Increase in CPF Contribution Rates for Older Workers from September 2012
17 February 2012
- Deputy Prime Minister and Minister for Finance Mr. Tharman Shanmugaratnam announced in his FY2012 Budget Statement that the Government will raise CPF contribution rates for older workers aged 50 to 65, to help them better prepare for retirement.
- The changes are as follows:
- For employees aged between 50 and 55, their contribution rates will go up by 2.5 percentage points – 2 percentage points from the employer and 0.5 percentage points from the employee – to bring their total CPF contributions up to 32.5% from 30%.
- For those between 55 and 60, their contribution rates will go up by 2 percentage points – 1.5 percentage points from the employer and 0.5 percentage points from the employee.
- For workers between 60 and 65, their employer contribution rate will increase by 0.5 percentage points, with no increase in their employee contribution rate.
Table 1: New CPF Contribution Rates for Singaporean Workers aged 50-55, 55-60 and 60-65
* % of wages
||New contribution rates* from Sep 2012
(increases from current rates are in brackets)
|Increase credited into
|> 50 - 55
|> 55 - 60
|> 60 - 65
- The additional CPF contribution will be paid into the Ordinary, Special and Medisave Accounts (OA, SA and MA), with more allocated into SA. Please refer to Annex A for a detailed schedule of the new contribution rates for employees.
- These changes will take effect from 1 September 2012, in line with the first disbursement of the enhanced Special Employment Credit (SEC).
- For the self-employed who are aged 50 and above, their Medisave contribution rates will also be raised from 9 to 9.5 percentage points from 1 January 2013.This change will align the MA contribution rates for older SEPs with that for older employees. Please refer to Annex B for details on the new MA contribution rates for SEPs.
For More Information
- Further details on the changes to CPF contribution rates are available on CPF Board’s website: www.cpf.gov.sg
You can also contact CPF Board through:
Hotline number: 1800-227-1188
Email: email@example.com; or firstname.lastname@example.org
Annex A - CPF Contribution Rates Changes
Annex B - Medisave Contribution Rates for Self-Employed Persons with Annual Trade Income of $18,000 and above