Singapore’s Central Provident Fund (CPF) system will undergo significant updates from 1 January 2026, impacting payroll operations and retirement planning for employers with Singapore-based employees. These changes reflect the government’s ongoing efforts to align CPF policies with wage growth and strengthen retirement adequacy -particularly for older workers.
Increase in CPF Ordinary Wage Ceiling
To keep pace with rising wages, the CPF Ordinary Wage (OW) ceiling—which caps the monthly salary amount subject to CPF contributions—will rise from SGD 7,400 to SGD 8,000 starting 1 January 2026. This marks the final step in a phased increase that began in September 2023.
CPF OW Ceiling Adjustment Timeline
| CPF OW ceiling | CPF annual salary ceiling | |
| From 1 Jan 2016 to 31 Aug 2023 | $6,000 | $102,000 |
| From 1 Sep to 31 Dec 2023 | $6,300 (+$300) | |
| From 1 Jan to 31 Dec 2024 | $6,800 (+$500) | |
| From 1 Jan to 31 Dec 2025 | $7,400 (+$600) | |
| From 1 Jan 2026 | $8,000(+$600) |
No changes will be made to the CPF annual salary ceiling (SGD 102,000), Additional Wage ceiling, or CPF Annual Limit (SGD 37,740).
CPF Contribution Rate Increases for Older Employees
To enhance retirement savings, CPF contribution rates for employees aged 55 to 65 will increase from 1 January 2026. These changes apply to employees earning monthly wages above SGD 750.
Updated CPF Contribution Rates
For employees earning monthly wages > $750
| Employee's age (years) | 2025 |
CPF Contribution Rates from 1 Jan 2026 | ||
| Total % wage | Total % wage | By Employer % of wage | By Employer % of wage | |
| 55 and below | 37 | 37 | 17 | 20 |
| Above 55 to 60 | 32.5 | 34 (+1.5) | 16 (+0.5) | 18 (+1) |
| Above 60 to 65 | 23.5 | 25 (+1.5) | 12.5 (+0.5) | 12.5 (+1) |
| Above 65 to 70 | 16.5 | 16.5 | 9 | 7.5 |
| Above 70 | 12.5 | 12.5 | 7.5 | 5 |
- The additional contributions for employees aged 55–65 will be fully allocated to the Retirement Account (RA), up to the Full Retirement Sum (FRS). Excess contributions will flow into the Ordinary Account.
- Employees earning SGD 500–750 monthly will continue to see phased-in employee contribution rates.
- No changes apply to Singapore Permanent Residents (SPRs) in their first or second year of residency.
What This Means for Global Employers
- Payroll systems must be updated to reflect the new OW ceiling and contribution rates.
- Budget planning should account for higher employer CPF contributions, especially for senior employees.
- Employee communications will be key to helping staff understand the impact on take-home pay and retirement savings.
- Mobility programs may need to reassess cost projections for Singapore-based assignments.
These CPF updates signal Singapore’s commitment to retirement adequacy and wage alignment. For global employers, proactive planning will ensure compliance and smooth transitions into 2026.
Singapore - Global Insights
For further detailed guidance on payroll, employment law, and compliance in Malaysia, visit our Singapore Global Insight guide on the activpayroll website. You can also explore broader regional updates and expertise in the APAC Global Expertise web section.
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