Starting 1 January 2026, the Central Provident Fund (CPF) contribution framework will undergo key updates that impact both employers and employees in Singapore.
Here’s what you need to know:
1️⃣ Increase in CPF Ordinary Wage Ceiling
The CPF Ordinary Wage (OW) ceiling will be raised — meaning a higher portion of monthly wages will now be subject to CPF contributions. This ensures that employees continue to build their retirement savings in line with rising income levels.
However, there’s no change to:
- The CPF annual salary ceiling, which remains at $102,000
- The Additional Wage ceiling, which stays at [$102,000 – Total Ordinary Wages subject to CPF for the year]
- The CPF Annual Limit, which remains $37,740
2️⃣ Increase in CPF Contribution Rates for Senior Workers
Employees aged above 55 to 65 will see higher CPF contribution rates, aimed at boosting their long-term retirement adequacy.
This adjustment continues Singapore’s multi-year effort to strengthen the retirement readiness of mature workers while aligning employer obligations.
3️⃣ What Employers Should Do
- Update your payroll systems to reflect the new OW ceiling and contribution rates.
- Inform affected employees of how the change impacts their CPF contributions.
- Refer to CPF’s official tables for detailed contribution and allocation rates.
📎Reference:
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