With a view to helping individuals save more for the time they will not work, Singapore’s Central Provident Fund (CPF) will be undergoing changes effective January 2026. New contribution rates for senior workers and a monthly salary ceiling that is more generous are among the significant changes.
Such changes are necessary now as…
Higher Salary Ceiling from January
From January 1, 2026, the Ordinary Wage ceiling will be raised from S$7,400 to S$8,000.
This is the last milestone in a step-by-step hike.
Anyone whose salary is more than S$7,400 will see extra contributions for the additional amount, which will eventually increase his/her CPF balance.
Rise in Rates for Staff 55-65 Years Old
The total CPF contribution rates for employees between 55 and 65 will be increased by 1.5 percentage points.
The share of the employer will increase by 0.5%, and of the employee by 1%.
The increment will go to Retirement Account till the Full Retirement Sum is reached.
Why the New Rules Are Supporting Retirement
More funds in the CPF account will lead to higher safe interest and bigger monthly payouts so on and so forth.
Working seniors get faster savings built up for their peace of mind.
Employer Support
The government is giving a half-offset of the contributor’s extra in 2026 under the CPF Transition Offset program.
Thus the cost relief will also act as a catalyst in “hiring experienced employees”.
Annual Limits Not Changed
- Here, S$102,000 is the maximum salary for the year, while S$37,740 is the annual limit for contributions.
- The emphasis still continues on monthly ordinary wages.
Benefits According to Three Age Groups
- Young workers will benefit from the increased ceiling if their salaries are high.
- Retired workers will receive a direct increase in their pension funds.
Key Changes Comparison
This is a summary table of major updates:
| Change | Before 2026 | From 1 Jan 2026 |
|---|---|---|
| Monthly Salary Ceiling | S$7,400 | S$8,000 |
| Total Rate (Aged 55-60) | 32.5% | 34% |
| Total Rate (Aged 60-65) | 23.5% | 25% |
| Employer Offset | Partial previous | Half of increase in 2026 |
| Allocation of Extra | Standard | Fully to Retirement Account |
How to Prepare
Be sure to look over your payments for the month of January for any changes.
Also, you may like to make use of CPF calculators to find out what the long-term impact is.
The upcoming CPF amendments in Singapore for 2026 featuring a fresh S$8,000 limit and raised senior rates will fortify the safety of retirement savings amidst the rise of wages.
You can always log in to cpf.gov.sg to view your account, run projections or plan voluntary top-ups. Do not hesitate to start reaping the benefits of these changes now!