To keep pace with rising salaries, while also strengthening our retirement adequacy. There will be several changes to the CPF scheme in 2026. Many of these changes have been introduced gradually over the past few years, so we should be familiar by now.
#1 CPF Monthly Salary Ceiling Will Rise From $7,400 to $8,000
From 1 January 2026, the monthly salary ceiling for CPF contributions will rise to $8,000. To keep pace with rising salaries, it was announced at the Singapore Budget 2023 that our monthly CPF salary ceiling would increase in phases to $8,000 in 2026. This will be the final increase based on the 2023 announcement.
| CPF Monthly Salary Ceiling | |
| Before 1 September 2023 | $6,000 |
| From 1 September 2023 | $6,300 |
| From 1 January 2024 | $6,800 |
| From 1 January 2025 | $7,400 |
| From 1 January 2026 | $8,000 |
This means that while those earning up to $8,000 will receive more CPF contributions from their employer, they will also experience a lower take-home pay. Here’s an example, using a worker aged 55 years old and below in 2026, who earns $8,000 a month:
| 2025 | 2026 | |
| Monthly Salary | $8,000 | $8,000 |
| CPF Contributions: Employer Employee | (Capped at $7,400) $1,258 $1,480 | (Capped at $8,000) $1,360 $1,600 |
| Take-Home Pay (i.e. Monthly Salary – Employee CPF Contributions) | $8,000 – $1,480 = $6,520 | $8,000 – $1,600 = $6,400 |
| Overall Remuneration (i.e. Monthly salary + Employer CPF Contributions) | $8,000 + $1,258 = $9,258 | $8,000 + $1,360 = $9,360 |
Note that this increase in CPF monthly salary ceiling does not impact the CPF annual salary ceiling of $102,000 and the CPF Annual Limit of $37,740. What this means is that the total amount of wages that attracts CPF contributions in a calendar year doesn’t change. Neither does the total amount of mandatory and voluntary contributions that can be made to an employee’s CPF account.
#2 CPF Contribution Rates For Senior Workers Will Increase
From 1 January 2026, the CPF contribution rates for employees aged above 55 to 65 years old will be increased. The changes apply to wages earned from 1 January 2026:
| Employee Age | CPF Contribution By Employer | CPF Contribution By Employee | Total CPF Contribution Rate |
| Above 55 to 60 years old | 16% (+0.5%) | 18% (+1%) | 34% (+1.5%) |
| Above 60 to 65 years old | 12.5 (+0.5%) | 12.5 (+1%) | 25% (+1.5%) |
This is only for employees earning monthly wages exceeding $750. Employer contributions will increase by 0.5% of wages, while employee contributions will increase by 1% of wages. This means that though your take-home salary will shrink slightly in 2026, your employer will be putting more into your CPF account each month.
The increase in CPF contributions will be fully allocated to your Retirement Account (RA), up to the Full Retirement Sum (FRS). If you already have set aside the FRS in your RA, the CPF contributions will be allocated to your Ordinary Account (OA).
CPF Contribution Rates for employees of other ages will remain the same as 2025.
| Employee Age | Total CPF Contribution Rate In 2025 | Total CPF Contribution Rate In 2026 |
| 55 years old and below | 37% | 37% |
| Above 55 to 60 years old | 32.5% | 34% (+1.5%) |
| Above 60 to 65 years old | 23.5% | 25% (+1.5%) |
| Above 65 to 70 years old | 16.5% | 16.5% |
| Above 70 years old | 12.5% | 12.5% |
As in previous years, since these annual increases began in 2022, eligible employers will receive a CPF Transition Offset (CTO) to help pay for the increased CPF contributions in 2026. Employers who employ Singapore Citizens and Permanent Residents aged above 55 to 65 years old will be notified by IRAS of how much they will receive. The payouts will come in September for wages paid from January to June, and in March the following year for wages paid from July to December.
#3 Matched Retirement Savings Scheme (MRSS) Will Be Enhanced For Persons With Disabilities
The Matched Retirement Savings Scheme helps senior Singapore Citizens to save more in their CPF accounts by matching the cash top-ups to their Retirement Accounts (RA).
From 1 January 2026, the Government will expand the MRSS to include eligible persons with disabilities of all ages. Eligible persons with disabilities below the age of 55 will receive the MRSS matching grant on cash top-ups to their CPF Special Account (SA), and benefit from higher CPF savings and monthly payouts in retirement. Anyone, including family members, employers, and the community, can top up the CPF accounts of those eligible.
#4 A New Five-Year Matched MediSave Scheme Starting In 2026
As announced in the 2025 Budget Speech, a five-year Matched MediSave Scheme (MMSS) will be introduced from 2026 to 2030.
Under the MMSS, the Government will match every dollar in voluntary cash top-ups to the MediSave Account (MA) of those aged 55 to 70, up to an annual cap of $1,000.
Similar to the Matched Retirement Savings Scheme (MRSS), anyone, including family members, employers, and the community, can top up the MediSave Account (MA) of those eligible.
To be eligible for the MMSS, the CPF member whose account is being topped up must:
- Be a Singapore Citizen aged 55 to 70;
- Own no more than one property and have a residential AV of $21,000 or below;
- Have a personal monthly income not exceeding $4,000; and
- Have MA balances of less than half the prevailing Basic Healthcare Sum.
MMSS eligibility will be automatically assessed every year, and the CPF Board will notify eligible members at the beginning of each year, starting from January 2026. Matching grants by the Government will be disbursed in the following year.
#5 FRS Will Rise To $220,400 From $213,000
The Full Retirement Sum (FRS) will increase about 3.5% to $220,400 in 2026, from $213,000 in 2025. Note that your FRS depends on the year you turn 55 and will remain the same for life. If you turn 55 after 2027, your FRS amount hasn’t been announced yet.
This increase in FRS means the Basic Retirement Sum (BRS) and Enhanced Retirement Sum (ERS) will also go up. In 2026, the BRS will be $110,200 (half of the FRS), while the ERS will be $440,800 (twice the FRS).
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
#6 ERS Will Rise To $440,800 In 2026, From $426,000 In 2025
Following 2025, when the ERS was increased to 2x the FRS, instead of 1.5x the FRS, the Enhanced Retirement Sum (ERS) will increase about 3.5% to $440,800 in 2026, from $426,000 in 2025.
Unlike the FRS, the Enhanced Retirement Sum (ERS) amount is not dependent on your age or the year you turn 55 years old. In other words, regardless of age, you can now top up more to your Retirement Account (RA) every year when the ERS increases. More funds in your RA means higher CPF LIFE monthly payouts.
#7 Silver Housing Bonus Scheme Has Been Enhanced
The Silver Housing Bonus (SHB) is given to seniors who right-size to a 3-room or smaller flat to supplement their retirement income. Seniors who own HDB flats or private residential properties of an Annual Value (AV) of $21,000 or less can receive a cash bonus of up to $30,000 when they use part of their cash proceeds from right-sizing to top up their CPF Retirement Account (RA).
From 1 December 2025, the SHB eligibility criteria has been adjusted so that seniors who commit up to $60,000 of their CPF housing refunds back into their RA now qualify for SHB. This means that more seniors can qualify for SHB will retaining more of their net sales proceeds in cash.
Seniors who right-size to 2-room or smaller flats (including Community Care Apartments) will receive an additional $10,000 cash bonus, bringing the maximum SHB to $40,000 (from $30,000).
The SHB will also be extended to seniors who right-size from a private residential property with AV between $21,000 and $31,000. These seniors will receive a SHB bonus of up to $20,000 if they right-size to a 3-room or smaller flat.
#8 More Enhancements to the MediSave and MediShield Life Schemes In 2026
Several enhancements to the MediSave and MediShield Life Schemes will be implemented throughout 2026.
The Flexi-MediSave annual withdrawal limit has been increased from $300 to $400 from 1 October 2025. This helps patients to pay for their outpatient bills. The MediSave outpatient scans annual withdrawal limit will also be doubled from $300 to $600 from 1 January 2026.
To ensure that dental care remains affordable, Flexi-MediSave will be extended to select restorative dental procedures, namely permanent crowns and root canal treatments at dental clinics under the Community Health Assist Scheme (CHAS) and public healthcare institutions. The Flexi-MediSave withdrawal limit has been revised to $400 annually.
The expansion of Flexi-MediSave will be implemented in mid-2026 and will benefit patients aged 60 and above.
To support patients undergoing medical treatments (such as chemotherapy and radiotherapy) which can cause irreversible infertility, MediSave and MediShield Life will be extended to the surgical costs of embryo freezing, egg freezing and ovarian tissue freezing. MediSave will also be extended to the pre- and post-procedure costs of embryo freezing and ovarian tissue freezing. The extension of MediSave and MediShield Life coverage to these procedures for this group of patients will be implemented in June 2026.
