Proposed The Government will introduce a 5-year MMSS from January 2026, to boost MediSave adequacy for seniors with lower balances.
Under the MMSS, the Government will match every dollar of voluntary cash top-ups to the MediSave Account (MA) of eligible Central Provident Fund (CPF) members, up to an annual cap of $1,000. Anyone, including their families, employers, and the community, can make the top-ups to eligible members’ CPF MA. Givers will not receive income tax relief (“CPF Cash Top-Up Relief”) for cash top-ups that attract the MMSS matching grant.
To be eligible for the MMSS, the CPF member whose CPF MA is being topped up must:
MMSS eligibility is automatically assessed every year, and the CPF Board will notify eligible members at the beginning of each year, from January 2026. Members can also check their eligibility via the CPF website from January 2026. Matching grants by the Government will be disbursed to eligible members in the following year.
In 2019, the Government announced that CPF contribution rates would be raised gradually over the next decade or so for Singaporean and Permanent Resident workers aged above 55 to 70 (see Table 1). Once the increases have been fully implemented, workers aged above 55 to 60 will have the same CPF contribution rates as younger workers.
Table 1: Current and Target CPF Contribution Rates (Employer + Employee) by Age Band
| Age Band | 2016-2021 | Current CPF Contribution Rates (As of 1 January 2025) | By ~ 2030 |
|---|---|---|---|
| 55 and below | 37.0% | No Change | No Change |
| Above 55 to 60 | 26.0% | 32.5% | 37.0% |
| Above 60 to 65 | 16.5% | 23.5% | 26.0% |
| Above 65 to 70 | 12.5% | 16.5% | 16.5% |
| Above 70 | 12.5% | No Change | No Change |
Notes:
The Government has implemented the increase in senior workers’ CPF contribution rates for workers aged above 55 to 70 each year since 1 January 2022. The target contribution rates for senior workers aged above 65 to 70 were reached in 2024.
The next increase in senior workers’ CPF contribution rates for workers aged above 55 to 65 will take place on 1 January 2026, as shown in Table 2. The increase in contribution rates will be fully allocated to the CPF Retirement Account.
Additionally, the Government will provide employers with a one-year CPF Transition Offset equivalent to half of the 2026 increase in employer CPF contribution rates for every Singaporean and Permanent Resident worker they employ aged above 55 to 65 (see Table 2). This will be provided automatically; employers do not need to apply for the offset.
Table 2: CPF Contribution Rates for Senior Workers from 1 January 2026
| CPF Contribution Rates from 1 January 2026 | CPF Contribution Rates from 1 January 2026 | CPF Contribution Rates from 1 January 2026 | ||
|---|---|---|---|---|
| Age Band | Total | Employer | Employee | CPF Transition Offset for 2026 |
| 55 and below | No Change | No Change | No Change | No Change |
| Above 55 to 60 | 34.0% | |||
| (+1.5%-pt) | 16.0% | |||
| (+0.5%-pt) | 18.0% | |||
| (+1%-pt) | 0.25%-pt | |||
| Above 60 to 65 | 25.0% | |||
| (+1.5%-pt) | 12.5% | |||
| (+0.5%-pt) | 12.5% | |||
| (+1%-pt) | 0.25%-pt | |||
| Above 65 to 70 | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) | No Change (Target contribution rates were reached in 2024) |
| Above 70 | No Change | No Change | No Change | No Change |
Notes:
| Disclaimer
| This online newsletter and website has been prepared by Crowe Horwath First Trust (”Crowe Singapore”) and should be used as a general guide only. No reader should act solely upon any information found on this website. We recommend that professional advice be sought before taking action on specific issues and making significant business decisions. Crowe Singapore expressly disclaims all and any liability to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this website. While every effort has been made to ensure the accuracy of the information contained herein, Crowe Singapore shall not be responsible whatsoever for any errors or omissions in it. |
|---|
| About Crowe Singapore |
| A member of Crowe Global, a top 10 accounting network, Crowe Singapore is an award-winning and one of the fastest-growing full-fledged professional services firms in Singapore. Crowe Singapore leverages its core strengths in audit, tax and accounting, to provide a full suite of professional services, serving the needs of start-ups, small and medium enterprises, public-listed entities, multinational corporations and financial institutions. To learn more, please visit www.crowe.sg |
| 9 Raffles Place, #19-20 Republic Plaza Tower 2, Singapore 048619 |
| © 2025 Crowe Singapore |
Grants, Funding & Other Support
Reach out to us via email: [email protected]
Tax involves far more than tax returns demanded by tax authorities: Every transaction has tax consequences. We are here to help you achieve your business objectives in the most tax-efficient manner.
To learn more, click here.
<aside> 📬 Subscribe to Receive our Complimentary Tax and Transfer Pricing Updates, Straight to your Inbox. With a wealth of resources on tax and transfer pricing issues and developments available through our Global network, we will be able to provide you with insights from around the world as and when they are available. To learn more and subscribe, click here.
</aside>