CPF Contribution Ceiling 2025: Ordinary Wage & Annual Cap

Few numbers matter more to Singaporeans, employees, and their employers than the CPF Ordinary Wage ceiling. Every year it determines how much of your salary flows into your Central Provident Fund, and every change lands directly on your monthly pay and retirement savings. In 2025, the ceiling hits S$7,400 per month — part of a phased climb to S$8,000 by 2026 — and while that sounds straightforward, the real picture involves age-based rates, an annual cap, and a few traps that can catch you off guard.

2025 Ordinary Wage Ceiling (Monthly): S$7,400 · 2026 Ordinary Wage Ceiling (Monthly): S$8,000 · Annual Salary Ceiling (Fixed): S$102,000 · Additional Wage Ceiling: S$102,000 minus OW already contributed · Employer CPF Rate (Age <55): 17% · Employee CPF Rate (Age <55): 20%

The table below summarises the key figures for the 2025 CPF landscape.

What is the maximum CPF contribution for 2025?

The maximum CPF contribution for 2025 depends on two variables: your monthly salary and your age. For an employee under 55 earning at least S$7,400 per month, the employer contributes 17% and the employee contributes 20%, resulting in a total contribution of 37%. But the ceiling applies only to the first S$7,400 of monthly wages — income above that is not subject to ordinary wage CPF, as CPF Board (Singapore’s CPF regulator) confirms.

What is included in the maximum CPF contribution?

Total CPF contributions cover three allocation accounts: the Ordinary Account (OA), Special Account (SA), and MediSave Account (MA). The split depends on age but the total rate does not. For a worker under 55, the 37% total is divided as 23% OA, 6% SA, and 8% MA, according to CPF Board (Singapore’s CPF regulator).

How is the maximum contribution calculated?

• Monthly OW ceiling (S$7,400) x (employer rate + employee rate) = maximum monthly contribution
• For an employee under 55: S$7,400 x 37% = S$2,738 per month
• Annual maximum contribution for those earning S$102,000 or less: S$37,740 (including additional wages)

The implication: the ceiling forces higher earners to save more toward retirement, but only up to the cap. Income above S$7,400 per month escapes ordinary wage CPF entirely.

The pattern: this ceiling structure ensures that higher earners do not receive unlimited CPF contributions, balancing employer costs and retirement savings.

What is the Ordinary Wage (OW) ceiling?

The Ordinary Wage ceiling is the maximum monthly salary amount subject to CPF contributions. For wages earned in 2025, that figure is S$7,400. Any monthly pay above S$7,400 is not subject to CPF as ordinary wages, though it may still attract CPF as additional wages, as IRAS (Singapore’s tax authority) explains.

What is the difference between Ordinary Wage and Additional Wage ceiling?

Ordinary Wages are monthly contractual pay (salary, commissions). Additional Wages include bonuses, leave pay, and other non-regular payments. The Additional Wage ceiling for 2025 is S$102,000 minus total Ordinary Wages already subject to CPF for that year, per IRAS (Singapore’s tax authority).

Why is the OW ceiling being raised?

The government launched a phased increase starting September 2023 to keep pace with rising wages and strengthen retirement savings. As CPF Board (Singapore’s CPF regulator) notes, the ceiling climbed from S$6,000 (pre-September 2023) to S$6,300, then S$6,800 (2024), S$7,400 (2025), and ultimately S$8,000 by January 2026.

What this means: the OW ceiling increase is a direct cost driver for employers, requiring budget adjustments for payroll.

What is the CPF annual salary ceiling of S$102,000?

The CPF annual salary ceiling is a fixed limit of S$102,000 that has not changed despite the monthly OW ceiling increases. CPF Board (Singapore’s CPF regulator) confirms it remains at S$102,000 for 2025 and 2026. This cap covers all Ordinary and Additional Wages combined in a calendar year.

How does the annual salary ceiling interact with the monthly ceiling?

Total CPF contributions are based on the lower of actual wages or the applicable ceiling — monthly and annual. If an employee earns S$7,400 monthly for 12 months, their total ordinary wages equal S$88,800. That leaves room for up to S$13,200 in additional wages before hitting the S$102,000 annual cap.

Will the annual ceiling change in 2025?

No. IRAS (Singapore’s tax authority) explicitly states the annual salary ceiling remains at S$102,000 throughout the phased monthly increases.

The pattern: the government uses the monthly OW ceiling alone to push more savings into CPF, leaving the annual ceiling unchanged to limit the total impact on high earners and employers.

What is the CPF cap ceiling for 2026?

From 1 January 2026, the monthly Ordinary Wage ceiling rises to S$8,000. CPF Board (Singapore’s CPF regulator) announced this as the final step in the current phased increase. The annual salary ceiling of S$102,000 remains unchanged for 2026.

What is the new salary ceiling for 2026?

• Monthly OW ceiling: S$8,000 (from 1 Jan 2026)
• Annual salary ceiling: S$102,000 (unchanged)
• Additional Wage ceiling: S$102,000 minus total Ordinary Wages for 2026

Are there any other changes planned for 2027?

Yes. CPF Board (Singapore’s CPF regulator) notes that from 1 January 2027, the Ordinary Wage ceiling and contribution rates will be raised again. Exact figures are not yet published, but the direction is clear: further increases aimed at strengthening retirement adequacy for an ageing population.

What this means: 2026 is not the end of the road. Employers and employees both need to budget for continued upward adjustments in CPF obligations through the rest of the decade.

The implication: the 2027 changes could fundamentally alter the CPF contribution landscape, especially for those earning above the current annual cap.

Will CPF contribution rates change in 2025?

For 2025, CPF contribution rates remain unchanged from 2024. CPF Board (Singapore’s CPF regulator) confirms the rates are stable for all age groups. What changes is the ceiling — meaning more salary falls within the contribution band, even though the percentage stays the same.

The table below shows the contribution rates by wage bracket for employees under 55.

Do contribution rates vary for older employees?

Yes, and the differences are significant. For employees aged above 55 to 60, the total rate drops to 34% (employer 16%, employee 18%). For those aged above 60 to 65, it falls further to 25% (employer 12.5%, employee 12.5%). CPF Board (Singapore’s CPF regulator) publishes the full table. The trade-off: older workers keep more take-home pay but build their CPF savings more slowly.

The pattern: stable rates combined with a rising ceiling means the government is increasing mandatory savings without changing the percentage contribution.

What is the voluntary top-up limit to my 3 CPF accounts?

Voluntary contributions above the mandatory ceiling are allowed, but they are capped. The CPF Annual Limit — the total of mandatory plus voluntary contributions in a year — stands at S$37,740 for 2025, as Omni HR (Singapore HR platform) notes. This means once mandatory contributions from your employer and yourself hit that ceiling, no further voluntary contributions are permitted.

Can I make voluntary contributions above the mandatory ceiling?

You can make voluntary contributions under the Retirement Sum Topping-Up (RSTU) scheme, which has separate limits not tied to the annual limit. The RSTU cap for 2025 is the difference between your current Retirement Account balance and the Full Retirement Sum (FRS), currently S$205,800. CPF Board (Singapore’s CPF regulator) administers this scheme separately from mandatory contributions.

What are the annual limits for top-ups under the RSTU scheme?

• Cash top-up to own Special/Retirement Account: up to the FRS less current RA balance
• Cash top-up to family member’s account: up to the FRS less their RA balance per year
• Tax relief: up to S$8,000 per year for own top-ups, S$8,000 for family top-ups per member

Why this matters: the voluntary top-up system creates a path for those who want to save more for retirement — but the tax relief caps mean there’s a break point beyond which you get no deduction.

Timeline: CPF ceiling changes from 2023 to 2027

The pattern: a steady climb every 12 to 16 months since 2023, with the largest single jump being from S$6,800 to S$7,400 in 2025 — a S$600 increase that lifted the maximum monthly contribution for high earners by S$222.

What we know and what remains unclear

From 1 January 2025, the CPF monthly salary ceiling will be raised to S$7,400.

— CPF Board announcement (Dec 2024), CPF Board (Singapore’s CPF regulator)

To keep pace with rising wages and strengthen retirement adequacy, the Ordinary Wage ceiling and contribution rates will be raised from 1 Jan 2027.

— CPF Board (future changes), CPF Board (Singapore’s CPF regulator)

Notwithstanding the increases to the CPF monthly salary ceiling, the CPF annual salary ceiling will remain at S$102,000.

— IRAS (CPF Relief for employees), IRAS (Singapore’s tax authority)

The first S$7,400 of monthly salary is subject to CPF contributions, while income above that is not subject to CPF as ordinary wage.

— QuickHR, QuickHR (Singapore HR technology platform)

The 2025 CPF ceiling increase puts more retirement savings into workers’ accounts but raises payroll costs for employers. For a company with 50 staff earning S$7,500 monthly, the jump from the S$6,800 ceiling means approximately S$5,950 in additional employer CPF contributions per month. Employees in the same scenario see S$7,000 more flowing into their CPF accounts each month. For Singaporean workers, the trade-off is clear: less take-home pay today for more retirement security tomorrow.

Related reading: Singapore Median Household Income 2025

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