KEY HIGHLIGHTS
- CPF monthly salary ceiling rises to S$8,000 from Jan 1, 2026
- Senior workers get higher CPF contribution rates and retirement sums
- Bigger CPF savings, but higher monthly deductions for some Singaporeans
CPF is changing again — and this time, it will affect your monthly take-home pay and long-term retirement savings.
From 1 January 2026, both CPF salary ceilings and contribution rates will go up. Some will feel it immediately in their payslip. Others will see bigger payouts much later.
So… worth it or not? Let’s break it down.
CPF monthly salary ceiling goes up to S$8,000
The CPF Ordinary Wage ceiling will rise from S$7,400 to S$8,000.
That means CPF contributions will now apply to a higher portion of your monthly salary.
This is the final step of a phased increase that started in September 2023, meant to keep up with rising wages.
For higher-income earners, this translates to more CPF deducted each month, but also more saved for housing, healthcare and retirement.
What stays the same (important)
Not everything is changing.
Here’s what remains unchanged in 2026:
- CPF annual salary ceiling: S$102,000
- CPF annual contribution limit: S$37,740
So even if your income is higher, CPF contributions won’t exceed these annual caps.
| CPF Item | 2025 | From Jan 1, 2026 |
|---|---|---|
| Monthly salary ceiling | S$7,400 | S$8,000 |
| Annual salary ceiling | S$102,000 | No change |
| Annual contribution limit | S$37,740 | No change |
Higher CPF contribution rates for older workers
Senior workers will see higher CPF contribution rates from 2026, aimed at boosting retirement adequacy.
Age 55 to 60
- Total CPF contribution: from 32.5% → 34%
- Employee share: from 17% → 18%
Age 60 to 65
- Total CPF contribution: from 23.5% → 25%
- Employee share: from 11.5% → 12.5%
Honestly speaking, this means slightly less take-home pay now, but more CPF savings later — especially helpful if you’re still working past 55.
Retirement sums will increase again in 2026
If you turn 55 in 2026, your CPF retirement targets are going up.
- Full Retirement Sum (FRS): S$220,400
(up from S$213,000 in 2025 — about 3.5% higher)
The FRS is set for life based on the year you turn 55.
Because of this increase:
- Basic Retirement Sum (BRS): S$110,200
- Enhanced Retirement Sum (ERS): S$440,800
BRS is meant to cover basic living needs, excluding rent.
ERS is for those who want higher monthly payouts and can afford to top up more.
More support for Singaporeans with disabilities
From 2026, the Matched Retirement Savings Scheme will be expanded to include younger Singaporeans with disabilities.
Under the scheme:
- Government matches S$1 for every S$1 topped up
- Up to S$2,000 per year
- Lifetime cap: S$20,000
Top-ups go into the CPF Special Account, helping members start retirement savings earlier.
Those below 55 must have their disability status verified with the Ministry of Social and Family Development by 1 November to qualify the following year.
Other criteria like income, CPF balances and property annual value still apply.
New Matched MediSave Scheme from 2026
A brand-new scheme is also coming.
From 2026, the Matched MediSave Scheme will run for five years, targeting Singaporeans aged 55 to 70 with lower MediSave balances.
How it works:
- Government matches S$1 for every S$1 cash top-up
- Up to S$1,000 per year
- Matching amount credited the following year
This boost helps pay for insurance premiums and approved medical treatments, according to the CPF Board.
So… is this good or bad?
For most Singaporeans, it’s a trade-off.
You may bring home slightly less cash each month, especially if your pay is near or above S$8,000.
But long-term, you’re building stronger retirement and healthcare buffers — something many people underestimate until it’s too late.
No need to overthink. Just be aware, plan ahead, and adjust your budget early.
Frequently Asked Questions
Will my take-home pay drop in 2026?
If your salary is above S$7,400, yes — CPF deductions will increase slightly. Lower-income earners won’t be affected.
Does the higher FRS apply to everyone?
No. The FRS only applies based on the year you turn 55. If you already turned 55 before 2026, your FRS stays the same.
Is topping up CPF still worth it with higher limits?
For many Singaporeans, yes — especially for tax relief and higher lifelong payouts. But it depends on your cash flow and other investments.
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