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CPF contribution rate to increase 1%

Increase will be introduced in two phases to moderate the impact on employers

At the 2010 May Day Rally, PM Lee Hsien Loong announced that the Government will raise the employers’ CPF contribution rate by 1%.

The increase will be done in two phases to moderate the impact on employers.The first 0.5% increase, which will be implemented on 1 September 2010, will go into the Medisave Account. The remaining 0.5 per cent will be effected six months later on 1 March 2011, and will be paid to the Special Account.