Dear Valued Clients
As recommended by the Tripartite Workgroup on Older Workers, the CPF contribution rates for employees aged above 55 to 70 will be increased to strengthen their retirement adequacy.
The revised CPF contribution rates for Singapore Citizens and Singapore Permanent Residents (from third year and onwards) will take effect from 1 January 2022.
There is no change to the CPF contribution rates for other age groups.
For employees earning monthly wages of more than $750:
|
Employee’s age (years) |
Current (% of wage) |
CPF Contribution Rates Changes from 1 January 2022 |
||
|---|---|---|---|---|
|
Total (% of wage) |
By Employer (% of wage) |
By Employee (% of wage) |
||
| Above 55 to 60 | 26 | +2 | +1 | +1 |
| Above 60 to 65 | 16.5 | +2 | +1 | +1 |
| Above 65 to 70 | 12.5 | +1.5 | +0.5 | +1 |
- The increase in the CPF contribution rates will be fully allocated to the employees’ Special Account to provide a bigger boost to their retirement income.
- For those earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.
- There are no changes to the graduated contribution rates for first- and secondyear Singapore Permanent Residents (SPRs).
- There are no changes to the Ordinary Wage (OW) Ceiling and Additional Wage Ceiling.
The revised CPF contribution rates are stated below:
The following table summarises the contribution rates for Singapore Citizens and SPRs (from third year and onwards) from 1 January 2022.
|
Employee’s age (years) |
CPF Contribution Rates from 1 January 2022 (monthly wages > $750) |
||
|---|---|---|---|
|
Total (% of wage) |
By Employer (% of wage) |
By Employee (% of wage) |
|
| 55 & below | 37 | 17 | 20 |
| Above 55 to 60 | 28 | 14 | 14 |
| Above 60 to 65 | 18.5 | 10 | 8.5 |
| Above 65 to 70 | 14 | 8 | 6 |
| Above 70 | 12.5 | 7.5 | 5 |
Kindly note that these changes will be included in our next update estimated July-August 2021. Please reach out if you have any other concerns at support@peoplecentral.co
