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: the final phase for 55-65
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. 1 January 2026 is the final scheduled increase for the 55-65 age bands specifically:
| 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.
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, but because more of your salary is now CPF-subject under the higher OW ceiling, the AW headroom left over for your bonus can shrink slightly if your base salary sits near or above the new cap.
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.
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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. What does change is that a higher OW ceiling means more of your salary is now CPF-subject, which can shrink the AW ceiling headroom left for your bonus if your base salary previously sat below the old S$7,400 cap but above the new S$8,000 one is irrelevant, only your actual OW subject to CPF matters.
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.
Is this the last planned increase, or will rates keep rising after 2026?
The OW ceiling increase completed its final phased step on 1 January 2026, so no further OW ceiling rise is currently scheduled. The senior-worker contribution rate increases are also the final phase of the Budget 2022 plan for the 55-65 age bands specifically, though the CPF Board has separately announced further contribution rate changes taking effect from 1 January 2027 for other aspects of the scheme, so employers and employees should keep checking cpf.gov.sg for the latest year's table.
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