KEY HIGHLIGHTS
- CPF changes kick in from 2026, affecting salary ceilings, contributions, and retirement schemes.
- Senior workers will see slightly lower take-home pay but higher CPF savings.
- Big boosts coming for MediSave, MRSS, ERS, and seniors planning to right-size their homes.
So when CPF rules change, everyone — from the younger workers to our uncles and aunties nearing retirement — wants to know how their wallets will be affected.
The Government has confirmed several CPF updates taking effect in 2026, aimed at improving long-term retirement savings while keeping support schemes relevant to today’s salaries.
Here’s a clear breakdown, so you don’t have to dig through policy papers during your Kopi O break.
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Summary of Major CPF Changes (2026)
| Area Updated | What’s Changing in 2026 | Who It Affects |
|---|---|---|
| Monthly CPF Salary Ceiling | Rising to $8,000 | Workers earning $7,400–$8,000 |
| Senior Worker CPF Rates | +1.5% total increase | Ages 55–65 |
| MRSS Expansion | Now includes persons with disabilities of all ages | PWDs & families |
| New Matched MediSave | Dollar-for-dollar matching up to $1,000/year | Ages 55–70 |
| FRS & ERS Increase | FRS: $220,400, ERS: $440,800 | Anyone preparing for retirement |
CPF Monthly Salary Ceiling Will Rise to $8,000
From 1 January 2026, CPF contributions will apply to monthly wages up to $8,000. This is the last phase of increases announced in Budget 2023.
If you earn between $7,400 and $8,000, you’ll now contribute more to CPF — and yes, that means your take-home pay dips slightly. But your employer will also contribute more, so your overall package goes up.
A quick look at how this impacts a worker under 55:
- Take-home pay (2026): $6,400
- Overall pay including employer CPF: $9,360
Nothing changes for CPF’s annual salary ceiling ($102,000) or the annual limit ($37,740).
Higher CPF Contribution Rates for Senior Workers
Workers aged 55–65 will get a small boost in CPF contributions from employers and themselves.
From 2026, total CPF rates rise by 1.5%:
For Ages 55–60
- Employer: 16%
- Employee: 18%
- Total: 34%
For Ages 60–65
- Employer: 12.5%
- Employee: 12.5%
- Total: 25%
These extra contributions will go straight into the Retirement Account (RA) — or the Ordinary Account (OA) if the RA already has the Full Retirement Sum.
A note for employers
CPF Transition Offset (CTO) will continue, helping them cover the increased employer CPF costs.
MRSS Will Be Expanded for Persons With Disabilities
From 1 January 2026, the Matched Retirement Savings Scheme (MRSS) will also support persons with disabilities of any age.
- PWDs under 55 will get matching when topping up their Special Account (SA).
- Anyone — family, employers, even community groups — can contribute.
More Singaporeans will now enjoy higher long-term CPF savings and future payouts.
A New Five-Year Matched MediSave Scheme (MMSS)
One of the biggest upgrades for 2026–2030 is the Matched MediSave Scheme.
What it does
The Government will match $1 for every $1 you top up to MediSave, 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 a monthly income ≤ $4,000
- Have MediSave balance below half the Basic Healthcare Sum
Eligibility is automatically checked each year, and matching payouts come the following year.
This will be especially helpful for seniors facing rising healthcare needs.
FRS Will Rise to $220,400 in 2026
The Full Retirement Sum (FRS) is going up again, about 3.5%, to $220,400.
That means:
- BRS: $110,200
- ERS: $440,800
Your FRS is locked based on the year you turn 55, so only those hitting 55 in 2026 will use this number.
ERS Will Increase to $440,800
Unlike the FRS, the Enhanced Retirement Sum (ERS) is not age-dependent.
This means anyone can top up more into their Retirement Account, regardless of age. The increased ERS means higher potential CPF LIFE payouts later on — something many Singaporeans appreciate as life expectancy rises.
Silver Housing Bonus (SHB) Gets a Boost
Seniors downsizing to unlock cash while strengthening their retirement savings will get more support.
From 1 Dec 2025:
- Seniors who put up to $60,000 of CPF housing refunds into their RA will qualify for SHB.
- Those moving to 2-room or smaller flats get an extra $10,000, raising the bonus to $40,000.
- Seniors right-sizing from a private property with AV between $21,000 and $31,000 can also get up to $20,000.
This gives seniors more flexibility while keeping retirement planning strong.
More Enhancements to MediSave & MediShield Life
Healthcare costs are a big concern, especially for older Singaporeans. Several changes will roll out across 2026:
Higher outpatient withdrawal limits
- Flexi-MediSave: Up from $300 to $400
- MediSave scans: Up from $300 to $600 (from 1 Jan 2026)
Dental coverage extended
Flexi-MediSave will now cover selected dental treatments like:
- Permanent crowns
- Root canal treatments
Available at CHAS clinics and public institutions from mid-2026.
Support for fertility preservation during medical treatment
From June 2026, MediSave and MediShield Life will cover:
- Embryo freezing
- Egg freezing
- Ovarian tissue freezing
This applies to patients whose medical treatments risk causing permanent infertility.
FAQs
1. Will my take-home pay drop in 2026?
If you earn above $7,400, yes — slightly. But your CPF savings and employer contributions increase.
2. Does the CPF annual limit change?
No. It stays at $37,740.
3. How do I know if I qualify for MMSS?
CPF will check automatically and inform you each January from 2026.
4. Can family members top up my MRSS or MMSS?
Yes. Anyone can make eligible top-ups.
5. Why is the FRS increasing again?
To keep pace with inflation and longer life expectancy in Singapore.
This article source is dollarsandsense.sg
