News and Insights

Singapore – Increase in CPF Contribution Rates Announced - activpayroll

Written by activpayroll | Jun 13, 2021 11:00:00 PM

From 1 January 2022, 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.

For employees earning monthly wages of more than $750:

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 employees earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.

Please note, there are no changes to the graduated contribution rates for first and second year Singapore Permanent Residents (SPRs). Similarly, there are no changes to the Ordinary Wage (OW) Ceiling and Additional Wage Ceiling.

Contribution rates for Singapore Citizens and SPRs (from third year and onwards) from 1 January 2022:

 

For more information on the Singapore tax and payroll landscape, browse activpayroll’s Global Insight Guide to Singapore.