KEY HIGHLIGHTS
- CPF monthly salary ceiling rises to S$8,000 from Jan 2026
- New MediSave matching and higher CPF rates for seniors aged 55–70
- FRS increases to S$220,400, affecting those turning 55 in 2026
CPF changes are coming again — and this time, they affect both your take-home pay and retirement savings.
From fresh grads to seniors planning payouts, the 2026 updates will quietly shift how much goes into CPF every month. Some will feel it immediately. Others will only appreciate it years later.
Here’s the clear, no-nonsense breakdown — kopi break friendly.
New S$8,000 Salary Ceiling
| CPF Change Area | What’s Changing in 2026 | Who It Affects |
|---|---|---|
| Monthly Salary Ceiling | Increased to S$8,000 | Workers earning S$7,400–S$8,000 |
| Senior CPF Rates | +1.5% total contribution | Ages 55–65 |
| MRSS Expansion | Covers PWDs of all ages | Persons with disabilities |
| Matched MediSave (MMSS) | Dollar-for-dollar up to S$1,000/year | Ages 55–70 |
| Retirement Sums | FRS: S$220,400, ERS: S$440,800 | Future retirees |
CPF Monthly Salary Ceiling Will Rise to S$8,000
From 1 January 2026, CPF contributions will apply to monthly wages up to S$8,000.
This is the final step announced back in Budget 2023.
If your salary is between S$7,400 and S$8,000, expect a slightly lower take-home pay. No sugar-coating here.
But there’s a plus.
Your employer also contributes more, so your total compensation actually increases.
For workers below 55:
- Take-home pay (example): S$6,400
- Total pay incl. employer CPF: S$9,360
No changes to:
- Annual salary ceiling: S$102,000
- CPF annual limit: S$37,740
Higher CPF Contribution Rates for Senior Workers
Good news for older workers.
From 2026, CPF contribution rates for those aged 55–65 will rise by 1.5% in total.
Ages 55–60
- Employer: 16%
- Employee: 18%
- Total: 34%
Ages 60–65
- Employer: 12.5%
- Employee: 12.5%
- Total: 25%
These extra contributions go into the Retirement Account (RA).
If RA is already full, it flows into OA instead.
For employers:
The CPF Transition Offset (CTO) will continue to help cushion higher costs.
MRSS Expanded to Persons With Disabilities
From 1 January 2026, the Matched Retirement Savings Scheme (MRSS) gets broader.
What’s new:
- Covers persons with disabilities (PWDs) of any age
- PWDs below 55 can receive matching for SA top-ups
- Contributions can come from family, employers, or organisations
More flexibility. More long-term security.
New Matched MediSave Scheme (MMSS)
This is one of the most practical changes for seniors.
From 2026 to 2030, the Government will:
- Match S$1 for every S$1 topped up into MediSave
- Capped at S$1,000 per year
Who qualifies
You must:
- Be a Singapore Citizen aged 55–70
- Own one property with AV ≤ S$21,000
- Earn ≤ S$4,000/month
- Have MediSave below half the Basic Healthcare Sum
No application needed.
Eligibility is checked automatically each year, with matching paid the following year.
Honestly speaking, this helps most for seniors worried about future medical bills.
FRS Will Rise to S$220,400 in 2026
If you’re turning 55 in 2026, take note.
The Full Retirement Sum (FRS) increases by about 3.5% to S$220,400.
That means:
- BRS: S$110,200
- ERS: S$440,800
Your FRS is locked in the year you turn 55.
So this figure only applies to those reaching 55 in 2026.
ERS Increase Means Higher CPF LIFE Payouts
The Enhanced Retirement Sum (ERS) will rise to S$440,800.
Unlike FRS, ERS:
- Is not age-dependent
- Can be topped up anytime
Higher ERS = higher CPF LIFE monthly payouts later.
For many Singaporeans, this matters as living longer also means planning longer.
Silver Housing Bonus Gets a Boost
For seniors thinking of right-sizing, there’s extra support.
From 1 December 2025:
- Top up to S$60,000 of housing proceeds into RA to qualify
- Move to 2-room or smaller flat → bonus increases to S$40,000
- Seniors downsizing from private homes (AV S$21,000–S$31,000) can get up to S$20,000
More flexibility, without weakening retirement plans.
MediSave & MediShield Life Enhancements
Healthcare costs remain a big worry — and some limits are going up.
From 2026:
- Flexi-MediSave: S$300 → S$400
- MediSave scans: S$300 → S$600
Dental coverage (mid-2026)
Flexi-MediSave will cover selected treatments:
- Permanent crowns
- Root canal treatments
Available at CHAS clinics and public institutions.
Fertility preservation support (from June 2026)
MediSave and MediShield Life will cover:
- Egg freezing
- Embryo freezing
- Ovarian tissue freezing
For patients undergoing medical treatment that risks permanent infertility.
Frequently Asked Questions
1. Will my take-home pay drop in 2026?
If you earn above S$7,400, yes — slightly. But your total pay including employer CPF increases.
2. Does the CPF annual limit change?
No. It stays at S$37,740.
3. How do I know if I qualify for MMSS?
CPF checks automatically each year and will inform you if you qualify.
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