CPF ordinary wage ceiling increase
Effective: 1 January 2026
Impact
Monthly CPF Ordinary Wage (OW) ceiling increases from S$7,400 to S$8,000.More of an employee’s monthly salary will be subject to CPF contributions. Impact
Higher CPF contributions for employees earning above the old ceiling. Both employer and employee contribution amounts will increase. Payroll systems and cost projections must be updated to reflect the new ceiling. CPF contribution rate changes for senior workers
Effective: 1 January 2026
Impact
CPF contribution rates increase for employees aged above 55 to 65 earning more than S$750/month. Total CPF rates will rise by 1.5 percentage points (shared by employer + employee). Age group
2025 total CPF
2026 total CPF
Above 55–60
32.5%
34%
Above 60–65
23.5%
25%
(No rate changes for employees ≤55 or >65.)
Impact on Payroll
Slight increase in employer CPF costs for employees aged 55–65.Payroll systems must update age-based percentage calculations. Affected employees gain higher retirement savings due to increased allocations. 
