[SINGAPORE] With just over a week to go until the new year, the Central Provident Fund (CPF) Board is set to adopt some changes to ensure that the CPF system remains relevant and helps members build up their savings.
Six changes are set to roll in with 2026, including those to the Matched Retirement Savings Scheme, CareShield Life and CPF contribution rates.
Expansion of Matched Retirement Savings Scheme
The Matched Retirement Savings Scheme (MRSS) will be expanded to eligible Singaporeans with disabilities of all ages to help them save up for their retirement early.
Currently, the scheme helps seniors with lower retirement savings to save more for their retirement through dollar-for-dollar matching grants of up to $2,000 a year on voluntary cash top-ups made to their retirement savings, with a lifetime limit of $20,000.
The eligibility for MRSS is automatically assessed at the beginning of each year and the government’s matching grant will be credited to eligible members’ special account (SA) or retirement account (RA) in the following year.
However, cash top-ups that attract the government matching grant will not qualify for tax relief.
Start of Matched MediSave Scheme
As announced at Budget 2025, the government will also match up to S$1,000 a year on voluntary cash top-ups made to MediSave Accounts (MA) of eligible members via the Matched MediSave Scheme (MMSS).
The new MMSS aims to boost the healthcare savings of Singaporeans aged 55 to 70 with lower MediSave savings, and will commence from Jan 1 for a period of five years.
Eligibility for MMSS is automatically assessed at the beginning of each year, starting from January 2026, and the government’s matching grant will be credited to eligible members’ MA in the following year.
Like the MRSS, cash top-ups that attract the matching grant will not qualify for tax relief.
Enhancements to CareShield Life
Following the first review of the CareShield Life scheme this year, changes to benefits, coverage and premiums will be implemented progressively from January 2026.
The annual payout growth rate will double from 2 to 4 per cent from 2026 to 2030, while monthly CareShield Life payouts will also be increased.
The government will provide over S$570 million more in premium support, on top of existing premium subsidies, to offset the premium increase over the next five years. Premiums will also remain fully payable by MediSave.
Singapore will also reinstate the underwriting criteria as planned for older individuals born in 1979 or earlier to moderate the extent of premium increases for all older policyholders.
With this adjustment, older individuals born in 1979 or earlier will be able to enrol in CareShield Life only if they have no pre-existing disabilities.
Rise in contribution rates for platform workers
Under the Platform Workers Act, an increase in CPF contribution rates is being phased in from 2025 to 2029 for platform workers born in or after 1995, and those born before 1995 who opt in to increased CPF contributions.
Platform workers (PWs) are individuals such as ride-hailing or food/parcel delivery riders. They receive payments for tasks, while subject to platforms’ control over assignments and pay.
Their contribution rates will gradually increase over the five years to match employer-employee CPF rates – that is, 20 per cent from platform workers and 17 per cent from platform operators.
These CPF contributions will be allocated to their Ordinary, Special or Retirement, and MediSave Accounts to support their housing, retirement and healthcare needs.
From 2025 to 2028, the Platform Workers CPF Transition Support (PCTS) scheme will also provide monthly cash support to lower-income platform workers to offset part of the year-on-year increase in the platform worker’s share of CPF contributions.
The CPF Board on Tuesday (Dec 23) said 16,500 PWs have benefited from PCTS from March to June this year, which is based on CPF contributions made from January to April.
In 2026, the PCTS will offset 75 per cent of the increase in platform worker’s share of Ordinary and Special or Retirement Account contributions.
Eligible lower-income platform workers earning S$3,000 and below and born in 1995 or later, or who are born before 1995 and opted in to increase their CPF contributions, will receive PCTS.
Assessment for PCTS is automatic, and platform workers will not need to apply.
Eligible platform workers will also continue to be supported through the Workfare Income Supplement (WIS) scheme and will receive WIS payments monthly instead of annually.
Like for PCTS, workers’ eligibility for WIS will be assessed automatically.
Increase in contribution rates for senior workers and CPF Transition Offset
The total CPF contribution rates for employees aged above 55 to 65 will be raised by 1.5 percentage points from next year.
The 1.5 percentage points consist of a 0.5 percentage point increase in employer contributions and a 1 percentage point increase in employee contributions.
“This increase is in line with the recommendations of the Tripartite Workgroup on Older Workers to strengthen senior workers’ retirement adequacy,” said the CPF Board.
The increased CPF contribution rates for senior workers will be allocated to their RA.
Meanwhile, the CPF Transition Offset, equivalent to half of the 2026 increase in employer CPF contributions, will be automatically provided to employers to cushion the impact of the increase on business costs for one year.
Increase in CPF Ordinary Wage Ceiling
Finally, the CPF Ordinary Wage (OW) ceiling will be increased to S$8,000 from 1 January 2026.
This will be the last round of increases that took place in four steps from September 2023 to allow employers and employees to adjust to the changes.
The increase in the CPF OW ceiling “aims to keep pace with rising wages and ensure the CPF system remains relevant in meeting the retirement needs of the majority of employees”.
It will boost members’ overall total monthly earnings after factoring in the increased CPF contributions from employers, though the CPF annual wage ceiling of S$102,000 remains unchanged.
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