Central Provident Fund (CPF) - ST PHOTO: KUA CHEE SIONG
SINGAPORE: Higher Central Provident Fund (CPF) 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 S$7,400 to S$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 S$600 rise in the ceiling marks the last round of increases based on a schedule that started on 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 S$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 S$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% to 34% of the total wage. For the employee’s contribution, the increase will be from 17% to 18% in 2026. The rates for workers over 60 to 65 years old will be raised from 23.5% to 25% of the total wage. — The Straits Times/ANN
