Singapore CPF Contribution Changes from 1 January 2026: Key Updates for Global Employers

Written by activpayroll | Jul 30, 2025 3:27:59 PM

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.

Next Steps

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