Key facts at a glance
New OW ceiling
S$8,000/mo
Up from S$7,400, final phased step
55-60 combined rate
34.0%
Up 1.5 points, employer 16% / employee 18%
60-65 combined rate
25.0%
Up 1.5 points, employer 12.5% / employee 12.5%
Here's the answer before the mechanics: two CPF changes landed together on 1 January 2026. The Ordinary Wage (OW) ceiling, the monthly salary cap up to which CPF applies, rose to S$8,000/month, completing a phased increase the government announced back in Budget 2023. Separately, CPF contribution rates for workers above age 55 to 65 rose again, the final phase of a Budget 2022 plan to strengthen retirement savings for Singapore's ageing workforce.
Both changes apply only to Singapore Citizens and Permanent Residents, since CPF (Central Provident Fund) is a citizen/PR-only scheme. If you're on an Employment Pass or S Pass, neither change affects your payslip at all. If you're a Citizen or PR, especially in the 55-65 age range, these changes are worth understanding before your next payslip lands.
See exactly how the 2026 CPF rates affect your bonus.
Open the SG Bonus / AWS CalculatorThe Ordinary Wage ceiling: the final step of a phased rise
The OW ceiling is the monthly salary cap up to which CPF contributions are calculated. Salary above the ceiling is simply not CPF-subject, so it doesn't attract any employee or employer CPF at all. The government has been raising this ceiling in four steps since 2023 to keep it aligned with rising wages at the 80th percentile of CPF members' salaries, and 1 January 2026 marks the final step.
| Effective date | OW ceiling |
|---|---|
| 1 Sep 2023 | S$6,300/mo |
| 1 Jan 2024 | S$6,800/mo |
| 1 Jan 2025 | S$7,400/mo |
| 1 Jan 2026 | S$8,000/mo (final step) |
A higher OW ceiling doesn't change your CPF rate, only the amount of salary the rate applies to. A Citizen/PR earning S$8,000/month or more now has their full 20% (age ≤55) employee CPF calculated on S$96,000/year of salary, up from S$88,800/year under the 2025 ceiling.
Senior-worker rates: what changed on 1 January 2026
Separately, Budget 2022 set out a multi-year plan to raise CPF contribution rates for workers above age 55, closing the gap toward the below-55 rate over time. Here is what landed on 1 January 2026 (this is not the end of the road: the same bands rise again in 2027, covered further down):
| Age band | Employer (2025 → 2026) | Employee (2025 → 2026) | Total 2026 |
|---|---|---|---|
| Above 55 to 60 | 15.5% → 16.0% | 17.0% → 18.0% | 34.0% |
| Above 60 to 65 | 12.0% → 12.5% | 11.5% → 12.5% | 25.0% |
Both increases apply to wages exceeding S$750/month. The additional contribution amount flows entirely into the Retirement Account (RA), up to the Full Retirement Sum (FRS), rather than being split with the Ordinary and Special Accounts as usual, so it's specifically earmarked to boost retirement adequacy rather than everyday CPF liquidity.
What changes again on 1 January 2027
2026 was not the last step for senior workers. The CPF Board has confirmed a further increase from 1 January 2027 for the same above-55-to-65 bands: the 55-to-60 combined rate goes to 35.5% and the 60-to-65 combined rate goes to 26%. The Ordinary Wage ceiling is a different story: it finished its phased climb at S$8,000/month in 2026, and no further ceiling rise is currently scheduled.
| Age band | Total 2026 | Total 2027 | 2027 split | Change |
|---|---|---|---|---|
| Age 55 and below | 37.0% | 37.0% | 17% employer / 20% employee | No change |
| Above 55 to 60 | 34.0% | 35.5% | 16.5% employer / 19% employee | +1.5 points |
| Above 60 to 65 | 25.0% | 26.0% | 13% employer / 13% employee | +1.0 point |
| Above 65 to 70 | 16.5% | 16.5% | 9% employer / 7.5% employee | No change |
| Above 70 | 12.5% | 12.5% | 7.5% employer / 5% employee | No change |
Rates apply to wages exceeding S$750/month. As in 2026, the additional contribution for the 55-to-65 bands is allocated entirely to the Retirement Account, up to the Full Retirement Sum. Employment Pass and S Pass holders stay at 0% CPF throughout, since the scheme remains Citizen/PR-only.
Don't confuse the OW ceiling with the AW (bonus) ceiling
The OW ceiling rising to S$8,000/month is a separate number from the S$102,000 annual Additional Wage (AW) ceiling that caps how much of your bonus attracts CPF. The AW ceiling formula itself hasn't changed, S$102,000 minus your year's CPF-subject Ordinary Wages, and neither has the S$102,000 figure. What changed is how much of it your salary eats first. A Citizen or PR at the full ceiling now has S$96,000 of CPF-subject Ordinary Wages rather than S$88,800, so the AW headroom left for a bonus drops from S$13,200 to S$6,000. If your base salary sits below S$7,400/month, nothing about your bonus headroom changed.
Employers: budget for a higher employer CPF cost too
Both changes raise the employer's CPF bill, not just the employee's: the higher OW ceiling means more salary is CPF-subject at the same 17% employer rate, and the senior-worker rate increases add another 0.5 percentage points of employer contribution for staff aged above 55 to 65. Model the full employer-side cost, including CPF, SDL, and any foreign-worker levies, on the Singapore Employer Cost of Hiring Calculator.
Model your 2026 CPF contributions
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Frequently asked questions
What changed with CPF contributions from 1 January 2026?
Two separate changes landed on the same date. First, the Ordinary Wage (OW) ceiling rose from S$7,400/month to S$8,000/month, the final step of a phased increase announced in Budget 2023. Second, employer and employee CPF contribution rates for workers above age 55 to 65 rose further, part of a multi-year plan from Budget 2022 to close the retirement savings gap for older workers.
What is the new CPF Ordinary Wage ceiling for 2026?
S$8,000 per month (S$96,000 per year), up from S$7,400/month in 2025. This is the monthly wage cap up to which CPF contributions are calculated on your Ordinary Wages (regular monthly salary). Any salary above S$8,000/month is not subject to CPF at all, so higher earners see their CPF contribution plateau at this cap.
How much more will senior workers (55-65) contribute in 2026?
For the above-55-to-60 age band, the combined employer/employee rate rose to 34% of wages (up 1.5 percentage points), split as 16% employer (up 0.5 points) and 18% employee (up 1 point). For the above-60-to-65 band, the combined rate rose to 25% (up 1.5 points), split as 12.5% employer (up 0.5 points) and 12.5% employee (up 1 point).
Where does the extra senior-worker CPF contribution go?
Straight into the Retirement Account (RA), up to the Full Retirement Sum (FRS), rather than being split across the Ordinary and Special Accounts as normal contributions are. If a senior worker has already hit their FRS in their RA, the increased contribution is redirected to their Ordinary Account instead.
Does the OW ceiling increase affect the Additional Wage (AW) ceiling for bonuses?
No, they're separate mechanisms. The AW ceiling formula, S$102,000 minus your year's CPF-subject Ordinary Wages, is unchanged by the OW ceiling rising to S$8,000/month, and the S$102,000 figure itself has not moved. What does change is how much of that S$102,000 your salary uses up first. A Citizen/PR earning S$8,000/month or more now has S$96,000 of CPF-subject Ordinary Wages instead of S$88,800 under the 2025 ceiling, so the AW headroom left for a bonus shrinks from S$13,200 to S$6,000. Only your actual OW subject to CPF drives this: if your base salary sits below S$7,400/month, the higher ceiling doesn't touch your AW headroom at all.
Does this affect Employment Pass or S Pass holders?
No. Both the OW ceiling change and the senior-worker rate increases apply only to CPF contributions, which are made exclusively by Singapore Citizens and Permanent Residents. Employment Pass and S Pass holders pay 0% CPF regardless of these changes, at any age. The same is true of the further senior-worker increases landing on 1 January 2027: they don't touch an EP or S Pass payslip either.
Is this the last planned increase, or will rates keep rising after 2026?
The two changes have different answers. The Ordinary Wage ceiling completed its final phased step at S$8,000/month on 1 January 2026, and no further OW ceiling rise is currently scheduled. Senior-worker contribution rates, though, do rise again on 1 January 2027: the above-55-to-60 combined rate goes from 34% to 35.5% (16.5% employer, 19% employee) and the above-60-to-65 combined rate goes from 25% to 26% (13% employer, 13% employee). The age-55-and-below (37%), above-65-to-70 (16.5%) and above-70 (12.5%) bands are unchanged in 2027.
What are the CPF contribution rates for 2027?
From 1 January 2027, for wages exceeding S$750/month: 37% combined for age 55 and below (17% employer, 20% employee, unchanged), 35.5% for above 55 to 60 (16.5% employer, 19% employee, up 1.5 points), 26% for above 60 to 65 (13% employer, 13% employee, up 1 point), 16.5% for above 65 to 70 (unchanged) and 12.5% above 70 (unchanged). As in 2026, the increase for the 55-to-65 bands is allocated entirely to the Retirement Account up to the Full Retirement Sum. Employment Pass and S Pass holders remain at 0% CPF in 2027, since the scheme stays Citizen/PR-only.
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