The Central Provident Fund (CPF) contribution rates for Singaporeans aged 55 to 65 will increase by 1.5 percentage points starting January 1, 2026. Prime Minister Lawrence Wong announced this change during his Budget 2025 speech on Tuesday. Workers aged 55 to 60 will see their CPF contribution rates rise to 34 percent, while those aged 60 to 65 will have a new rate of 25 percent.
The additional contributions will go directly into the CPF retirement account. Mr. Wong said the decision follows recommendations from the Tripartite Workgroup on Older Workers.
The government first announced plans in 2019 to gradually increase CPF contribution rates over the next decade for workers aged 55 to 70. The goal is for those aged 55 to 60 to eventually have the same CPF contribution rates as younger workers. The CPF Transition Offset will be extended for another year to help employers adjust.
CPF rates increase for older workers
It will cover half of the increase in employer contributions for 2026. “With this move, senior workers can build up their retirement savings, and businesses will continue to receive government support to cushion the impact on business costs,” said Mr. Wong.
To further support older workers, the Senior Employment Credit (SEC) will be extended by one year to the end of 2026. The SEC provides wage offsets to employers who hire Singaporean workers aged 60 and above earning less than S$4,000 a month. The qualifying age for the highest SEC wage support tier will also increase from 68 to 69, which is in line with the rise in the re-employment age.
Starting in 2026, companies will be reimbursed 7 percent of the wages of workers aged 69 and above, 4 percent for workers aged 65 to 68, and 2 percent for those aged 60 to 64. The Ministry of Manpower (MOM) will convene a Tripartite Workgroup on Senior Employment later this year. The workgroup aims to review senior employment policies to improve the employability of older workers and increase the availability of suitable jobs.
Other key announcements from the Budget 2025 include S$800 in CDC vouchers, up to S$760 in utility rebates for Singaporean households, and a $300 monthly allowance for mid-career workers taking part-time courses. These measures reflect the government’s ongoing efforts to support various demographics in the workforce and ensure financial stability for the aging population.
