Employer CPF contribution rate to go up by 0.5%; CPF Salary Ceiling to increase to $5,000

18 February 2011

1. Minister for Finance, Mr Tharman Shanmugaratnam, announced in his FY2011 Budget Statement in Parliament this afternoon, that the Government will raise the employers’ CPF contribution rate by 0.5 percentage point.  The additional CPF contribution will be paid into the Special Account and will help Singaporeans save more for their retirement needs.  Please refer to Annex A for a detailed schedule of the new contribution rates.
2. To keep pace with income growth in recent years, the CPF salary ceiling will also be revised from $4,500 to $5,000 per month. This will align the salary ceiling back to the 80th percentile income. Both CPF changes will take effect from 1 September 2011.
   
   For More Information
3. Further details on the CPF changes are available on CPF Board’s website: www.cpf.gov.sg. You can also contact CPF Board through:
   
   Hotline number: 1800-227-1188;
   Email: employer-accounts@cpf.gov.sg

Annex A - CPF Contribution Rates Changes