Big changes are coming to CPF in 2025—and they go beyond routine updates.
From the closure of Special Accounts for over 1.4 million members to raise salary ceilings and expanded support for seniors, these shifts affect how your CPF grows, your take-home pay, and what you’ll eventually draw in retirement. Whether you’re still working or approaching 65, it’s worth taking a closer look.
Guide to CPF changes in 2025–2026
- CPF Salary Ceiling Changes: More Money In, More Retirement Out
- Senior Workers Get a Retirement Boost: CPF Rate Increases
- Government Support for Employers: Making Senior Hiring Work
- The Special Account Closure: 1.4 Million Members Affected
- Enhanced Retirement Sum: Now Even More Enhanced
- Platform Workers Enter CPF: A New Chapter for the Gig Economy
- Matched Retirement Savings Scheme: Bigger Matches, Bigger Peace of Mind
- Making CPF Work Even as the Rules Shift
1. CPF Salary Ceiling Changes: More Money In, More Retirement Out
From 2025, the CPF salary ceiling will increase in stages to reflect wage growth—meaning more of your income will go toward retirement during your peak earning years.
| Year | CPF Contrib. Ceiling | Total Monthly CPF* | Change in Take-Home Pay |
| 2024 | $6,800 | $2,516 | – |
| 2025 | $7,400 | $2,738 | − $120 |
| 2026 | $8,000 | $2,960 | − $240 |
*For employees under 55, based on standard rates.
If you’re earning $8,000 a month, by 2026 that’s $444 more going into your CPF every month. It may feel like a pay cut now, but this extra contribution earns guaranteed interest. Over time, it could make a real difference. If you’re 30 now, that higher contribution could grow into about $350,000 more in CPF savings by age 65, giving you a more substantial CPF LIFE payout later.
Still, it comes with a trade-off. You’ll have less cash in hand now, which can be tough if you’re juggling a mortgage, school fees, or rising everyday expenses.
So, what’s next?
- Near the new ceiling? Here’s the maths: if you earn $7,390 in 2025, you’ll hit just under the $7,400 CPF ceiling, so only $7,390 gets CPF deductions. If you earn $7,500, you still only get CPF deducted on $7,400—meaning that extra $110 in salary gets you just $110 more take-home. Sometimes a smaller raise keeps more money in your pocket.
- Already above $8,000? The annual salary cap still applies—CPF only deducts up to $102,000 of your annual income. Instead of hitting the cap mid-year and getting a sudden boost in take-home pay, CPF now spreads deductions evenly across all 12 months. This means your monthly paycheque stays consistent all year-round, so plan your budget accordingly.
2. Senior Workers Get a Retirement Boost: CPF Rate Increases
From 1 January 2026, workers aged 55 to 65 will see a bump in CPF contribution rates—1.5 percentage points in total. It’s the biggest boost in recent memory for senior workers, aimed squarely at helping them build up their retirement savings during their final working years.
Here’s how the increase breaks down:
| Component | Increase | Who Pays |
| Employer contribution | +0.5% | Your company |
| Employee contribution | +1.0% | You |
| Total boost | +1.5% | Split responsibility |
For instance, a 60-year-old earning $5,000 a month will see an extra $75 go into CPF—$25 from the employer and $50 from their own pocket.
Why this matters:
Senior workers have fewer years until retirement to grow their savings through compound interest, so higher contribution rates push every extra dollar straight into the Retirement Account (up to your FRS) and lift future CPF LIFE payouts.
The trade-offs
Your take-home pay dips. It’s no fun if you’re already financing ageing parents, kids’ home deposits, or tuition. It’s the classic sandwich-generation squeeze.
What should you do?
- Adjust your budget early to absorb the drop in take-home pay.
- Use CPF monthly payout calculators to estimate how the extra savings may affect your future payouts.
- Consider voluntary top-ups to boost your Retirement Account before the mandatory increases begin.
3. Government Support for Employers: Making Senior Hiring Work
CPF hikes raise employers’ costs of hiring, especially for older and more experienced staff – who tend to cost more. To help cushion the impact, the government is providing targeted support without adding admin headaches.
CPF Transition Offset: Easing the CPF hike
The CPF Transition Offset (CTO) gives employers automatic relief covering 50% of the increase in employer CPF contributions for Singaporean and PR workers aged 55 to 70.
Here’s what you need to know:
- No application needed—payouts are automatic
- Extended until 2026, as announced in Budget 2025
- Based on wages up to the CPF salary ceiling
- Applies across all sectors and salary levels
Example: If you employ a 55-year-old earning $4,000 a month, your additional CPF cost in 2026 is $20 per month. With the CTO offset, you pay only $10 more each month.
Payouts are made twice a year:
- September (for January–June wages)
- March (for July–December wages)
Senior Employment Credit: Extra help for older hires
The Senior Employment Credit (SEC) provides additional wage offsets for employers hiring Singaporeans aged 60 and above earning below $4,000 per month.
2025–2026 SEC rates:
| Age Group | ≤ $3,000/month | $3,000–$4,000/month |
| 60–64 | 2% of wage | $240 minus 6% of wage |
| 65–67 | 4% of wage | $480 minus 12% of wage |
| 68+ (69+ from 2026) | 7% of wage | $840 minus 21% of wage |
Example: Hire a 65-year-old earning $3,000, and you’ll receive $120 per month in SEC, plus $10 from CTO—bringing total support to $130 monthly.
4. The Special Account Closure: 1.4 Million Members Affected
The Special Accounts of approximately 1.4 million CPF members aged 55 and above were closed on 19 January 2025. This change ensures that only retirement-committed savings earn the higher long-term interest rate.
What happened to your money?
The transfer priority worked like this:
- Top-up RA first: SA funds first fill your Retirement Account (RA) up to the Full Retirement Sum (FRS).
- Leftovers go to OA: Any balance above the FRS then flows into the Ordinary Account (OA).
| Account | Interest Rate | Accessibility |
| Retirement Account | 4% guaranteed | Locked until retirement payouts |
| Ordinary Account | 2.5% guaranteed | Withdrawable anytime |
Who benefits most from the closure
Members with modest SA balances who hadn’t met their Full Retirement Sum benefit the most—their savings were moved to the Retirement Account, earning 4% interest instead of 2.5% in the OA.
Risk-averse members also gain. With funds consolidated into a single, higher-interest account, there’s less need to manage multiple components or shift funds around.
Who gets hit hardest
- “CPF-rich” members with SA balances of $300,000 to $400,000 lose flexibility. Many had planned to enjoy 4% interest while keeping funds accessible after setting aside their FRS.
- SA shielding practitioners are also impacted. Their go-to strategy to maximise high-interest savings is no longer available.
Now, what was this “Shielding” about?
SA Shielding allowed members to protect their SA balances at 4% interest while filling the RA with lower-interest OA funds at age 55.
The approach involved temporarily investing SA funds via CPFIS before age 55, so that OA funds would be used to form the RA. Afterward, members would liquidate investments and move funds back into SA.
This workaround is now closed. The government’s intent is clear: long-term savings should remain in long-term accounts, earning interest meant for retirement—not short-term flexibility.
Your post-closure options
If you have excess funds in your OA after the SA closure, you’re now looking at two main paths. Here’s how they compare at a glance:
| Option 1: Keep excess in OA | Option 2: Transfer excess to RA voluntarily |
| Earn 2.5% interest | Earn 4% interest (1.5% higher) |
| Maintain liquidity for emergencies | Lock in funds until retirement |
| Available for CPF Investment Scheme | Boost CPF LIFE payouts |
The choice is straightforward: keep your money in OA for flexibility and 2.5% interest, or transfer it to RA for 4% interest and higher CPF LIFE payouts. If you already have emergency savings outside CPF, an expert suggests going with the RA. That 1.5% difference may not sound like much, but over time, it can make a real impact on your retirement income.
Making the Smart Choice
Whether to keep your funds in OA or move them to RA depends on your financial goals and flexibility needs. Here’s how to decide:
Choose RA transfer if you:
- Have adequate emergency funds outside CPF
- Prioritise retirement security over liquidity
- Prefer guaranteed returns over market-linked investments
Keep funds in OA if you:
- Need access for big expenses or emergencies
- Are comfortable investing via CPFIS or other channels
- Value flexibility more than higher CPF interest
5. Enhanced Retirement Sum: Now Even More Enhanced
Yes, the Enhanced Retirement Sum (ERS) just levelled up—again. From 2025 onwards, the ERS has been raised to four times the Basic Retirement Sum (BRS), up from the previous 3x.
The new ERS levels
| Year | Enhanced Retirement Sum | Your Monthly Payout Estimate* |
| 2025 | $426,000 | ~$3,300 |
| 2026 | $440,800 | ~$3,400 |
| 2027 | $456,400 | ~$3,500 |
For male members under CPF LIFE Standard Plan starting payouts at 65
This new ceiling lets you lock in more retirement savings at CPF’s steady 4% rate, with inflation-adjusted payouts that last for life.
Who benefits most
This benefits two main groups:
- High-income earners with strong CPF balances who prefer predictable, inflation-protected income over managing a portfolio in retirement.
- Risk-averse individuals nearing 65 who’d rather not deal with market ups and downs.
How to maximise the ERS top-up strategy
You don’t need to top up all at once. As the ERS rises each year, you can gradually add more:
- 2025: Top up to $426,000
- 2026: Add another $14,800 (new limit: $440,800)
- 2027: Add another $15,600 (new limit: $456,400)
You can check your personal top-up room anytime on the CPF Retirement Dashboard, so you know exactly how much space is left.
Pro tip: Top up early in the year if you can—your money starts earning interest sooner, which means more compounding over time.
What to keep in mind
- Funds are locked—you can’t reverse the top-up
- Potential opportunity cost if your other investments do better
The bottom line is, If retirement certainty is your top priority and you have spare CPF funds, the new ERS gives you more room to grow your payouts—safely and steadily.
6. Platform Workers Enter CPF: A New Chapter for the Gig Economy
Starting this year, the gig economy’s wild west days are officially over. Platform workers across multiple sectors must now contribute to CPF:
- Ride-hailing: Grab, Gojek, TADA, Ryde, ComfortDelGro Zig
- Food delivery: GrabFood, Foodpanda, Deliveroo
- Logistics & parcels: Lalamove, Pickupp, uParcel, GoGoX
Who’s in, who’s not (yet)
- Mandatory contributors: All platform workers born on or after 1 January 1995 must contribute to CPF from 2025.
- Optional opt-ins: Workers born before 1995 can opt-in to join. Over 8,000 have already done so since the CPF opt-in opened in November 2024.
The CPF catch-up plan (2025–2029)
CPF contributions for platform workers and platform operators will rise gradually over five years to match employee-employer rates by 2029:
| Year | Platform Worker Rate | Platform Operator Rate | Goal |
| 2025 | Starting rates | Starting rates | Begin alignment |
| 2026–2028 | Gradual increases | Gradual increases | Progressive growth |
| 2029 | 20% | 17% | Full employee parity |
By 2029, platform workers will contribute 20%, and operators will match with 17%—just like full-time salaried employees.
Financial support to help you adjust
To soften the initial impact, the government is rolling out the Platform Workers CPF Transition Support (PCTS) scheme that offers monthly cash payouts.
Who qualifies:
- Workers born in/after 1995 (mandatory contributors)
- Workers born before 1995 who opt in
- Monthly income of $3,000 or less
How support works:
- 2025: Up to 100% offset of your CPF contribution increase
- 2026–2028: Support tapers down gradually
- How you get paid: Direct to your bank account every month
Example: If CPF deductions reduce your pay by $100/month in 2025, PCTS can fully offset that amount—so you build savings without feeling the pinch.
Better workfare, better support
From 2025, platform workers will also get upgraded Workfare Income Supplement (WIS) payouts:
- Now monthly (instead of yearly lump sums)—helps with regular cash flow
- From 2029:
- WIS matches employee levels
- 40% in cash, up from 10%
- 60% to CPF, building up retirement savings faster
How CPF will be calculated for you
- Your gross platform earnings are reported
- A fixed expense deduction is applied
- CPF contributions are calculated based on the adjusted amount
Don’t worry about the math—platform operators handle the deduction and submission for you.
Why this matters
- Buy a home: You can now use CPF Ordinary Account funds for HDB or private property, opening up options many gig workers didn’t have before.
- Build retirement savings: Contributions compound over time—no more relying solely on cash flow or personal discipline.
What to watch out for
- Lower take-home pay: With more going into CPF, you’ll need to manage tighter daily cash flow, especially if you rely on daily earnings.
- Platform costs may shift: Operators may tweak commission rates or pricing to absorb their share of CPF, which could affect your net earnings.
What You Should Do Now
- Check your status: Are you a mandatory contributor or eligible to opt in? You can find out on the CPF website.
- Track your CPF: Review your monthly statements to make sure your contributions are correct.
- Verify PCTS eligibility: If you qualify, make sure your bank details are up to date to receive the payouts without delay.
This marks a big shift for gig workers—less take-home pay now, but stronger financial security later. Whether you’re riding two wheels or four, it’s a move toward a more stable future.
7. Matched Retirement Savings Scheme: Bigger Matches, Bigger Peace of Mind
The Matched Retirement Savings Scheme (MRSS) has been turbo-charged for 2025, giving eligible seniors a much larger leg-up on their CPF balances.
| Feature | Before 2025 | Now (2025) |
| Annual dollar-for-dollar match | $600 | $2,000 |
| Lifetime cap | $6,000 | $20,000 |
| Age limit | Up to 70 | No age limit |
| Potential members | 395,000 | 740,000 + |
How the match works
Make a voluntary top-up to your Retirement Account and the government matches it dollar-for-dollar, up to $2,000 a year. In plain English: put in $1, you get $1 free—an instant 100% return that beats any “limited-time” offers.
Who qualifies?
You need to be a Singapore citizen who:
- Falls below the income and property-value thresholds, and
- Has less than the Basic Retirement Sum in your Retirement Account.
Unsure? The CPF website has a quick eligibility checker—takes less time than deciding between kopi-o or kopi-c.
Simple strategy to max the benefit
To get the full $2,000 government match each year, you’ll need to top up $2,000 into your CPF Retirement Account. You can do this in one of two simple ways:
- Monthly approach: Set up a monthly GIRO of about $170. It spreads your top-up across the year and gets you close to the $2,000 cap—no lump sum needed.
- Lump-sum approach: Make a $2,000 top-up at the start of the year. You’ll start earning CPF interest earlier, and the matching grant will be credited after processing.
You can make the top-up yourself or have a family member do it on your behalf. Either way, it counts toward your annual matching limit.
Heads-up on tax relief
Cash top-ups that get MRSS matching no longer enjoy tax relief from 2025. The maths still checks out: a 100% match usually outweighs the tax break, so you’re not losing out—just avoiding a double dip.
Looking ahead: disability inclusion in 2026
From 1 January 2026, the Matched Retirement Savings Scheme (MRSS) will open up to Singaporeans with disabilities—regardless of age. That means young professionals with disabilities can start building retirement savings early, with the same dollar-for-dollar match of up to $2,000 a year.
To qualify, they’ll need to meet the usual MRSS income and property criteria and be registered with the Ministry of Social and Family Development (MSF).
Registration details will be announced in the second half of 2025, so keep an eye out if this applies to you or someone in your family.
8. Making CPF Work Even as the Rules Shift
CPF is shifting, but its strengths remain—guaranteed returns, hedging against inflation, and steady compounding for a secure retirement. These changes aren’t roadblocks. They’re reminders to act early, top up smartly, and align your strategy with new rules.
With the right moves, CPF can work in your favour. Stay informed, plan ahead, and your future retired self will thank you.
For full details, check the official CPF website or speak with a qualified financial adviser.
About the author
Caleb Leong is passionate about travelling the world and getting involved in cross-cultural works. Freelance digital marketing and content writing is a way for him to express himself creatively while earning his keep. He unwinds by diving into a variety of music genres. Living in a digitally disrupted world, he’d like to offer a different perspective on finances to show people the possibilities of what goes beyond a typical “Singaporean life”.
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