Singapore will introduce wide-ranging CPF changes in 2025–2026, including higher salary ceilings, increased contribution rates for senior workers, and the closure of Special Accounts for members aged 55 and above. Officials say the measures aim to boost retirement adequacy as the population ages.
CPF Changes in 2025–2026
| Key Fact | Detail |
|---|---|
| Monthly CPF salary ceiling | Raised to S$7,400 in 2025 and S$8,000 in 2026 |
| Senior worker contributions | Rates rise by 1.5 pp in 2025 and another 1.5 pp in 2026 |
| Special Account closure | From Jan 2025, SA closed for members aged 55+; funds moved to RA/OA |
| Enhanced Retirement Sum | Raised from 3× to 4× Basic Retirement Sum in 2025 |
| Platform workers | CPF deductions from Jan 2025, mandatory for those born after 1 Jan 1995 |
| Official Website | CPF Board |
The CPF changes mark one of the most significant updates to Singapore’s retirement savings framework in recent years. Policymakers argue that the adjustments are necessary to keep pace with demographic trends and rising costs.
Further announcements are expected in 2026 as the government reviews the long-term sustainability of the system.
Higher Salary Ceilings for CPF Contributions
From 1 January 2025, the CPF monthly salary ceiling will increase to S$7,400, up from S$6,800 today. In 2026, it will rise further to S$8,000, according to the Central Provident Fund Board (CPF Board).
The annual salary ceiling of S$102,000 remains unchanged, ensuring the CPF system captures a larger share of wages for higher-income employees while maintaining a limit on total annual contributions.
Contribution Increases for Senior Workers
Contribution rates for employees aged 55 to 65 will increase by 1.5 percentage points from January 2025, with an additional 1.5 points in 2026. These changes will be split between employer and employee contributions.
Deputy Prime Minister Lawrence Wong said in his 2024 Budget speech that the adjustments were designed to “enhance retirement savings without overly burdening employers.”
By 2026, employees aged 55 to 60 will contribute 18% of wages, while employers add 16%. Workers aged 60 to 65 will contribute 12.5%, matched by employers.
Special Account Closure for Members Over 55
The CPF Special Account (SA) will be closed for members aged 55 and above from January 2025. Funds will be transferred into the Retirement Account (RA) up to the Full Retirement Sum, with any remaining amounts moved to the Ordinary Account (OA).
CPF Board said in a statement that the change will “simplify account structures and better channel funds toward retirement needs.”
Members may keep existing SA-linked investments under the CPF Investment Scheme, though proceeds from such investments will flow into the RA.
Enhanced Retirement Sum Raised
The Enhanced Retirement Sum (ERS) will rise from three times to four times the Basic Retirement Sum (BRS) starting in 2025.
According to the Ministry of Manpower (MOM), this will allow members who can afford larger top-ups to secure higher monthly payouts in retirement. Analysts say the measure reflects Singapore’s rising cost of living and longer life expectancy.
CPF Contributions for Platform Workers
From 1 January 2025, platform operators such as ride-hailing and delivery companies must deduct CPF contributions from worker earnings and submit them monthly.
Workers born on or after 1 January 1995 will face mandatory contributions to the Ordinary, Special, and MediSave Accounts. Older workers may opt in voluntarily.
MOM explained that the reform seeks to “provide platform workers with the same basic protections as employees,” while acknowledging the sector’s role in Singapore’s economy.
Other Key Changes
- MediSave withdrawals: From October 2025, annual Flexi-MediSave withdrawals rise from S$300 to S$400. From 2026, outpatient scan withdrawal limits will double from S$300 to S$600.
- Tax relief: From Year of Assessment 2025, the dependant income threshold for CPF cash top-up relief will increase from S$4,000 to S$8,000. However, from 2026, top-ups that qualify for government matching under the Matched Retirement Savings Scheme will not also be eligible for relief.
- Employer support: To cushion businesses, the government will continue providing a CPF Transition Offset, covering half of the increase in employer contributions until 2026.
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FAQs About CPF Changes in 2025-2026
How will the CPF changes affect my salary?
If you are aged 55 or younger, the main change is the higher salary ceiling. From 2025, contributions will apply on wages up to S$7,400 a month, rising to S$8,000 in 2026. This means more of your income will go into CPF, but your take-home pay will reduce slightly. For workers above 55, higher contribution rates will also increase CPF deductions.
What happens to my Special Account (SA) after January 2025?
From the second half of January 2025, the SA will be closed for all members aged 55 and above. Balances will be transferred first to the Retirement Account (RA) up to the Full Retirement Sum. Any remaining funds will go into the Ordinary Account (OA). You may still keep existing SA-linked investments, but all future proceeds will flow into the RA.
Will my employer’s costs increase?
Yes. Employers will need to contribute more for workers aged 55 to 65 in 2025 and 2026. However, the government is offering a CPF Transition Offset, covering half of the increase in employer CPF contributions through 2026. This is meant to ease the adjustment for businesses.
What does the higher Enhanced Retirement Sum (ERS) mean?
The ERS, which determines how much members can set aside for higher monthly payouts, will rise from three times to four times the Basic Retirement Sum in 2025. This allows individuals with greater savings capacity to increase their retirement payouts under CPF LIFE.
Are platform workers covered by these new rules?
Yes. From January 2025, platform operators such as ride-hailing and delivery companies must deduct CPF contributions from worker earnings. For workers born on or after 1 January 1995, contributions are mandatory. Older platform workers may opt in voluntarily to receive both employee and employer CPF contributions.
How do the MediSave changes affect me?
From October 2025, the Flexi-MediSave annual withdrawal limit will increase from S$300 to S$400. From 2026, the withdrawal cap for outpatient scans will rise from S$300 to S$600. These measures provide greater flexibility to meet medical expenses.
Will CPF cash top-ups still give me tax relief?
Yes, but with changes. From Year of Assessment 2025, the income threshold for dependants under CPF Cash Top-Up Relief will increase to S$8,000. However, from 2026, top-ups that qualify for matching grants under the Matched Retirement Savings Scheme will not also be eligible for this tax relief.
Implications for Workers and Employers
For employees under 55, changes mainly affect those earning above today’s salary ceiling. For senior workers, higher contribution rates will increase retirement savings but slightly reduce take-home pay.
Employers face higher labour costs, though officials stress the government offsets are intended to ease the transition. Platform workers gain stronger retirement protection, but some industry players warn of increased compliance costs.
Dr Walter Theseira, an economist at the Singapore University of Social Sciences, noted that the reforms “strike a balance between retirement adequacy and maintaining competitiveness, but the real test will be how businesses and workers adapt.”
