What are the changes to the CPF contribution rates for senior workers that will take effect from 1 January 2024?
To strengthen senior workers’ retirement adequacy, the Tripartite Workgroup on Older Workers had recommended in 2019 that CPF contribution rates for senior workers aged above 55 to 70 years be raised gradually to help senior workers save more for retirement.
The first two steps of increases took effect on 1 January 2022 and 1 January 2023. The Government will continue to raise the senior worker contribution rates in 2024 with a long-term target to have the full increase rolled out by 2030.
The changes to the CPF contribution rates from 1 January 2024 are shown below:
For employees earning monthly wages exceeding $750
Employee's age (years)
|
|
CPF Contribution Rates from 1 January 2024 |
Current Total
(% of wage)
|
Total
(% of wage)
|
By employer
(% of wage)
|
By employee
(% of wage)
|
| 55 and below |
37 |
37 |
17 |
20 |
| Above 55 to 60 |
29.5 |
31
(+1.5)
|
15
(+0.5)
|
16
(+1)
|
| Above 60 to 65 |
20.5 |
22
(+1.5)
|
11.5
(+0.5)
|
10.5
(+1)
|
| Above 65 to 70 |
15.5 |
16.5
(+1)
|
9
(+0.5)
|
7.5
(+0.5)
|
| Above 70 |
12.5 |
12.5 |
7.5 |
5 |
(a) The increase in the CPF contribution rates will be fully allocated to the Special Account to help senior workers save more for retirement.
(b) For those earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.
(c) There were no changes to the graduated contribution rates for first and second year Singapore Permanent Residents.
