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Singapore CPF Contribution Ceiling to Increase Gradually, Reaching SGD 8,000 in 2026

Singapore CPF Contribution Ceiling to Increase Gradually, Reaching SGD 8,000 in 2026
Singapore CPF Contribution Ceiling to Increase Gradually, Reaching SGD 8,000 in 2026

To keep up with wage increases and help employees accumulate more retirement savings, in February 2023, Singapore's Deputy Prime Minister and Minister of Finance, Lawrence Wong announced that the Singaporean government would gradually increase the monthly salary ceiling in four stages, until it reaches S$8,000 in 2026. 。 The CPF salary ceiling is the maximum amount of income subject to CPF contributions.

 

 

From September 1, 2023, it will be increased to S$6,300 ; from January 1, 2024, it will be increased to S$6,800 ; from January 1, 2025, it will be increased to S$7,400 ; and from January 1, 2026, it will be increased to S$8,000 in 2026. S$8000. The annual CPF salary ceiling is S$102,000 and remains unchanged. This ceiling includes all the employee's income for the year (such as monthly salary, bonuses, etc.). For example, with the current employee CPF contribution rate of 20% and a monthly salary ceiling of S$6,300, an employee earning S$8,000 per month will see their net salary slightly decrease from S$6,800 to S$6,740 in September. In January 2026, an employee earning S$8,000 per month will see their net salary further decrease to S$6,400.

Due to the gradual increase in the monthly salary ceiling, and the unchanged 17% contribution rate borne by Singaporean employers, employers' labor costs will increase year by year. As mentioned above, employees' CPF savings will increase by an additional S$111 to S$740 per month.

The Singapore CPF covers four main areas, namely retirement, housing, investment, and healthcare . Currently, for Singaporean employees aged 55 and below, the employee and employer CPF contribution rates are 20% and 17% 。

 


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