KEY HIGHLIGHTS
- CPF changes kick in from 1 January 2026, affecting salaries and take-home pay in Singapore
- CPF Ordinary Wage ceiling rises to S$8,000, the final step in a multi-year increase
- Higher CPF rates for workers aged 55 to 65, with more savings going into retirement
From 1 January 2026, both employees and employers in Singapore will see updates to CPF wage limits and contribution rates. Some people will bring home slightly less cash each month, but there’s a long-term upside if you’re nearing retirement.
CPF Contribution Changes 2026
| CPF Item | Current (2025) | From 1 Jan 2026 | What It Means |
|---|---|---|---|
| CPF Ordinary Wage (OW) Ceiling | S$7,400 | S$8,000 | More of your salary attracts CPF |
| CPF Annual Salary Ceiling | S$102,000 | No change | Max CPF for the year stays capped |
| CPF Annual Limit | S$37,740 | No change | Total CPF limit unchanged |
| CPF Rates (Age 55–60) | 32.5% | 34% | Higher employer + employee contribution |
| CPF Rates (Age 60–65) | 23.5% | 25% | More savings for retirement |
What’s Changing With the CPF Ordinary Wage Ceiling
The CPF Ordinary Wage (OW) ceiling is the maximum monthly salary that CPF applies to.
From 1 January 2026, this ceiling goes up to S$8,000, from S$7,400 today.
This is the final step of a gradual increase that started back in September 2023.
Why this matters
If you earn more than S$7,400 a month, a bigger portion of your salary will now go into CPF.
That means:
- Slightly lower take-home pay
- Higher CPF savings for housing, healthcare, and retirement
For most Singaporeans earning below S$7,400, honestly speaking, no impact at all.
Annual CPF Limits Stay the Same
Good news — not everything is going up.
There is no change to:
- CPF Annual Salary Ceiling: S$102,000
- CPF Annual Limit: S$37,740
- Additional Wage (AW) ceiling formula
So even if your monthly CPF increases, your total CPF for the year is still capped.
CPF Contribution Rates Going Up for Older Workers
This one affects workers aged above 55 to 65.
From 1 January 2026, CPF contribution rates will increase to strengthen retirement savings.
Updated CPF contribution rates (monthly wages above S$750)
- 55 & below: stays at 37%
- Above 55 to 60: rises to 34% (+1.5%)
- Above 60 to 65: rises to 25% (+1.5%)
- Above 65: no change
Both employers and employees will share this increase.
Where does the extra CPF go?
The additional CPF for those aged 55 to 65 will go into the Retirement Account (RA) first, up to the Full Retirement Sum (FRS).
Already hit FRS?
Then the extra CPF flows into your Ordinary Account (OA) instead.
This is meant to help older workers build stronger retirement payouts later on.
What About Lower-Wage Workers and PRs?
A few important points not to miss:
- Employees earning S$500 to S$750 will continue with phased CPF rates
- No changes to graduated CPF rates for:
- First-year PRs
- Second-year PRs
- CPF rules remain the same whether you’re in heartland jobs or CBD roles
If you’re unsure, the Central Provident Fund calculator is still the easiest way to double-check numbers.
So… Should You Be Worried?
For younger workers, this is mostly a non-event.
For those earning higher salaries or aged 55 to 65, expect:
- Slightly lower cash take-home
- Better long-term retirement savings
Worth it or not?
For most Singaporeans planning to retire here — yes.
Frequently Asked Questions
Will my take-home pay drop in 2026?
If you earn above S$7,400, yes — slightly. More of your salary will go into CPF due to the higher OW ceiling.
Does this affect bonuses or AWS?
No change to the CPF annual salary ceiling of S$102,000. Bonuses are still subject to the same Additional Wage rules.
Are employers paying more CPF?
Yes. Employers will contribute more for workers aged 55 to 65, sharing the increase with employees.
Join