KEY HIGHLIGHTS
- CPF updates kicking in from 2026 will boost long-term retirement savings.
- Salary ceiling rises to $8,000, plus new MediSave matching for seniors.
- Expect slightly lower take-home pay but stronger retirement and healthcare support.
When CPF rules shift, everyone starts asking the same thing — “So how much will this change my pay?”
Whether you’re a fresh grad in Bishan or an uncle in Jurong nearing retirement, these updates matter because they affect both your take-home pay and your future payouts.
The Government has confirmed a series of CPF adjustments taking effect in 2026, all aimed at helping Singaporeans build stronger retirement and healthcare savings. Let’s break it down in plain Kopitiam language.
Summary of Major CPF Changes (2026)
| CPF Area | What’s Changing in 2026 | Who It Affects |
|---|---|---|
| Monthly Salary Ceiling | Rising to $8,000 | Workers earning $7,400–$8,000 |
| CPF Rates for Senior Workers | +1.5% total increase | Ages 55–65 |
| MRSS Expansion | Includes all persons with disabilities | PWDs & families |
| Matched MediSave Scheme | Dollar-for-dollar matching up to $1,000/year | Ages 55–70 |
| FRS/ERS | FRS: $220,400, ERS: $440,800 | Anyone preparing for retirement |
CPF Monthly Salary Ceiling Rising to $8,000
From 1 January 2026, CPF contributions will apply to wages up to $8,000/month.
This is the final phase of the salary-ceiling rise that started back in Budget 2023.
If you earn between $7,400 and $8,000, your CPF contributions will increase.
Your take-home may dip a little, but your employer’s CPF share goes up too — so your overall package improves.
For a worker under 55, here’s a rough feel:
- Take-home pay: ~$6,400
- Total package with employer CPF: ~$9,360
No changes to:
- Annual CPF Salary Ceiling: $102,000
- Annual CPF Limit: $37,740
So monthly ceilings change, but the yearly caps stay put.
Higher CPF Contribution Rates for Senior Workers
Those aged 55 to 65 will see a bump in CPF rates.
It’s small, but it adds up over time — especially for those closing in on retirement.
New Rates From 2026
Ages 55–60
- Employer: 16%
- Employee: 18%
- Total: 34%
Ages 60–65
- Employer: 12.5%
- Employee: 12.5%
- Total: 25%
These extra amounts go straight into the Retirement Account (RA) or Ordinary Account (OA) if your RA already meets the Full Retirement Sum.
Employers will continue receiving the CPF Transition Offset (CTO) to help manage the cost increase.
MRSS Expanded to Support Persons With Disabilities
From 1 January 2026, the Matched Retirement Savings Scheme (MRSS) will include persons with disabilities of any age.
This means:
- PWDs under 55 get matching when topping up their Special Account (SA).
- Family members, employers, community groups — anyone can contribute.
More Singaporeans will now enjoy higher long-term CPF savings and more stable retirement payouts.
A New 5-Year Matched MediSave Scheme (MMSS)
This is one of the most meaningful changes for seniors facing rising healthcare costs across Singapore — from Changi to Woodlands.
Between 2026 and 2030, the Government will match:
$1 for every $1 you top up, capped at $1,000 per year.
Who qualifies?
You must:
- Be a Singapore Citizen aged 55–70
- Own one property with AV ≤ $21,000
- Have monthly income ≤ $4,000
- Have MediSave below half the Basic Healthcare Sum
No need to apply — CPF will auto-check and credit matching payouts the next year.
FRS Increasing to $220,400 in 2026
The Full Retirement Sum (FRS) continues to rise gradually to keep pace with living costs.
From 2026:
- FRS: $220,400
- BRS: $110,200
- ERS: $440,800
Only Singaporeans turning 55 in 2026 will use this new FRS figure.
ERS Will Also Rise to $440,800
The Enhanced Retirement Sum (ERS) increase applies to everyone, regardless of age.
This lets Singaporeans who want higher CPF LIFE payouts top up more — something many are already doing as people live longer and stay active longer.
Silver Housing Bonus (SHB) Gets a Boost
Seniors downsizing — whether from Ang Mo Kio or Marine Parade — will get better support.
From 1 December 2025:
- Top up up to $60,000 of housing refunds into RA → eligible for SHB
- Moving to a 2-room or smaller flat → extra $10,000 (total $40,000)
- Downsizing from private homes with AV $21,000–$31,000 → up to $20,000
This gives seniors more flexibility when freeing up cash for retirement.
More Updates to MediSave and MediShield Life (2026)
Healthcare is one of the biggest concerns for families in Singapore, especially aunties and uncles juggling chronic conditions.
Higher Withdrawal Limits
- Flexi-MediSave: Up from $300 → $400
- MediSave scans: Up from $300 → $600
Dental Coverage Expansion (mid-2026)
Flexi-MediSave will cover selected treatments such as:
- Permanent crowns
- Root canals
Available at CHAS clinics and public institutions.
Coverage for Fertility Preservation (from June 2026)
MediSave and MediShield Life will cover:
- Embryo freezing
- Egg freezing
- Ovarian tissue freezing
This helps patients undergoing medical treatments that risk permanent infertility.
Article Source: Janya Collective
FAQs
1. Will my take-home pay drop in 2026?
If you earn above $7,400, yes — slightly. But your CPF and employer contributions rise.
2. Does the CPF annual limit change?
No, it remains $37,740.
3. How do I know if I qualify for the Matched MediSave Scheme?
CPF checks automatically and informs eligible seniors each January.
4. Can family members top up my MRSS or MediSave?
Yes. Anyone can make eligible top-ups.
5. Why is the FRS increasing?
To keep retirement payouts aligned with inflation and longer life expectancy.
