From January 1, 2026, Singapore’s Central Provident Fund (CPF) will undergo significant updates affecting both contribution rates and wage ceilings. These adjustments aim to ensure that CPF keeps pace with wage growth while helping Singaporeans, especially older workers, save more for retirement.
The CPF system is a cornerstone of retirement planning in Singapore. Contributions are made by both employees and employers and are credited into different accounts: the Ordinary Account (OA) for housing, the Special Account (SA) for retirement, and the Medisave Account (MA) for healthcare. The upcoming changes will mainly impact the Ordinary Wage (OW) ceiling and CPF contribution rates for older employees.
Adjustment in the Ordinary Wage Ceiling
The Ordinary Wage ceiling sets the maximum monthly salary on which CPF contributions are calculated. Currently, the OW ceiling is $7,400, but starting January 2026, it will increase to $8,000.
This increase is the final step in a four-phase adjustment that began in September 2023. The gradual approach allows employers to manage payroll costs while keeping CPF contributions in line with rising wages.
It is important to note that the CPF annual salary ceiling, which caps the total CPF contributions to $102,000 per year, will remain unchanged. This includes both Ordinary Wages and Additional Wages, such as bonuses. The Additional Wage ceiling and the annual CPF contribution limit of $37,740 will also stay the same.
History of Ordinary Wage Ceiling Adjustments
- 1 Jan 2016 – 31 Aug 2023: $6,000
- 1 Sep – 31 Dec 2023: $6,300
- 1 Jan – 31 Dec 2024: $6,800
- 1 Jan – 31 Dec 2025: $7,400
- From 1 Jan 2026: $8,000
Employees earning above the current ceiling will benefit as a larger portion of their monthly salary will now attract CPF contributions from both employer and employee. This translates to higher savings in their OA, SA, and Retirement Accounts, which strengthens long-term retirement security.
Increased CPF Contribution Rates for Older Workers
The second major change in 2026 will affect CPF contribution rates for employees aged 55 to 65. The government aims to narrow the gap between contribution rates of older and younger workers, helping seniors accumulate larger retirement savings.
For employees earning more than $750 per month, the total CPF contribution rate for those aged 55–60 will increase from 32.5% to 34%. For the 60–65 age group, it will rise from 23.5% to 25%. Both employer and employee contributions will increase, with employers contributing an additional 0.5 percentage points and employees contributing an extra 1 percentage point.
These extra contributions will be allocated to the Retirement Account up to the Full Retirement Sum (FRS). If the FRS is already met, the additional contributions will go to the Ordinary Account. This ensures older workers have higher retirement payouts in the future.
CPF Contribution Rates from January 2026 for Employees Earning Above $750
- 55 and below: 37% (17% employer, 20% employee)
- 55–60: 34% (16% employer, 18% employee)
- 60–65: 25% (12.5% employer, 12.5% employee)
- 65–70: 16.5% (9% employer, 7.5% employee)
- Above 70: 12.5% (7.5% employer, 5% employee)
Employees earning between $500 and $750 will continue to follow a phased-in contribution schedule. First- and second-year Singapore Permanent Residents will maintain the same graduated rates as before.
What These Changes Mean for Employees and Employers
For employees with higher salaries, the increase in the OW ceiling means more of their monthly income will be saved in CPF accounts, which strengthens long-term retirement security. Older workers will particularly benefit from increased contributions, which directly boost their Retirement Accounts.
Employers will see a slight increase in payroll costs for senior employees due to higher contribution rates. However, the step-by-step approach over recent years ensures businesses have had time to adjust without sudden financial burdens.
Overall, the 2026 CPF changes continue Singapore’s long-term strategy of helping residents build stronger retirement savings while keeping the system sustainable for employers and the economy.
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