The Central Provident Fund (CPF) system has undergone a series of changes in recent years as part of the Government’s policy objective to strengthen retirement adequacy, while balancing the impact of take-home pay and business costs. These adjustments include incremental increases to the CPF monthly Ordinary Wage (OW) ceiling and changes to contribution rates for older workers.
The most significant change in 2026 is the monthly OW ceiling reaching $8,000 (up from $7,400 in 2025). This is the final target following increases to the OW ceiling that were implemented progressively since 2023 to keep pace with rising salaries and to help middle-income Singaporeans save more for their retirement.
Concurrently, CPF contribution rates for employees aged above 55 to 65 have been adjusted as part of the Government’s ongoing efforts to support longer working lives and help older Singaporeans save more for retirement.
This article will cover:
- The key CPF changes for 2026 and their implications for employers as well as employees
- How the CPF changes would impact platform and gig workers, and part-time or lower-income workers
- The new savings schemes in 2026
What are the Key CPF Changes for 2026 and Their Implications for Employers as well as Employees?
Salary ceiling changes
On 1 January 2026, the CPF monthly OW ceiling was raised from $7,400 to $8,000. The OW ceiling is the maximum amount of monthly salary that is subject to mandatory CPF contributions. Any portion of the monthly salary above the OW ceiling does not attract CPF contributions.
This change only affects the monthly CPF contribution of workers earning more than $7,400 a month. Those earning below $7,400 a month will see no change to their CPF contributions in 2026 if their salary does not change.
Example A:
40-year-old Alex makes $7,500 a month. In 2025, only $7,400 of his salary attracted CPF contributions. This means he had to contribute 37% x $7,400 = $2,738 to CPF, where 37% is the total percentage contributed by the employer and employee.
Now in 2026, the whole of his $7,500 monthly salary attracts monthly CPF contributions. This means he would have to contribute 37% x $7,500 = $2,775 to CPF in 2026.
Example B:
40-year-old Carol makes $20,000 a month. In 2025, only $7,400 of her salary attracted CPF contributions. This means she had to contribute 37% x $7,400 = $2,738 to CPF.
Now in 2026, $8,000 of her monthly salary attracts monthly CPF contributions. This means she would have to contribute 37% x $8,000 = $2,960 to CPF in 2026.
Do note that there have been no changes to the CPF annual salary ceiling ($102,000) and the CPF Annual Limit ($37,740). This means that workers earning $7,400 a month, but who receive a variable bonus that may result in an average annual wage above $8,000, will not see a change in their total CPF contributions in 2026.
To help you understand this, consider the example below:
In 2025, Bella makes $8,000 a month. This means her total OW that attracted CPF contributions would be $7,400 x 12 = $88,800 in 2025. This is because the OW was capped at $7,400 in 2025.
In 2025, she received a 2-month bonus of $15,000. This brings her total annual wage to $7,400 × 12 + $15,000 = $103,800, which is an average monthly wage of $8,650 – above $8,000. However, since the CPF annual salary ceiling is $102,000, the part of her bonus that attracted CPF contributions is capped at $102,000 – $88,800 = $13,200. In total, only $102,000 of her salary and bonus attracted CPF contributions.
In 2026, assuming her monthly salary and bonus do not change, the total OW that will attract CPF contributions will be $8,000 x 12 = $96,000. This is because the OW is capped at $8,000 in 2026.
Accordingly, less of her $15,000 bonus will attract CPF contributions. The part of her bonus that will attract CPF contributions will be $102,000 – $96,000 = $6,000. This means that in total, a maximum of $102,000 of her salary and bonus will attract CPF contributions – the same as in 2025 – since the CPF annual salary ceiling did not change.
If more of your salary is subject to CPF, your take-home pay will be slightly reduced. However, the money that is contributed to CPF can be used for retirement, housing, and healthcare needs in the future. This ensures that employees can enjoy a growth in retirement savings rather than consuming their current income each month.
Contribution rate adjustments
Since 1 January 2026, contribution rates have also been increased for employees aged above 55 to 65 and their employers as well. The table below shows the new rates in 2026 and the changes in brackets:
| Employee’s age (years) | 2025 | CPF Contribution Rates from 1 Jan 2026 | ||
| Total (% of wage) |
Total (% of wage) |
By employer (% of wage) |
By employee (% 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 rates have been increased to reflect Singaporeans’ longer life expectancy and extended working lives. By increasing CPF contributions during later years of employment, older workers can build up higher retirement savings as they near their retirement age.
To help you understand this, consider the example below:
Benjamin is 56 years old. Following the 2025 rates, 32.5% (total percentage contributed by employer and employee) of his eligible salary would have been contributed to CPF. With the changes in 2026, 34% (total percentage contributed by employer and employee) of his eligible salary will now have to be contributed to CPF.
New Singapore Permanent Residents (SPRs) in their first two years of SPR status can choose to either contribute lower graduated rates to CPF (in line with these tables) or to contribute full CPF rates in line with Singapore citizens. If SPRs choose to contribute full CPF rates, they will have to follow the table above.
To help you understand this, consider the example below:
Amanda, who is 61 years old, just obtained her SPR status last month. She can comply with the graduated rates and contribute the 1st year SPR rates of 9% (total percentage contributed by employer and employee) to CPF.
Alternatively, if she and her employer agree to contribute full CPF rates, she will have to contribute the full rate of 25% (total percentage contributed by employer and employee) to CPF. The rate of 25% in 2026 is up from the rate of 23.5% in 2025.
For a more detailed understanding of CPF contributions, you wish to read our article on employee and employer CPF contributions.
How Would the CPF Changes Impact Platform and Gig Workers, and Part-Time or Lower-Income Workers?
CPF coverage for platform workers has progressively expanded in recent years to allow these workers to raise their total earnings and strengthen their housing and retirement adequacy. This is so that these workers are supported despite their inconsistent income streams.
Platform workers are defined as those who provide ride-hail or delivery services under a platform work agreement with a Platform Operator (PO), and receive a payment or benefit, and are under the management control of the PO when providing the platform service. Workers are generally under the management control of the PO if they must abide by certain guidelines on the provision of the platform service, and if there are restrictions on the platform workers’ interactions with the service users so that the platform worker is unable to maintain them as their own clientele. For example, Grab delivery riders are considered platform workers.
From January 2026, platform workers born in or after 1995, or those who have opted in to increase their CPF contributions will have to abide by increased CPF contribution rates according to the table below.
|
|
2025 | 2026 | |||||
| Age | Platform operator’s share, up to (%) | Platform worker’s share, up to (%) | Platform operator’s share, up to (%) | Platform worker’s share, up to (%) | |||
| 35 & below | 3.5% | 10.5% | 7.0% | 13.0% | |||
| Above 35 to 45 | 3.5% | 11.5% | 7.0% | 14.0% | |||
| Above 45 to 50 | 3.5% | 12.5% | 7.0% | 15.0% | |||
| Above 50 to 55 | 3.5% | 13.0% | 7.0% | 15.5% | |||
| Above 55 to 60 | 3.5% | 13.0% | 7.0% | 15.5% | |||
| Above 60 to 65 | 3.5% | 10.5% | 7.0% | 12.5% | |||
| Above 65 to 70 | 3.5% | 10.5% | 7.0% | 9.5% | |||
| Above 70 | 3.5% | 9.0% | 7.0% | 5.5% | |||
While the higher OW ceiling primarily affects traditional employees, platform workers who are brought within CPF coverage will see higher CPF contributions if their contributable income increases.
Part-time and lower-income workers may be less affected by the OW ceiling increase itself, but may benefit from enhanced CPF savings through other schemes such as the Workfare Income Supplement (WIS). The WIS provides eligible workers with cash payments and additional CPF contributions to help them save for retirement.
For more information on phased CPF coverage for platform workers and the WIS, please visit our other article that answers FAQs on Singapore’s new laws for platform workers.
Are There Any New Savings Schemes in 2026?
One key enhancement in 2026 is the expansion of the Matched Retirement Savings Scheme (MRSS). Under the scheme, the Government matches voluntary cash top-ups made to CPF Special Accounts of those who are eligible for MRSS. Previously, the MRSS could only be enjoyed by seniors aged 55 and above with low retirement account savings and a monthly income. Now, it has been expanded to benefit Singaporeans of all ages with disabilities.
Please check the CPF website to see if you are eligible for MRSS.
In addition, a new Matched MediSave Scheme (MMSS) has been introduced in 2026 for a 5-year period to support Singapore citizens aged 55 to 70 with lower MediSave balances. Under the scheme, the Government matches voluntary cash top-ups of up to $1,000 per year made to the CPF MediSave Account for those eligible for MMSS. The scheme helps eligible members pay for approved healthcare insurance premiums and approved medical treatments by boosting their healthcare savings.
Please check the CPF website to see if you are eligible for MMSS.
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In summary, the CPF changes in 2026 reflect Singapore’s long-term approach to retirement and healthcare adequacy. The increase in the monthly OW ceiling to $8,000 means that higher-income employees and their employers contribute more to CPF.
Although increased CPF contributions may reduce take-home pay in the short term, this will result in higher retirement savings in the long term. Coupled with the compounding effects of accumulated interest on larger balances in CPF, this will help counter the adverse effects of higher long-term inflation on Singaporeans’ retirement savings. Employees can enjoy more secure futures and better afford housing, healthcare, and retirement.
If any questions or disputes arise, an employment lawyer can assist employers by advising on statutory compliance, payroll structuring, and risk management with regard to CPF obligations. For employees, a lawyer can help assess whether CPF contributions have been correctly made and advise on remedies in cases of underpayment or non-compliance.
Given the technical nature of CPF law and the financial consequences of errors, seeking timely legal advice can help both employers and employees navigate the CPF regime with clarity and confidence. You may wish to speak to an employment lawyer concerning CPF law here.
