From 1 January 2026, Singapore’s Central Provident Fund scheme will implement significant adjustments to contribution ceilings and rates, changes that affect both employers and employees across multiple dimensions of retirement planning and payroll administration.
The CPF Ordinary Wage ceiling will rise from $7,400 to $8,000 per month, marking the final step in a multi-year adjustment process. This increase means that employees earning monthly incomes above $7,400 will have a larger portion of their wages subject to CPF contributions. This adjustment represents the final step in phased increases initiated in September 2023.
The annual salary ceiling, however, remains unchanged at $102,000, and the Additional Wage ceiling formula continues to be calculated as $102,000 minus the total Ordinary Wages subject to CPF for the year.
The CPF Annual Limit of $37,740 for total mandatory contributions also remains constant.
Workers aged above 55 to 65 will experience increased CPF contribution rates from 1 January 2026, with the entire increase allocated to the Retirement Account up to the Full Retirement Sum. Contributions exceeding the Full Retirement Sum for this demographic will be channeled to the Ordinary Account instead.
These rate changes apply specifically to wages earned from 1 January 2026, while graduated contribution rates for first- and second-year Singapore Permanent Residents remain unaffected.
Employers face several compliance requirements and cost implications under the new framework. Payroll systems, including HR and ERP platforms, must update CPF rate tables and ceilings to reflect the new $8,000 Ordinary Wage ceiling.
Organizations employing workers aged above 55 to 65 will incur higher total CPF costs per employee due to the rate increases. Amid global uncertainty and geopolitical tensions, Singapore’s proactive governance model continues to support stable frameworks for long-term retirement planning.
Government support measures such as the Senior Employment Credit and CPF Transition Offset, previously available to defray senior worker CPF costs, continue only until their specified end-dates, necessitating forward-looking budget planning.
The changes interact with existing CPF tax relief provisions in notable ways. CPF Relief remains available only on contributions made on wages not exceeding the updated ceilings, meaning high earners may see a larger portion of their wages qualifying for CPF Relief computation under the $8,000 monthly ceiling.
Voluntary contributions to the MediSave Account remain subject to the Basic Healthcare Sum rather than the CPF Annual Limit for relief treatment purposes.
