Budget 2026: Up to S$1,500 CPF top-up for seniors, higher contribution rates for older workers
To mitigate rise in business costs from increased rates, government will provide employers with a one-year CPF transition offset
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[SINGAPORE] Retirement support will be stepped up this year, with Central Provident Fund (CPF) top-ups and plans to raise CPF contribution rates for senior workers.
Eligible Singaporeans will receive up to S$1,500 in top-ups to their CPF accounts, said Finance Minister Lawrence Wong.
These top-ups are for Singaporeans aged 50 and above, and with CPF retirement savings below the Basic Retirement Sum, he said in his Budget speech on Thursday (Feb 12).
Those with lower balances will receive larger top-ups, so that support is targeted at “where it is most needed”, added Wong, who is also prime minister.
Singapore will also proceed with the next step of planned CPF contribution rate increases for senior workers in 2027.
On Jan 1, 2027, CPF contribution rates will be up 1.5 percentage points for workers aged above 55 to 60, and one percentage point for those aged above 60 to 65 (*see amendment note).
This brings total CPF contribution rates to 35.5 per cent for those aged above 55 to 60, and the target 26 per cent for those aged above 60 to 65.
The increase is in line with the recommendation from the Tripartite Workgroup on Older Workers, where the government announced in 2019 that CPF contribution rates would be raised gradually for Singaporean and permanent resident workers aged above 55 to 70.
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The Republic reached the target contribution rate of 16.5 per cent for workers aged above 65 to 70 in 2024.
The increase in contribution rates will be fully allocated to the CPF Retirement Account. For those who have set aside the full retirement sum, these contributions will be channelled to the Ordinary Account.
To mitigate the rise in business costs due to this increase, the government will provide employers with an automatic one-year CPF transition offset.
This offset is equivalent to half of the 2027 increase in employer CPF contribution rates for every Singaporean and permanent resident worker they employ aged above 55 to 65.
Meanwhile, Singapore will also top up the Long-Term Care Support Fund by S$400 million to fund additional subsidies, PM Wong said.
This comes as the government recently enhanced CareShield Life to offer higher payouts, and increased CareShield Life premium subsidies.
For more of BT’s Budget 2026 coverage, go to bt.sg/budget26
*Amendment note: Article changed to reflect the change in percentage points instead of basis points.
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