In line with the regulatory updates for 2026, several changes have been applied to CPF.
Below are the key changes for your reference:
- Increase in the CPF Ordinary Wage (OW) ceiling
- Increase in CPF contribution rates
- Optimized CPF configuration, effective 2026
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Increase in the CPF Ordinary Wage (OW) ceiling
Effective January 1, 2026, the new CPF OW ceiling will be $8,000.
There will be a $600 increase per month in the CPF OW ceiling due to this change.
Employees earning less than $8,000 per month will not be affected by this change.
This update will only impact higher-earning employees who earn more than $8,000 per month, as CPF contributions will now be calculated based on the increased OW ceiling.
But take note that the CPF Annual Salary Ceiling will remain at $102,000.
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Increase in the CPF Ordinary Wage (OW) ceiling
Effective January 1, 2026, the CPF contribution rate increase for certain age groups, mainly those aged 55 to 65.​
Only the affected employees will see a slightly higher contribution amount. No updates are needed in the system, as JustLogin will handle this automatically. This change applies only to employees whose salary is above the CPF wage threshold
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Optimized CPF configuration, effective 2026.
This is the Optimized CPF Configuration. Effective January 2026, we are moving toward a more dynamic method of calculating the Additional Wage (AW) ceilings.
OLD
Previously, there were three options for determining the AW Ceiling computation in the payroll configuration.
Option 1: Designed for companies with stable monthly incomes, where salaries are rarely changed.
Option 2: Suited for companies with variable monthly ordinary wages but with predictable annual totals, such as those paying fixed annual bonuses.
Option 3: Intended for companies with highly variable monthly incomes, such as roles with significant commissions or incentives.
All three options are compliant, as reconciliation is performed at the end of the year. However, challenges arise when the selected option does not fully meet a company’s specific payroll needs.
NEW (2026)
Since the total ordinary wages (OW) subject to CPF cannot be accurately determined until the end of the year, an estimate needs to be made. We’re now giving you the option to choose how this estimate is calculated with a more optimised method. — which leads us to the Optimised CPF configuration.​
The current option 2 and 3 options will still remain, and in January these options will be grouped together under ‘other alternate options.
Under the new Optimised CPF configuration, the system uses dynamic projections based on an employee’s current Ordinary Wages (OW) and the remaining months in the year.
This means the AW ceiling adjusts automatically whenever there is a salary change.
It follows CPF’s framework, even for bonuses or variable pay, ensuring accurate calculation throughout the year.
CPF calculates the AW ceiling as $102,000 minus the total Ordinary Wages (OW) subject to CPF for the year. In JustLogin, we apply the same logic using the same $102,000 cap.
The formula may appear more detailed because we show the full breakdown, including:
Accumulated OW from previous months and Projected OW based on the current month’s salary
However, the underlying concept remains the same:
Total OW for the year is deducted from $102,000 to determine the remaining AW ceiling.
Important things to take note of:
If your company is currently using Option 1, you don’t need to request anything — we will automatically shift you into the new Optimised Option starting January 2026.​Let's say in 2026 you are trying process a back pay run for 2025, it will still follow the 2025 logic, so nothing changes for your past months.​
For more details, you can watch this video recording covering the CPF 2026 in JustLogin [Video]