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CPF Contribution Changes from 1st January 2026

Learn about the CPF updates effective 1st January 2026, including increases to the Ordinary Wage (OW) ceiling and revised CPF contribution rates for employees aged above 55 to 65. Understand the updated limits, contribution allocations, and key changes for employers and HR teams.

The Central Provident Fund (CPF) will introduce key updates in 2026 to enhance retirement adequacy for employees. These updates include an increase in the CPF Ordinary Wage (OW) ceiling and revised contribution rates for employee aged above 55 to 65. Below is a clear breakdown of the upcoming changes.

1. Increase in CPF Ordinary Wage (OW) Ceiling from 1 January 2026

1.1 Overview of the OW Ceiling

The CPF Ordinary Wage ceiling determines the maximum amount of monthly wages that attract CPF contributions. To align with rising income levels, this ceiling will increase from $7,400 to $8,000 starting 1 January 2026.

This marks the final step in the scheduled increments that began on 1 September 2023, allowing employers and employees time to adjust gradually.

1.2 No Change to Annual Salary Ceiling

The CPF annual salary ceiling remains unchanged at $102,000, covering all wages within a calendar year—including both Ordinary Wages (OW) and Additional Wages (AW).

1.3 No Change to Additional Wage Ceiling and CPF Annual Limit

  • AW ceiling: Still calculated as
    $102,000 − Total OW subject to CPF for the year

  • CPF Annual Limit: Remains $37,740

1.4 Schedule of Increases (2023–2026)

 

2. Increase in CPF Contribution Rates from 1 January 2026

2.1 Higher Contribution Rates for Employees Aged Above 55 to 65

To support better retirement savings, CPF contribution rates will increase for employees aged above 55 to 65. These changes apply to wages earned from 1 January 2026.

2.2 Updated CPF Contribution Rates (Monthly Wages > $750)

 

2.3 Allocation of Additional Contributions

For affected age groups, the additional CPF contributions will be fully allocated to the Retirement Account (RA), up to the Full Retirement Sum (FRS).
If the FRS has already been met, contributions will be channelled to the Ordinary Account (OA).

2.4 Continued Phasing for Employees Earning $500–$750

Employees earning between $500 and $750 will continue to follow the phased-in employee contribution rates.

2.5 No Changes for New Singapore Permanent Residents (SPRs)

Graduated contribution rates for first- and second-year SPRs remain unchanged.

 

3. Additional Resources

 

Suggested FAQs

1. What is the CPF Ordinary Wage (OW) ceiling?

It is the maximum monthly wage amount that CPF contributions can be applied to.

2. Why is the CPF OW ceiling increasing in 2026?

To match rising wage levels and improve long-term retirement savings adequacy.

3. Does the CPF annual salary ceiling change in 2026?

No, it remains at $102,000.

4. Who is affected by the CPF contribution rate increase?

Employees aged above 55 to 65 and their employers.

5. Where will the additional CPF contributions be allocated?

The additional amount will go entirely to the Retirement Account (RA), up to the Full Retirement Sum (FRS).

6. Are there changes for employees earning below $750?

Contribution rates for employees earning $500–$750 will continue to be phased in.

7. Are Singapore Permanent Residents affected by these changes?

No, the graduated contribution rates for new SPRs remain unchanged.

 

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