Announcement Changes Related to CPF During The FY2023 Budget Statement
Greetings from i-Admin.
During the FY2023 Budget Statement in Parliament on 14 February 2023, there are announced changes related to CPF as per below details:
1. Increase in the CPF monthly salary ceiling
The CPF monthly salary ceiling sets the maximum amount of CPF contributions payable for Ordinary Wages and is currently set at $6,000. To keep pace with rising salaries, the monthly salary ceiling will be raised from $6,000 to $8,000 by 2026. The increase will take place in four steps to allow employers and employees to adjust to the changes.
The CPF annual salary ceiling sets the maximum amount of CPF contributions payable for all salaries received in the year, inclusive of both Ordinary Wages and Additional Wages. There will be no change to the current CPF annual salary ceiling of $102,000.
Please refer to the table below for the CPF monthly and annual salary ceilings from 2023 to 2026.
For more information please visit this link: https://www.cpf.gov.sg/employer/faq/employer-obligations/what-payments-attract-cpf-contributions/what-are-the-changes-to-the-cpf-salary-ceilings-from-1-sep-2023
2. Increase in CPF contribution rates for senior workers and CPF Transition Offset
The employer and employee CPF contribution rates for employees aged above 55 to 70 will be raised by up to 1 percentage point each from 1 January 2024.
The changes to the CPF contribution rates from 1 January 2024 are shown below:
For employees earning monthly wages > $750
For more information please visit this link: https://www.cpf.gov.sg/employer/faq/employer-obligations/how-much-cpf-contributions-to-pay/what-are-the-changes-to-rates-for-senior-workers-from-1-jan-2024