KEY HIGHLIGHTS
- CPF rules are changing in 2026, affecting salaries, retirement, and healthcare savings.
- Higher CPF limits, bigger MediSave matching, and improved senior support are coming.
- Most Singaporeans will contribute more — but also retire with stronger payouts.
CPF changes always sound technical, but this round hits close to home. Whether you’re a fresh grad just starting work or already counting down to retirement, the 2026 CPF updates will affect how much you take home, how much goes into savings, and how comfortable your later years could be.
The Government’s goal is straightforward: help Singaporeans cope with rising living and healthcare costs while strengthening long-term retirement adequacy. Honestly speaking, some changes pinch a bit now — but most are meant to pay off later.
Here’s what’s changing, broken down clearly without the policy jargon.
| CPF Area | What’s Changing in 2026 | Who It Affects |
|---|---|---|
| Monthly Salary Ceiling | Increased to S$8,000 | Employees earning S$7,400–S$8,000 |
| CPF Rates (Senior Workers) | Up to +1.5% total increase | Ages 55–65 |
| MRSS Expansion | Covers persons with disabilities of any age | PWDs & caregivers |
| Matched MediSave Scheme | S$1-for-S$1, up to S$1,000/year | Ages 55–70 |
| Retirement Sums | FRS S$220,400, ERS S$440,800 | Those planning retirement |
Monthly CPF Salary Ceiling Goes Up to S$8,000
From 1 January 2026, CPF contributions will apply to monthly wages up to S$8,000. This is the final step of a phased increase that started in Budget 2023.
If your salary sits between S$7,400 and S$8,000, your CPF contribution will rise slightly. That means your take-home pay may dip a bit, but your employer’s CPF contribution also increases — so your overall compensation actually improves.
For a worker below 55, the rough picture looks like this:
- Take-home pay: around S$6,400
- Total package (including employer CPF): about S$9,360
Important to note:
- Annual CPF Salary Ceiling stays at S$102,000
- Annual CPF Contribution Limit remains S$37,740
So yes, the monthly cap changes — but yearly limits stay the same.
Higher CPF Contribution Rates for Senior Workers
Singaporeans aged 55 to 65 will see higher CPF contribution rates from 2026. It may not feel huge month-to-month, but over a few years, the difference can be meaningful.
New CPF Rates from 2026
Ages 55–60
- Employer: 16%
- Employee: 18%
- Total: 34%
Ages 60–65
- Employer: 12.5%
- Employee: 12.5%
- Total: 25%
These additional contributions flow mainly into the Retirement Account (RA), or the Ordinary Account (OA) if the RA already meets the Full Retirement Sum. Employers will still receive the CPF Transition Offset to cushion higher costs, so no need to worry about job impact.
MRSS Expanded for Persons With Disabilities
From 1 January 2026, the Matched Retirement Savings Scheme (MRSS) will include persons with disabilities of any age.
This means:
- Persons with disabilities below 55 can receive matching grants when topping up their Special Account (SA).
- Family members, employers, and even community groups can contribute.
- Long-term retirement savings become more secure for a group that often faces employment challenges.
For many families, this is a quiet but very meaningful change.
New 5-Year Matched MediSave Scheme for Seniors
Healthcare costs worry many Singaporeans, especially after 55. To help, a new Matched MediSave Scheme (MMSS) will run from 2026 to 2030.
The Government will match:
- S$1 for every S$1 topped up
- Capped at S$1,000 per year
Who qualifies?
You must:
- Be a Singapore Citizen aged 55–70
- Own only one property with AV ≤ S$21,000
- Earn ≤ S$4,000/month
- Have MediSave below half the Basic Healthcare Sum
No application needed. Eligibility is auto-checked, and matching funds are credited the following year.
Retirement Sums Rising in 2026
For those turning 55 in 2026, the Full Retirement Sum (FRS) will increase to S$220,400. The Basic Retirement Sum (BRS) becomes S$110,200.
The Enhanced Retirement Sum (ERS) will rise to S$440,800 for everyone, regardless of age. This gives Singaporeans who want higher CPF LIFE payouts more room to top up — something many are already doing as life expectancy increases.
Silver Housing Bonus Gets More Generous
Seniors who downsize their homes will receive stronger support from 1 December 2025.
Key updates:
- Top up to S$60,000 of housing proceeds into RA to qualify
- Move to a 2-room or smaller flat and get an extra S$10,000
- Seniors downsizing from private homes (AV S$21,000–S$31,000) can receive up to S$20,000
For retirees sitting on high-value homes but low cash flow, this gives much-needed flexibility.
MediSave and MediShield Life Improvements
Healthcare support continues to expand in 2026, especially for seniors and families.
Higher Withdrawal Limits
- Flexi-MediSave: S$300 → S$400
- MediSave for scans: S$300 → S$600
Dental Coverage (Mid-2026)
Selected treatments like permanent crowns and root canals will be covered at CHAS clinics and public healthcare institutions.
Fertility Preservation Coverage (From June 2026)
MediSave and MediShield Life will cover procedures such as embryo, egg, and ovarian tissue freezing for patients undergoing treatments that may affect fertility.
Frequently Asked Questions
Will my take-home pay drop in 2026?
If you earn above S$7,400, yes — slightly. But your CPF savings and employer contributions increase too.
Does the CPF annual contribution limit change?
No. It stays at S$37,740.
How will I know if I qualify for the Matched MediSave Scheme?
Eligibility checks are automatic. CPF will notify eligible seniors each year.
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