Changes to CPF Contribution Rates from January 2015

Recieved the fol­low­ing sum­mary from CPF Board today on Singa­pore Budget 2014 — Ini­ti­at­ives Related to CPF.

For more details, please refer to resources provided by CPF Board at the end of the art­icle.

 

Changes to CPF Con­tri­bu­tion Rates

Employ­er con­tri­bu­tion rates to the Medis­ave Account (MA) will be increased for all work­ers to help them save more for health­care needs. Work­ers aged above 50 to 65 will see an addi­tion­al increase in the employ­er con­tri­bu­tion rates to the Spe­cial Account (SA) to help them save more for retire­ment.

Employ­ee con­tri­bu­tion rates to the Ordin­ary Account (OA) will increase for work­ers aged above 50 to 55.

The table below shows these increases in CPF con­tri­bu­tion rates for Singa­pore Cit­izens (SCs), and for Singa­pore Per­man­ent Res­id­ents (SPRs) from their 3rd year of obtain­ing SPR status.

Increases in CPF con­tri­bu­tion rates for SCs and SPRs from Janu­ary 2015

Employ­ee’s age (years) Per­cent­age point increase in CPF con­tri­bu­tion rates (for wages ≥ $750) Alloc­a­tion of increase
Con­tri­bu­tion by employ­er Con­tri­bu­tion by employ­ee Total OA SA MA
50 and below +1% - +1% - - +1%
Above 50 — 55 +2% +0.5% +2.5% +0.5% +1% +1%
Above 55 — 60 +1.5% - +1.5% - +0.5% +1%
Above 60 — 65 +1.5% - +1.5% - +0.5% +1%
Above 65 +1% - +1% - - +1%

Medis­ave con­tri­bu­tion rates for Self-Employed Per­sons (SEPs) with annu­al net trade income of $18,000 and above will be raised by 1%.

The rates in the table below are applic­able to SEPs for annu­al net trade income from 2015.

Con­tri­bu­tion rates applic­able to SEPs from 2015

Annu­al net trade income (from 2015) Age as at 1 Janu­ary of work year
Below 35 years 35 to below 45 years 45 to below 50 years 50 years and above
Above $6,000 to $12,000 4% 4.5% 5% 5.25%
Above $12,000 to $18,000 Phased in* from 4% to 8% Phased in* from 4.5% to 9% Phased in* from 5% to 10% Phased in* from 5.25% to 10.5%
Above $18,000 8%(Maximum $4,800) 9%(Maximum $5,400) 10%(Maximum $6,000) 10.5%(Maximum $6,300)

*Please refer to the CPF web­site for the phased-in rates.
Spe­cial Employ­ment Cred­it and Tem­por­ary Employ­ment Cred­it

To help employ­ers bet­ter cope with the con­tri­bu­tion rate increases in 2015, the Spe­cial Employ­ment Cred­it (SEC) will be enhanced. Employ­ers will in addi­tion receive a new Tem­por­ary Employ­ment Cred­it (TEC).

SEC enhance­ment in 2015
Employ­ers hir­ing Singa­por­ean work­ers aged above 50 earn­ing up to $4,000 a month in 2015 will receive an addi­tion­al off­set of up to 0.5% of wages, mak­ing it a total off­set of up to 8.5%. The cur­rent off­set is up to 8%.
TEC pay­ment in 2015
In 2015, employ­ers will receive a one-year off­set of 0.5% of wages for Singa­por­ean and SPR work­ers, up to the CPF salary ceil­ing of $5,000 per month, based on employ­ees’ incomes paid in 2015. This will help employ­ers cope with the increased Medis­ave con­tri­bu­tion rates.

Find out more:

Singa­pore Budget 2014: Ini­ti­at­ives relat­ing to CPF(more details such as FAQs and con­tact inform­a­tion are avail­able)
Singa­pore Budget 2014: All ini­ti­at­ives
Singa­pore Budget 2014: Full Budget Speech

 

Source: CPF Mem­bers Email Update from CPF Board, 22 Feb 2014

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