From 1 January 2015, the CPF contribution rates for all employees will be increased to help them save more for retirement and healthcare needs. The following will apply to wages earned from 1 January 2015:
Increase in Employer’s CPF Contribution Rates
For employees aged below 50 or above 65 years, the employer contribution rates will be increased by 1 percentage point. The increase in CPF contribution will be allocated to the Medisave Account.
For employees aged above 50 to 55 years or above 55 to 65 years, the employer contribution rates will be increased by 2 and 1.5 percentage points respectively. The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
Increase in Employee’s CPF Contribution Rates
For employees aged above 50 to 55 years, the employee contribution rates will be increased by 0.5 percentage point. For those earning wages of >$500 to <$750, the contribution rates will continue to be phased-in. The increase in CPF contribution will be allocated to the Ordinary Account.
From 2015, the CPF Annual Limit will be increased to $31,450.
The Ordinary Wage Ceiling remains unchanged.
|
Age Group
|
Before 1 Jan 2015
|
Wef 1 Jan 2015
|
|
35 and below
|
16%
|
17%
|
|
35-45
|
16%
|
17%
|
|
45-50
|
16%
|
17%
|
|
50-55
|
14%
|
16%
|
|
55-60
|
10.5%
|
12%
|
|
60-65
|
7%
|
8.5%
|
|
Above 65
|
6.5%
|
7.5%
|
Posts
CW8888 : Thanks for the information. Something new to me ;-)
ReplyDeleteAre you self employed?
DeleteNope!
DeleteYou are too young to realize that older human assets are effectively paid less. :-)
Delete