How much of your salary will you take home when the CPF monthly salary ceiling rises? And how will it affect the total monthly CPF contribution?
The Central Provident Fund monthly salary ceiling will be raised in stages from S$6,000 to S$8,000 by 2026
In short, this means employees and employers alike currently need to make CPF contributions for the first S$6,000 of monthly salaries. In his speech, Mr Wong said the move was to “keep pace with rising salaries” and would help middle-income Singaporeans save more for their retirement. From September 2023, when the monthly ceiling is raised to S$6,300, the same person with the same salary will contribute 20 per cent of their monthly wage to CPF – S$1,220 – since their monthly wage is now below the ceiling. This means that their take-home pay is S$4,880.
There will be no change to the CPF annual salary ceiling at this juncture, said the Ministry of Finance. This annual ceiling will be reviewed periodically to ensure it continues to cover the broad majority of CPF members, it added. From January 2026, when the monthly ceiling is S$8,000, the employer's contribution for such a worker will rise to S$1,360.
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