Changes to CPF Contribution Rates and Wage Ceilings from 1 January 2016
||As announced in Budget 2015, the following changes will take effect from 1 January 2016:
- The CPF contribution rates for employees aged above 50 to 65 years will be increased for wages earned from 1 January 2016 to help them save more for their retirement needs.
- To keep pace with income growth over the years, the Ordinary Wage (OW) Ceiling will be increased from $5,000 to $6,000 per month.With the change in OW Ceiling, the Additional Wage Ceiling (i.e. the amount of additional wages that will attract CPF contributions in a year) will be increased to:The CPF Annual Limit from 2016 will also be increased to $37,740(i.e. $6,000 x 37% x 17 months).
This information is taken from CPF Board