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 wages that would attract CPF contributions, and is currently set at $6,000.
The increase was announced by Deputy Prime Minister and Finance Minister Lawrence Wong in his Budget 2023 statement on Tuesday.
The change will take place progressively over four steps to allow employers and employees to adjust to the increase. On Sept 1, 2023, the monthly salary ceiling will increase to $6,300. On Jan 1, 2024, it will rise further to $6,800.
By Jan 1, 2025, the ceiling will hit $7,400, and by Jan 1, 2026, it will reach $8,000.
Employees aged 55 and below contribute 20 per cent of their wages to their CPF, while their employers contribute 17 per cent of these employees' wages.
This formula remains unchanged, but the contributions must be made on monthly wages of up to $8,000 from Jan 1, 2026, instead of $6,000, as is done now.
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.
This story is from the February 15, 2023 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 15, 2023 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
John Galliano leaves Maison Margiela after 10 years
British designer John Galliano (right) said on Dec 11 that he was stepping down as creative director at Maison Margiela after 10 years at the French label which helped rehabilitate his scandal-tainted image.
Mixed reactions to Park Sung-hoon playing transgender character in Squid Game 2
In the highly anticipated second season of Squid Game, South Korean actor Park Sung-hoon will take on the role of a transgender woman in a casting that has received mixed reactions online.
Jamie Foxx reveals mystery illness on Netflix show
Hollywood actor and comedian Jamie Foxx (right) has finally opened up about the mystery illness that plagued him in 2023.
Selena Gomez engaged to Benny Blanco
Selena Gomez has said \"yes\" to her boyfriend Benny Blanco.
Can never book a table at Na Oh? Try now
The Korean restaurant is adding more slots at dinner time, to make it easier to secure a booking
Presents for beauty lovers
Here are make-up and skincare bundles and advent calendars perfect for gifting or keeping
No world c'ship medal but Teong sets 50m fly mark
Teong Tzen Wei fell short in his bid for Singapore's first medal at the world short-course swimming championships on Dec 11, though he still had reason to cheer with a national mark in the 50m butterfly.
TEARS SPEAK VOLUMES
Gukesh, 18, aims to stay on top of chess world; Ding proud of effort despite error
Olmo urges Barcelona to keep winning mentality
Barcelona midfielder Dani Olmo said his team \"want more\" after locking up progress to the Champions League play-offs with a 3-2 win at Borussia Dortmund on Dec 11.
Arteta applauds 'special, amazing' Saka after brace
LONDON - Mikel Arteta praised Bukayo Saka's \"incredible talent\" after the Arsenal forward's double inspired a 3-0 win over Monaco on Dec 11 that moved his side closer to the Champions League last 16.
