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| CPF CHANGES FROM 1 JANUARY 2006 |
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Come 1 January 2006, there will be some CPF changes that will affect employees who are Singapore citizens and PRs as well as the self-employed. For more details on the following changes, please visit our website at www.cpf.gov.sg.
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| 1) CHANGES AFFECTING EMPLOYEES |
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• CPF CONTRIBUTION RATES FOR WORKERS AGED BETWEEN 50 AND 55
The total CPF contribution rate for workers aged between 50 and 55 will be reduced from 30% to 27%. The employer’s and employee’s contribution rates for these workers will be 9% and 18% respectively. There will be no change in the contribution rates for the other age groups.
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Employer |
Employee |
Total |
Ordinary Account |
Special Account |
Medisave Account |
| 1 Jan 2005 |
11% |
19% |
30% |
15% |
7% |
8% |
| 1 Jan 2006 |
9% |
18% |
27% |
12% |
7% |
8% |
• SALARY CEILING
The amount of Ordinary Wages that attract CPF contributions each month will be lowered from $5,000 to $4,500.
• ADDITIONAL WAGE CEILING
The Additional Wage Ceiling is the maximum amount of Additional Wages on which CPF is payable. From 1 January 2006, the formula will be as follows:
Additional Wage Ceiling = $76,500 – Total Ordinary Wages subject to CPF contributions in the year1
1This is the sum of all the monthly Ordinary Wages for which CPF is payable, up to the maximum of $54,000 (i.e. $4,500 x 12).
All employers are required to monitor and cap the contributions on Additional Wages of their employees to prevent unnecessary refunds.
• CPF CONTRIBUTION LIMIT
The maximum amount of contributions an employee may contribute for 2006 will be revised from $28,050 to $25,245. This amount includes both mandatory and voluntary contributions. If the employee’s mandatory contributions have already reached $25,245, no voluntary contributions can be made.
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| 2) CHANGES AFFECTING SELF-EMPLOYED |
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• Maximum Medisave Contributions Payable for 2006
The Medisave contributions payable for self-employed persons are based on their assessed net trade income for the year. Self-employed persons with net trade income of more than $6,000 a year are required to contribute 6% to 8% of their income depending on their age group. The maximum Medisave contributions payable for 2006 are shown in the table below:
| Period |
Age |
| Below 35 years
(6%) |
35 to below 45 years
(7%)
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45 years and above
(8%) |
| Jan – Dec 2006 |
$3,240
(6% x 12 x $4,500) |
$3,780
(7% x 12 x $4,500)
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$4,320
(8% x 12 x $4,500) |
• Tax Deduction Limit for the Self-employed
Self-employed persons currently enjoy tax relief on their mandatory and voluntary CPF contributions based on their annual net trade income. For the year 2006, the maximum tax deduction on mandatory and voluntary CPF contributions by a self-employed person will be 33% of assessable income, up to $25,245. |
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| 3) CPF e-Submission |
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| Calling all employers with 10 or fewer employees: Submit CPF via the 300 AXS Stations islandwide! |
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With AXS stations, you can submit your CPF contribution details without computers or the need to look for internet access. CPF e-Submission is now right at your doorstep with 300 AXS stations conveniently located islandwide. This is an extra convenience you enjoy as compared to manual submission. Pay with NETS or Cashcard at the AXS Stations and you don’t have to worry about late or missing cheques anymore!
It takes just a few easy steps to complete your CPF submission at AXS Stations:
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Select "Employer Contribution" |
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Log on with your 7-digit Employer Reference Number followed by your CPF Account number |
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Enter details of payment |
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Select mode of payment |
Hurry, sign up now! For further enquiries, call us at 6229 3495 / 6229 3525 or email us at Er-Con@cpf.gov.sg.
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| 4) ASK OUR CUSTOMER SERVICE OFFICER |
| Question: |
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How do I submit claims under the Government-Paid Maternity Leave Scheme? Is there a form I can fill up? |
| Answer: |
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With effect from 1 September 2005, we do not accept any more hard copy submissions.
If you are an employer, you can submit your company’s claims online at www.maternityleave.gov.sg using this form: GML2 - E-submission Application For Reimbursement On Government-Paid Maternity Leave For Employers.
However, if you are a self-employed mother, please use the form: GML3 - E-submission Application For Reimbursement On Government-Paid Maternity Leave For Self-Employed which is for the special use of self-employed persons.
There will be a transaction number issued to you upon each successful application. After you have successfully submitted your claims online, you will receive your reimbursements within three weeks from the date of submission.
For more details on Government-Paid Maternity Leave Scheme, please visit www.maternityleave.gov.sg. |
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