The Central Provident Fund (CPF) monthly salary ceiling will be raised in stages to $8,000 by 2026 so that it keeps pace with rising salaries and helps middle-income Singaporeans save more for their retirement. The CPF monthly salary ceiling caps the quantum of ordinary...
The change to the monthly salary ceiling was last made in 2016 to keep pace with wage growth. Then, the ceiling was adjusted from $5,000 to $6,000, covering wages up to the 80th percentile of resident incomes.
The Finance Ministry said in a fact sheet that there will be no change to the CPF annual ceiling at this point, but it will be reviewed periodically to ensure it continues to cover the broad majority of CPF members. DPM Wong also announced that the Government will continue with the next hike in CPF contribution rates for older workers in 2024. The adjustments were in line with the recommendations of the tripartite workgroup on older workers, and the first two steps of increases took place on Jan 1, 2022 and Jan 1, 2023.
To mitigate the rise in business costs due to this increase, the Government will provide employers with a one-year CPF transition offset equivalent to half of the 2024 increase in employer CPF contribution rates for every Singaporean and permanent resident worker aged above 55 to 70. Employers need not apply for the offset as it will be provided automatically, said MOF.
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