Changes to CPF Contribution Rates and Wage Ceilings 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. Find out more about the new CPF contribution rates.
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:
($102,000*) – (Total OW subject to CPF for the year)
*equivalent to 17 months of the OW ceiling of $6,000
The CPF Annual Limit from 2016 will also be increased to $37,740 (i.e. $6,000 x 37% x 17 months)
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