Singapore’s CPF contribution changes kicking in on 1 January 2026 are set to shake up payroll routines. The updates are designed to boost the retirement savings of Singaporeans and Permanent Residents, especially as incomes and life expectancy continue to rise. Here’s a clear and easy guide to help HR and finance teams understand what’s changing and what steps to take before the new rules roll in.
What’s Changing in CPF from 1 January 2026
Beginning 1 January 2026, Singapore will introduce significant updates to CPF rules that will affect both employees and employers.
- The monthly Ordinary Wage ceiling will increase from S$7,400 to S$8,000, meaning a larger portion of higher-income employees’ salaries will now attract CPF contributions.
- Contribution rates for employees aged above 55 up to 65 will rise for employees earning monthly wages >S$750.
Other CPF limits, including the annual salary ceiling of S$102,000 and the Additional Wage ceiling, will remain unchanged.
Try out CPF’s updated calculation tool here!
What This Means for Employers
These changes translate into higher CPF-related payroll costs, particularly if you employ older workers or staff whose monthly wages exceed the previous S$7,400 ceiling. Companies will need to ensure that their payroll systems are updated ahead of 2026 so that the new ceiling and contribution rates are correctly applied. Beyond system updates, businesses should assess the financial impact on their manpower budgets and forecast the increased CPF outlay for the year.
Clear communication with employees will also be important, as some may notice adjustments to their take-home pay once higher contributions take effect. Staying prepared will help you manage the transition smoothly and maintain compliance without disruption.
Need Help Navigating Changes?
CPF updates can be complex, especially for SMEs with lean HR and finance teams. From payroll adjustments to compliance checks and communication planning, the transition requires accuracy and careful execution. At Verti Human Capital, we help Singapore businesses stay compliant with evolving employment regulations.
If you need guidance or hands-on support, contact us at contactus@verti.sg or +65 6909 5691. We are ready to help you navigate the 2026 CPF changes confidently and keep your business running smoothly.
All information accurate as of 1 Dec 2025