You may have received a letter from the CPF Board regarding changes to CPF Contribution Rates and Wage Ceilings which will come into effective on 1 January 2016.
As part of the 2015 budget measures, the Government had announced –
- 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.
- This will apply to wages earned from 1 January 2016.
- 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: