Singapore’s Central Provident Fund (CPF) Board has made significant amendments in January 2025. This comes as another step to ensure the CPF system is relevant to current labour laws and remains a support to Singaporeans in building a stronger financial environment and addressing crucial factors like retirement, housing, and healthcare.
HR professionals in Singapore must ensure to be aware of all these changes and stay compliant. Understand these adjustments, ensure changes in payrolls, and communicate to the workforces for a clean and clear information prevailing effectively.
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CPF Contribution Rates For 2025
The CPF Contribution Rates Vary as per the age bands. The Following changes have been made and w.e.f from 1 January 2025.
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| Age of employee | CPF Contribution by Employer | CPF Contribution by Employee | Total CPF Contribution Rate |
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 15.50% | 17% | 32.50% |
| Above 60 to 65 | 12% | 11.50% | 23.50% |
| Above 65 to 70 | 9% | 7.50% | 16.50% |
| Above 70 | 7.50% | 5% | 12.50% |
8 Key CPF Changes To Singapore CPF In 2025
1. Special Account (SA) Closure for those 55 and Above
From the second half of January 2025, the SA will be closed for members aged 55 and above. funds standing will be transferred to the Retirement Account (RA), up to the prevailing full Retirement total. In case of any excess SA savings, they will be transferred to the Ordinary Account (OA).
2. Higher Enhanced Retirement Sum (ERS)
Starting from January 1, 2025, the ERS will increase to four times the basic retirement sum (BRS), reaching S$426,000 (up from the current S$308,700, which is three times the BRS).
3. CPF Contributions from Platform Workers
The CPF contributions will be deducted from the platform workers’ earnings. For those born on or after January 1, 1995, contributions from the platform workers will gradually increase to 20% by 2029, with platform operators contributing up to 17%. Platform workers born before 1995 are provided options for the increased contributions or choose to contribute only to their MediSave Account, without receiving the platform operator’s share.
4. Increased CPF Monthly Salary Ceiling
The CPF monthly salary ceiling will also increase to S$7,400 while the annual salary ceiling would remain S$102,000.
5. Higher Contribution Rates for Senior Workers
From January 1, 2025, CPF contribution rates for employees aged above 55 to 65 will also increase by 0.5 percentage points for employers and 1 percentage point for the employees.
A one-year CPF Transition Offset (equivalent to half of the 2025 increase in employer contributions) will also be given.
6. Workfare Income Supplement (WIS) Scheme Changes
The qualifying income cap for WIS will also be increased to S$3,000 (from S$2,500). Eligible workers would also benefit with workfare payments up to S$4,900 annually, relatively to the current S$4,200.
7. Enhanced Matched Retirement Savings Scheme (MRSS)
The MRSS will increase vastly from January 1, 2025.
- The matching grant cap will rise to S$2,000 per year which is currently S$600).
- The age cap of 70 will be removed which will open the scheme to approximately 800,000 more CPF members aged 55 and above.
- Tax relief for cash top-ups that attract the matching grant will also be removed (as the grant itself is a benefit).
8. Increased Silver Support Scheme Payments
Starting from January 1, 2025, quarterly Silver Support Scheme payouts will also increase by 20%. The qualifying household monthly income per person threshold will increase from S$1,800 to S$2,300.
Streamline Your CPF Submissions with SME
SME payroll software is AI powered and equipped with advanced ML algorithms. This helps in simplifying even the complex payroll periods, regardless of how large is your team, the process runs smoothly. SME payroll software solutions offers;
- Built-in CPF Calculator: No human intervention avoiding errors with automated & accurate calculations for CPF contributions to be always compliant with the latest CPF rates.
- Direct Bank GIRO and CPF Submission Features: Simple features to optimize the process as per your needs to timely submit CPF directly.
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Conclusion
CPF compliance is a statutory compliance under MoM Singapore. Contribution rates are revised every year, but 2025 came with many more changes and increases in several other factors relating to CPF. To ensure compliance, you must firstly know and understand the terms and then only you can understand what efforts are required and then set them in the right direction.
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