SINGAPORE: The Central Provident Fund (CPF) contribution rates for those aged above 55 to 65 will increase by 1.5 percentage points in 2026, Prime Minister Lawrence Wong announced in his Budget statement on Tuesday (Feb 18).
This will start on Jan 1, 2026, bringing the CPF contribution rates for workers aged above 55 to 60 to 34 per cent.
For workers aged above 60 to 65, their CPF contribution rates will go up to 25 per cent.
The respective increases in CPF contribution will be fully allocated to the CPF retirement account.
During his Budget speech in parliament, Mr Wong, who is also the finance minister, said that the increase in CPF contribution rates was made after the recommendations of the Tripartite Workgroup on Older Workers, which was formed in May 2018.
In line with the workgroup’s recommendations, the government announced in 2019 that CPF contribution rates would be raised gradually over the next decade or so for Singaporean and permanent resident workers aged above 55 to 70.
When the increases are fully implemented, those aged above 55 to 60 will have the same CPF contribution rates as younger workers.
Mr Wong said that employers will continue to be provided with the CPF Transition Offset for another year, to cover half the increase in employer contributions for 2026.
Employers do not need to apply for the offset as it will be provided automatically.
“With this move, senior workers can build up their retirement savings, and businesses will get continued support from the government to cushion the impact on business cost,” said Mr Wong.
To support senior workers, the Senior Employment Credit (SEC) will be extended by one year to end-2026, said Mr Wong.
The SEC provides wage offsets to employers that hire Singaporean workers aged 60 and above, and are earning less than S$4,000 a month.
The qualifying age of the highest SEC wage support tier will be raised from 68 years old to 69 years old, in line with the increase in the re-employment age.
Starting 2026, companies will be reimbursed 7 per cent of the wages of workers aged 69 and above, rather than 68 and above.
Companies will be reimbursed 4 per cent of wages for workers aged 65 to 68, and 2 per cent of wages for workers aged 60 to 64.
Later this year, the Ministry of Manpower (MOM) will convene a Tripartite Workgroup on Senior Employment, said Mr Wong.
The workgroup aims to review senior employment policies to improve the employability of older workers and increase the availability of jobs that better suit their needs.
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This will start on Jan 1, 2026, bringing the CPF contribution rates for workers aged above 55 to 60 to 34 per cent.
For workers aged above 60 to 65, their CPF contribution rates will go up to 25 per cent.
The respective increases in CPF contribution will be fully allocated to the CPF retirement account.
During his Budget speech in parliament, Mr Wong, who is also the finance minister, said that the increase in CPF contribution rates was made after the recommendations of the Tripartite Workgroup on Older Workers, which was formed in May 2018.
In line with the workgroup’s recommendations, the government announced in 2019 that CPF contribution rates would be raised gradually over the next decade or so for Singaporean and permanent resident workers aged above 55 to 70.
When the increases are fully implemented, those aged above 55 to 60 will have the same CPF contribution rates as younger workers.
Mr Wong said that employers will continue to be provided with the CPF Transition Offset for another year, to cover half the increase in employer contributions for 2026.
Employers do not need to apply for the offset as it will be provided automatically.
“With this move, senior workers can build up their retirement savings, and businesses will get continued support from the government to cushion the impact on business cost,” said Mr Wong.
Related:
SUPPORT FOR WORKERS AGED 60 AND ABOVE
To support senior workers, the Senior Employment Credit (SEC) will be extended by one year to end-2026, said Mr Wong.
The SEC provides wage offsets to employers that hire Singaporean workers aged 60 and above, and are earning less than S$4,000 a month.
The qualifying age of the highest SEC wage support tier will be raised from 68 years old to 69 years old, in line with the increase in the re-employment age.
Starting 2026, companies will be reimbursed 7 per cent of the wages of workers aged 69 and above, rather than 68 and above.
Companies will be reimbursed 4 per cent of wages for workers aged 65 to 68, and 2 per cent of wages for workers aged 60 to 64.
Later this year, the Ministry of Manpower (MOM) will convene a Tripartite Workgroup on Senior Employment, said Mr Wong.
The workgroup aims to review senior employment policies to improve the employability of older workers and increase the availability of jobs that better suit their needs.
Continue reading...