jan 2022 (monthly wages > $750)
55 & below
37
17
20
28
14
18.5
10
8.5
8
6
Above 70
7.5
5
Companies who are using Whyze payroll solution need not worry about the changes as it will be updated and reflected in the CPF records automatically.
CPF Transition Offset (CTO) To alleviate the rise in business costs due to the increase in CPF contribution rates for senior workers, the Government will provide employers with a transitionary wage offset equivalent to half of the increase in employer CPF contribution rates in 2022, for every Singaporean and Permanent Resident worker they employ aged above 55 to 70. There is no need to apply for the CTO. Payouts are automatically computed and disbursed half-yearly to eligible employers. For more information, you can refer to: CPF Increase in Contribution Rates from 1 January 2022 CPF Transition Offset (CTO)