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CPF updates from 1 Jan 2026: higher ordinary wage ceiling, contribution hikes for 55–65, FRS rise and matched schemes

ByBrian

Heads up — your CPF is about to change in a few ways from 1 January 2026, and most of those changes are meant to help you build a sturdier retirement nest egg. If you’re an employer, an employee, or someone planning retirement, this is the kind of update you want to read through and bookmark.

What’s changing (the short version)

  • Ordinary wage ceiling goes up from $7,400 to $8,000 per month.
  • No change to the annual CPF salary ceiling of $102,000 or the contribution cap of $37,740.
  • CPF contribution rates increase for staff aged 55–60 and 60–65.
  • Full Retirement Sum (FRS) rises for those turning 55 in 2026: from $213,000 to $220,400.
  • Matched Retirement Savings Scheme expands to include younger Singaporeans with disabilities.
  • New Matched MediSave Scheme runs for five years to boost MediSave balances for eligible seniors.

Deeper dive: wage ceilings and why the change matters

From 1 Jan 2026, the CPF ordinary wage ceiling — basically the monthly cap on wages that get CPF contributions — will be bumped up by $600 to $8,000. That’s the last increase in a multi-step plan that began in Sept 2023, so think of this as the final piece settling into place.

Why does this matter? Because any salary above the ordinary wage ceiling won’t attract CPF contributions in that month. Raising the ceiling makes sure CPF contributions keep pace with rising wages so more of your salary gets channelled into your CPF accounts for retirement, healthcare and housing needs.

Important: the annual salary ceiling stays at $102,000, and the maximum total contributions limit remains $37,740. So if you’re paid extra in bonuses or additional wages, those still fall under the same yearly cap.

Contribution rate hikes: who’s affected

The government is nudging contributions up for older workers — a move aimed at shoring up retirement adequacy as people work longer and live longer.

  • For employees aged over 55 to 60: total CPF contribution rate rises from 32.5% to 34% of total wages. The employee portion goes up from 17% to 18% in 2026.
  • For employees aged over 60 to 65: total CPF contribution rate rises from 23.5% to 25% of total wages. The employee portion increases from 11.5% to 12.5% in 2026.

So for workers approaching retirement but still in the workforce, more will be channelled into CPF automatically. Employers will also see a higher contribution burden for these age groups, so payroll planning needs an update.

FRS, BRS and ERS: the numbers for 2026

If you turn 55 in 2026, your Full Retirement Sum (FRS) — the benchmark for how much you should ideally have in your retirement accounts — will be about 3.5% higher. It rises to $220,400 (from $213,000).

  • Basic Retirement Sum (BRS) for 2026: $110,200 (half the FRS).
  • Enhanced Retirement Sum (ERS) for 2026: $440,800 (double the FRS).

These figures guide monthly payouts in retirement and the maximum top-ups you can make. They’re fixed based on the year you turn 55, so they’re a handy target to plan against.

Good news for persons with disabilities — and a new MediSave boost

The Matched Retirement Savings Scheme, which gives dollar-for-dollar matching for cash top-ups into the CPF Special Account, will be extended to younger Singaporeans with disabilities. Eligible persons with disabilities can get a 1:1 match of up to $2,000 a year, with a lifetime cap of $20,000. If you’re under 55, make sure your status is verified with the Ministry of Social and Family Development by 1 Nov of the current year to be eligible the next year.

Also launching in 2026 is the Matched MediSave Scheme, running for five years. It aims to boost MediSave balances for citizens aged 55 to 70 who have lower MediSave savings. The Government will match voluntary cash top-ups to MediSave dollar-for-dollar, up to $1,000 a year, with matched grants disbursed the following year. The idea is to help people cover insurance premiums and medical treatments more comfortably.

Practical tips: what you should do now

  • If you handle payroll: update payroll systems to reflect the new ordinary wage ceiling and changed rates for the affected age groups. Communicate changes to staff so no one is surprised.
  • If you’re an employee: check your payslip from Jan 2026 onwards. Note the new employee contribution percentages if you’re in the 55–65 age bands.
  • Consider voluntary top-ups: topping up to your Special Account (SA) or MediSave can still be a powerful way to boost retirement and healthcare cushions — especially with matching schemes around.
  • If you or a loved one is a person with disabilities: check the eligibility criteria and make sure status verification with MSF is done by 1 Nov to qualify for the matched retirement scheme next year.
  • Speak to a financial planner if you’re unsure how these numbers affect your retirement timeline. A few tweaks now could make payouts smoother later.

Final thoughts

These CPF tweaks aren’t dramatic, but they’re meaningful — especially if you’re nearing retirement or managing payroll. Higher wage ceilings mean more of higher wages go into CPF; increased contribution rates for older workers aim to shore up retirement adequacy; and the expanded matched schemes give targeted support for people who need it most.

Take a bit of time before Jan 1, 2026 to review your CPF strategy, update payroll settings if you’re an employer, and check if you or family members qualify for the matching schemes. Small proactive steps now will pay off later.

Got questions or want a walkthrough of how this affects your payslip? Drop a comment below or share this post with someone who should know.

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