CPF rates for a PR: second year
In the second year the graduated rates step up, but they are still below the full rate. Here is what applies and when full rates begin.
4 min read · Checked against CPF Board pages in October 2026
Months 14 to 25
after the PR start month
24% total
for ages 55 and below (9% + 15%)
Year 3
moves to the full rates
When the second year starts and ends
The second year begins the month after the first anniversary of the PR date and runs to the last day of the month of the second anniversary.
For a PR date of 15 March 2026, second-year rates apply to wages for April 2027 to March 2028. Full rates start with April 2028 wages.
Second-year rates
The graduated rates step up in the second year. They are still below the full rates for most age groups.
| Age group | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 9% | 15% | 24% |
| Above 55 to 60 | 6% | 12.5% | 18.5% |
| Above 60 to 65 | 3.5% | 7.5% | 11% |
| Above 65 to 70 | 3.5% | 5% | 8.5% |
| Above 70 | 3.5% | 5% | 8.5% |
For wages above $750 a month, up to the ceiling. These rates are the same in 2026 and 2027.
| Age group | 2026 |
|---|---|
| 55 and below | 0.45 |
| Above 55 to 60 | 0.375 |
| Above 60 to 65 | 0.225 |
| Above 65 to 70 | 0.15 |
| Above 70 | 0.15 |
Age still matters
Higher rate options
If the employer and employee have agreed higher rates with CPF, the employer may pay the full rate while the employee stays on the graduated rate, or both may pay the full rate. The graduated rates above apply unless CPF has agreed otherwise.
| Age group | Full employer, graduated employee | Full employer, full employee |
|---|---|---|
| 55 and below | 17% + 15% = 32% | 17% + 20% = 37% |
| Above 55 to 60 | 16% + 12.5% = 28.5% | 16% + 18% = 34% |
| Above 60 to 65 | 12.5% + 7.5% = 20% | 12.5% + 12.5% = 25% |
| Above 65 to 70 | 9% + 5% = 14% | 9% + 7.5% = 16.5% |
| Above 70 | 7.5% + 5% = 12.5% | 7.5% + 5% = 12.5% |
For wages above $750 a month, up to the ceiling. From January 2027 the employer share rises for ages above 55 up to 65, in line with the full rates.
In Wageclerk
Worked example
Aged 30, wages $2,000, second-year PR. The total is 24% of $2,000, which is $480. The employee’s share is 15%, which is $300. The employer pays $180.
With a full employer rate and the same graduated employee rate, the total is 32%, which is $640. The employee still pays $300, and the employer pays $340.
What changes in year three
- Both shares move to the full rates for their age.
- Take-home pay drops for the employee, so it helps to tell them in advance.
- Wageclerk moves the rates automatically and warns on the review page the month before.