CPF Contribution Updates 2026

There are some upcoming changes to the Central Provident Fund (CPF) rules that employers and employees should be aware of. These adjustments affect contribution rates and wage ceilings, with the aim of helping workers, particularly older ones, save more for retirement.

Here’s a quick breakdown of what’s changing.

Wage Ceilings

On 1 January 2026:

• The Ordinary Wage (OW) ceiling will increase from $7,400 to $8,000 per month. This means CPF contributions will apply to a slightly larger portion of monthly wages.
• The Annual Salary ceiling will remain at $102,000. This cap applies to the total of Ordinary Wages and Additional Wages (such as bonuses).
• The Additional Wage ceiling will also stay the same, calculated as $102,000 − total OW subject to CPF for the year.
• The CPF Annual Limit will remain unchanged at $37,740.

Contribution Rates for Senior Workers

On 1 January 2026, CPF contribution rates for employees aged 55 to 65 will increase as follows:

• Above 55 to 60: +1.5% (1% from employer, 0.5% from employee)
• Above 60 to 65: +1.5% (1% from employer, 0.5% from employee)

There will be no change for the Above 65 to 70 and Above 70 groups.

The extra contributions for those aged 55 to 65 will go into the Retirement Account, up to the Full Retirement Sum. If that’s already in place, contributions will flow into the Ordinary Account.

Other Points to Note

• To ease the impact of the increases, employees earning between $500 and $750 will continue to have their employee contributions phased in.
• The current graduated rates remain unchanged for Singapore Permanent Residents in their first or second year.

Rest assured that we’ve taken care of the necessary updates on SimplePay, so you don’t need to do anything on your side.

Should you have any questions, please contact our friendly Support team at support@simplepay.cloud. You can also read more about CPF on our help page.

In addition, queries can be directed to the CPF Board directly via the channels listed on their website.

If you aren’t a SimplePay member yet, why not take advantage of our free 30-day trial account? Signing up is a breeze, and you get to experience the benefits of payroll made simple firsthand.

Take care,

Team SimplePay