CPF Contribution Changes from 1 January 2026 — Key Updates for Employers & Employees
Singapore will implement changes to CPF contribution rules starting 1 January 2026, affecting both senior workers and overall payroll planning.
Key CPF Updates
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The CPF Ordinary Wage ceiling will increase from S$7,400 to S$8,000, meaning a larger portion of monthly wages will be subject to CPF contributions.
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For employees aged 55–60, the total CPF rate will rise from 32.5% to 34%.
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For employees aged 60–65, the total rate will increase from 23.5% to 25%.
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The additional contributions for senior workers will go towards building up their Retirement Account (RA), helping strengthen long-term retirement adequacy.
What This Means for Employees
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Senior workers will enjoy higher retirement savings, especially for those still growing their RA balances.
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There may be a slight reduction in take-home pay due to higher employee CPF deductions.
What This Means for Employers
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Companies should expect higher CPF outlay, especially for:
✔ senior workers aged 55–65
✔ employees earning near or above the revised S$8,000 wage ceiling -
It is important to update budget forecasts and payroll costing for FY2026.
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Payroll systems, HR templates, and employment cost calculations should be adjusted to reflect the new rates and ceiling.