Question 1

What is the CPF Ordinary Wage (OW) ceiling in 2026?

Accepted Answer

The Ordinary Wage (OW) ceiling for mandatory monthly CPF contributions is $8,000 per month in 2026 (gradually increased from $6,000 in 2023). Wages earned beyond $8,000/month are not subject to monthly employee or employer CPF deductions.

Question 2

How does age affect my CPF contribution and account allocation rates?

Accepted Answer

From age 55 onwards, employee and employer contribution rates decrease, and a higher proportion of your CPF inflows is directed toward the Special/Retirement and MediSave accounts to bolster retirement income and healthcare protection rather than housing (OA).

Question 3

What happens to MediSave contributions once I hit the Basic Healthcare Sum (BHS)?

Accepted Answer

When your MediSave Account balance reaches the statutory BHS cap ($79,000 in 2026), any subsequent MediSave contributions automatically overflow into your Special Account (if below age 55) or Retirement Account (if age 55+), or Ordinary Account if your retirement sum is met.

Question 4

Are employer CPF contributions taxable as income in Singapore?

Accepted Answer

No. Mandatory statutory employer CPF contributions are fully tax-exempt for employees in Singapore, and your employee CPF contributions qualify for dollar-for-dollar CPF relief on your IRAS personal income tax assessment.