As shared in the 2023 Budget, Singapore’s Central Provident Fund (CPF) is undergoing significant changes. Starting from September 1, 2023, CPF contribution rules are set to evolve which will affect one’s take-home pay and more. This article provides a comprehensive guide to the CPF contribution changes, their implications, and how you can navigate through them.

Understanding Changes in CPF Contribution

Currently, the CPF Ordinary Wage (OW) ceiling is capped at S$6,000/month. This amounts to roughly S$1,200 (20%) for the employee and S$1,020 (17%) for the employer, respectively. From 1st September 2023 onwards, the CPF OW ceiling is expected to increase to S$6,300. However, there will be no alterations to the CPF annual salary ceiling which remains at S$102,000. 

Key Changes in CPF Contribution from Sep 2023 to Jan 2026
Source: CPF Guide

By increasing the cap, this would mean high CPF contribution by both the employees and employers. As the CPF OW ceiling rises to S$8,000, the total monthly contribution will increase to $2,960. This is an increase of S$740 per month by 2026. 

Increase in CPF Contribution for Employees above 55

Along with adjusting the CPF OW ceiling, the government also modified CPF contributions for workers 55 and older through 70. In addition, the adjustments will be made to wages beginning on January 1, 2024. 

For workers aged between 55 to 65, they will see an increase in 1.5% in total contribution.  This is due to an increase of 1% for the employee and a 0.5% rise for the employer, respectively. As for workers aged 65 to 70, they will see an increase in 1.5% from 15.5% to 16.5%. 


This increase in CPF contribution may lead to some reduction in bring-home pay for those earning above the S$6K. However, it will eventually help to build up one’s retirement savings due to the higher monthly contributions. The increase in CPF savings can be used for the purchase of a new home or even to invest into different stocks or funds. 

Hence, it will be good for individuals who have yet to reach the CPF OW ceiling to achieve it by 2026. This is equivalent to getting a lesser employers’ contribution as compared to your colleagues who are earning above it. 

If you are keen to explore how to invest with your CPF money, click here to check out more.

In addition, do check out our other latest articles. If you are keen, check out our articles on other analysis: Trust Bank Referral and Top Travel Credit Card 2023: Hacks with Instarem Amaze.

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Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.


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