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    More details on the increase in Employer CPF Contribution Rates and CPF Salary Ceiling*
     

    * Also known as Ordinary Wage Ceiling

     
    A) Increase in Employers’ CPF Contribution Rate

    From 1 September 2011, there is an increase of 0.5 percentage point in the employers’ CPF contribution rate. For employees who are above 35 years old and earning monthly wages of up to $1,500, the higher employer CPF contribution rate will continue to be phased in from 0% at the wage of $50 to the new full rate at the wage of $1,500. The increased contribution will be credited to the employees’ Special Account (including those above 55 years of age).

    However, the additional 0.5 percentage point does not apply to graduated employer and employee rates for first or second year Singapore Permanent Residents (SPR) and their employers.

    For more information on the new contribution and allocation rates, click here.

     
     
    B) Increase in Ordinary Wage (OW) Ceiling

    From 1 September 2011, CPF contribution is payable on ordinary wages up to a maximum of $5,000 per month. This affects all employees, including Singapore Citizens and Singapore Permanent Residents.


    Ordinary Wage Ceiling

    Before 1 September 2011

    From 1 September 2011

    $4,500

    $5,000

     
     
    C) Increase in Additional Wage (AW) Ceiling

    With the increase in the OW Ceiling from 1 September 2011, the AW Ceiling for 2011 and 2012 are revised as follows:

    No Scenarios Additional Wage Ceiling
    1. Employee whose last day of employment is before 1 Sep 2011

    $76,5001 – Total Ordinary Wages subject to CPF for 2011

    2.

    Employee whose last day of employment falls within the period from 1 Sep to 31 Dec 2011; OR

    Employee who is still in employment on 31 Dec 2011

    $79,3332 – Total Ordinary Wages subject to CPF for 2011

    3. Employee in employment from 1 Jan 2012

    $85,0003 – Total Ordinary Wages subject to CPF for 2012

    1 Equivalent to 17 months x $4,500
    2 Equivalent to (8/12 x 17 months x $4,500) + (4/12 x 17 months x $5,000)
    3 Equivalent to 17 months x $5,000

    A copy of the FAQ and examples on the computations of the revised AW Ceiling is attached.

            • FAQ
            • Examples on the Computations

    Click here to use the AW Ceiling Calculator.

     
     
    D) Increase in CPF Annual Limit

    The CPF Annual Limit (mandatory and voluntary contributions) from 2011 has been revised from $27,158 to $30,600.

    For more information on the CPF Annual Limit, click here.

     
     
     
     Last Updated on: Friday, November 28, 2014 at 5:23 PM
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