Singapore CPF Contributions Updated for 2025: Singapore’s Central Provident Fund (CPF) continues to evolve to better support citizens’ retirement, housing, and healthcare needs. In 2025, important changes to CPF contribution rates, salary ceilings, and retirement savings policies came into effect—bringing opportunities, adjustments, and a few questions for both employers and employees. If you’re wondering how these changes will impact your take-home pay, your long-term savings, or your retirement strategy—this guide breaks it down in simple, practical terms.
Singapore CPF Contributions Updated for 2025
The CPF updates for 2025 are more than just technical changes—they represent a stronger commitment to retirement adequacy, inclusivity, and financial security for Singaporeans across all ages. Whether you’re a young professional or a senior worker, these changes provide more ways to grow your savings, plan for your future, and build a stable retirement.
| Update | Details |
|---|---|
| Monthly CPF Salary Ceiling | Increased from $6,800 to $7,400 on Jan 1, 2025. Will rise to $8,000 by Jan 1, 2026. CPF.gov.sg |
| Annual CPF Salary Ceiling | Remains at $102,000. |
| Senior Worker CPF Contribution Rates | Raised by 1.5 percentage points for workers aged above 55 to 65. |
| Closure of Special Account (SA) | From Jan 2025, SA for members aged 55+ will be closed. Savings will move to Retirement or Ordinary Account. |
| Enhanced Retirement Sum (ERS) | Raised to $426,000 in 2025. |
| Matched Retirement Savings Scheme (MRSS) | Expanding in 2026 to include Singaporeans with disabilities of all ages. |
Understanding the CPF System
The CPF is a mandatory savings plan for Singaporeans and Permanent Residents. Contributions are made by both employer and employee. Funds are distributed across these accounts:
- Ordinary Account (OA): For housing, education, insurance.
- Special Account (SA): For retirement investments (only before age 55).
- MediSave Account (MA): For healthcare expenses.
- Retirement Account (RA): Created at age 55 for lifelong monthly payouts.
What’s New in Singapore CPF Contributions Updated for 2025?
1. CPF Monthly Salary Ceiling Increased
The CPF monthly salary ceiling has risen from $6,800 to $7,400 as of January 1, 2025, with a final increase to $8,000 coming in 2026. This means that a greater portion of your monthly salary is now subject to CPF contributions.
This helps higher-income earners save more for retirement—but it also means slightly lower take-home pay for those earning above the previous ceiling.
Example:
If you earn $8,000/month:
- In 2024: CPF calculated only on $6,800.
- In 2025: CPF calculated on $7,400.
- By 2026: CPF will be calculated up to $8,000.
This means:
- Higher CPF savings for the future
- Lower immediate take-home pay
2. Changes to Senior Worker Contribution Rates
Starting January 2025, the CPF contribution rates for workers aged above 55 to 65 increased by 1.5 percentage points to boost retirement adequacy.
| Age Group | Employer (%) | Employee (%) | Total (%) |
|---|---|---|---|
| Up to 55 | 17 | 20 | 37 |
| 55–60 | 15.5 | 17 | 32.5 |
| 60–65 | 12 | 11.5 | 23.5 |
| 65–70 | 9 | 7.5 | 16.5 |
| 70+ | 7.5 | 5 | 12.5 |
This helps older workers grow their CPF savings even as they continue working later in life.
3. Special Account (SA) Closure for Members Aged 55+
From January 2025, CPF will close the Special Account (SA) for members aged 55 and above. SA funds will be transferred:
- First to the Retirement Account (RA), up to the Full Retirement Sum (FRS).
- Any remaining amount will go to the Ordinary Account (OA).
Why this matters:
- Simplifies CPF management.
- Maximizes CPF LIFE monthly payouts from the RA.
4. Enhanced Retirement Sum (ERS) Increased
To encourage more retirement savings, the Enhanced Retirement Sum (ERS) was raised to $426,000 in 2025. Members turning 55 can top up their RA to this amount for higher CPF LIFE monthly payouts.
5. Expansion of Matched Retirement Savings Scheme (MRSS)
Currently supporting Singaporeans aged 55–70 with lower retirement savings, the MRSS will expand in 2026 to include Singaporeans with disabilities of all ages.
- CPF matches cash top-ups to RA dollar-for-dollar, up to $600/year (soon to be $2,000 for eligible groups).
- Encourages family members to help boost savings for loved ones.
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FAQs About Singapore CPF Contributions Updated for 2025
Q1: How does the CPF salary ceiling affect my take-home pay?
If your monthly salary is above the CPF ceiling, more of it will now be subject to CPF deductions. This means slightly lower take-home pay—but it increases your retirement savings.
Q2: Will the annual salary ceiling change in 2025?
No. The annual salary ceiling remains at $102,000.
Q3: What happens to my SA after 55?
Your SA will be closed. Funds go to your RA (up to the Full Retirement Sum), and any extra will go to your OA.
Q4: Can I still top up my RA after 55?
Yes. You can top up your RA up to the new Enhanced Retirement Sum (ERS) of $426,000 in 2025.
Q5: Who is eligible for MRSS matching?
Currently, Singaporeans aged 55–70 with low CPF balances. From 2026, the scheme expands to include Singaporeans with disabilities of all ages.
Practical Tips for Employees & Employers
- Employees: Budget for slightly lower take-home pay if you’re earning above $6,800/month. View this as long-term retirement investment.
- Employers: Adjust payroll systems and update HR policies to reflect new contribution rates and ceilings.
- Families: Consider voluntary top-ups to elderly parents’ CPF accounts—especially now with higher ERS and MRSS matching.
