Singapore Payroll Changes - 2026

1. 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.

1. 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).

(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.