Changes to CPF Contribution Rates
The CPF Contribution Rates will be revised upwards from 1 Jan 2016. The move is in line with the Government’s effort to help Singaporeans accumulate more CPF savings for their retirement. The new contribution rates for private sector and public sector non-pensionable employees who are:
- Singapore Citizens; or
- Singapore Permanent Residents (SPR) from the 3rd year and onwards since obtaining SPR status; or
- SPR in the first 2 years of obtaining SPR status but who have opted to contribute at full rates.
The changes are summarised below:
Changes to Ordinary Wage Ceiling
Additionally, the ordinary wage (OW) ceiling for private sector employees will be increased from the current SGD 5000 per month, to SGD 6000 per month.
Changes to Additional Wage Ceiling
With this change, the Additional Wage Ceiling will be increased from the current SGD 85,000 per year to SGD 102,000 per year (equivalent to 17 x CPF salary ceiling of 6000). Correspondingly, the formula to calulate the amount of additional wages that attract CPF will be “SGD 102,000 – total ordinary wages subject to CPF contributions in the year”.
Changes to CPF Annual Limit
Likewise, the CPF Annual Limit, defined as the maximum amount of contributions that a CPF member can recieve in a year, will be increased from SGD 31,450 to SGD 37,740 (equivalent to 17 months x $6,000 x 37%).