As discussed in the 2011 Budget, the employer CPF Contribution rate and CPF Salary Ceiling will be raised from 1 Sep 2011 onwards.

In short, the employer’s contribution rate to the CPF will be raised by 0.5 – 15.5% to 16%.  At the same time, the CPF Salary Ceiling will be increased from $4,500 to $5,000 per month to keep pace with income growth.