By MoneyBees
Work out the employer CPF you pay for a worker in 2026 or 2027 and the wage offsets IRAS pays you back: the Senior Employment Credit, the CPF Transition Offset for older workers, and the credits for hiring persons with disabilities and ex-offenders.
Including the employee's CPF, excluding yours.
From 1 Jan 2027, CPF rates rise for workers above 55 to 65.
Employer CPF a year
$4,500.00
$375.00 a month each
Offsets a year
$810.00
paid by IRAS
Net employer CPF
$3,690.00
after offsets
IRAS pays you $810.00 a year for this employee, 18% of the employer CPF you pay. You do not apply: IRAS pays January to June wages in September and July to December wages the next March, by GIRO or PayNow.
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| Scheme | A month | A year |
|---|---|---|
| Senior Employment Credit | $60.00 | $720.00 |
| CPF Transition Offset | $7.50 | $90.00 |
| Enabling Employment Credit | $0.00 | $0.00 |
| Uplifting Employment Credit (9 months) | $0.00 | $0.00 |
EEC and SEC do not stack: an employee with a disability gets EEC. The extra EEC for a hire out of work 6 months or more, and UEC, run for the first 9 months only.
| Age | Wage up to S$3,000 | S$3,000 to below S$4,000 |
|---|---|---|
| 60 to 64 | 2% of wage | S$240 - 0.06 x wage |
| 65 to 68 | 4% of wage | S$480 - 0.12 x wage |
| 69 and above | 7% of wage | S$840 - 0.21 x wage |
For Singapore Citizens aged 60 and above earning below S$4,000 a month, with CPF paid on time. Extended to end-2027 in Budget 2026.
| Age | Employer | Employee | Total |
|---|---|---|---|
| 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% |
The employer rate rose 0.5 points in 2026 for workers above 55 to 65; the CPF Transition Offset pays back half of that, 0.25% of wages up to S$8,000. From 1 Jan 2027 employer rates rise another 0.5 points for the same ages, with the same half offset.
You employ a 63-year-old Singapore Citizen on S$3,000 a month. Employer CPF at 12.5% is S$375 a month, S$4,500 a year. The Senior Employment Credit pays 2% of S$3,000, S$60 a month, and the CPF Transition Offset 0.25%, S$7.50. That is S$810 a year back, so your CPF costs S$3,690 net.
In 2027 the employer rate for ages above 60 to 65 is 13%, S$390 a month or S$4,680 a year. The offsets stay at S$810, so the net cost is S$3,870.
Figures checked 3 Oct 2026.
A wage offset IRAS pays employers equal to half of each year's rise in employer CPF rates for older workers. In 2026 employer rates rose 0.5 points for workers above 55 to 65, so the offset is 0.25% of their wages up to the S$8,000 ceiling. It continues for the 2027 increase.
Singapore Citizen employees aged 60 and above earning below S$4,000 a month, whose CPF was paid on time. Budget 2026 extended it to the end of 2027.
Up to 2% of wages for employees aged 60 to 64, 4% for 65 to 68 and 7% from 69, on wages up to S$3,000. Between S$3,000 and S$4,000 it tapers to nil.
No. IRAS works them out from your CPF records and pays automatically: wages from January to June in September, and July to December the following March, by GIRO or PayNow Corporate. The payouts are taxable in the year you receive them.
A wage offset for hiring Singapore Citizens and PRs with disabilities earning below S$4,000 a month: up to 20% of wages, capped at S$400 a month, until 2028. Hires who were out of work for 6 months or more get up to another S$400 a month for the first 9 months. It does not stack with the SEC.
Up to 20% of wages, capped at S$600 a month, for the first 9 months of employing an ex-offender released within the past 3 years and earning below S$4,000. It covers hires from April 2023 to December 2028 and is paid in May of the following year.
17% up to 55, 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70, on wages above S$750, from 1 January 2026.
PRs get the CPF Transition Offset, the EEC and the UEC if they qualify, but not the Senior Employment Credit, which is for Singapore Citizens only.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
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