Higher CPF monthly salary ceilings, CPF contribution rates and other changes from 2026

SINGAPORE – Higher Central Provident Fund wage ceilings and contribution rates are on the horizon from the start of 2026 to ensure that people have enough funds to build up their retirement adequacy.

The CPF ordinary wage ceiling

will be raised from $7,400 to $8,000 from Jan 1, 2026.

The ceiling limits the amount of salary that CPF contributions can be calculated from in a month for all employees.

The $600 rise in the ceiling marks the last round of increases based on a schedule that started since Sept 1, 2023, to allow employers and employees to adjust to the changes. The increases are aimed at keeping pace with rising wages.

But there will be no change to the CPF annual salary ceiling of $102,000 – the maximum amount in wages for the year on which CPF contributions can be made.

This includes an employee’s ordinary wages and additional wages.

The CPF annual limit – the amount in contributions that can be made – also remains at $37,740.

CPF contribution rates for senior workers will also be raised from 2026 to strengthen their retirement adequacy.

From Jan 1, the CPF contribution rates for employees over 55 years old to 60 years old will be increased from 32.5 per cent to 34 per cent of the total wage. For the employee’s contribution, the increase will be from 17 per cent to 18 per cent in 2026.

Meanwhile, the CPF contribution rates for workers over 60 years old to 65 years old will be raised from 23.5 per cent to 25 per cent of the total wage. For the employee’s contribution, the increase will be from 11.5 per cent to 12.5 per cent in 2026.

For the cohort that turns 55 in 2026, the full retirement sum – or FRS – will also increase by about 3.5 per cent. It was $213,000 in 2025, but will be $220,400 in 2026.

The FRS is an ideal reference point of how much one needs in retirement, according to the CPF Board website. It depends on the year a person turns 55 and will remain the same for life.

This increase in FRS means that the basic retirement sum (BRS) and enhanced retirement sum (ERS) will also go up.

In 2026, the BRS will be $110,200, which is half of the FRS. The BRS provides monthly payouts for basic living needs, excluding rental expenses.

The ERS will be $440,800, which is twice the FRS for that year. This is the maximum amount that members aged 55 and above can top up their retirement accounts to in 2026.

The year will also see the Matched Retirement Savings Scheme expanded to include younger Singaporeans with disabilities.

The scheme is designed to help senior Singapore citizens with lower retirement savings by providing a dollar-for-dollar matching grant.

Extending this scheme to persons with disabilities will help them to start building up their retirement savings earlier through cash top-ups to the CPF Special Account, said the board.

Eligible persons with disabilities can receive a dollar-for-dollar matching grant of up to $2,000 a year, with a lifetime limit of $20,000 from the Government.

Those below 55 years old will need to have their status verified with the Ministry of Social and Family Development by Nov 1 of the current year to be considered eligible for the scheme the following year.

Other criteria such as CPF balances, monthly income and the annual value of their residential property will also apply.

In 2026, a new scheme called the Matched MediSave Scheme will also kick in for a period of five years.

The scheme helps Singapore citizens aged 55 to 70 with lower MediSave savings to boost their healthcare savings by matching voluntary cash top-ups made to their MediSave Account.

Under the scheme, the Government will match every dollar of cash top-up to the MediSave Account of eligible CPF members, up to an annual cap of $1,000.

The matching grant by the Government will be disbursed to eligible members in the following year.

The increase in MediSave savings will help eligible members pay for insurance premiums and approved medical treatments, CPF Board said.