What are the changes to the CPF salary ceilings from 1 September 2023?
The CPF monthly and annual salary ceilings have been updated periodically in the past to keep pace with rising salaries. We are updating the monthly salary ceiling now, so that the CPF system continues to remain relevant in meeting the retirement needs of the broad majority of resident employees.
The CPF monthly salary (i.e. Ordinary Wage) ceiling will be gradually raised from $6,000 to $8,000 by 2026 for all employees. The increase will take place in four steps, as shown in the Table below, to allow employers and employees to adjust to the changes.
Table: Changes in CPF salary ceilings
|
CPF Ordinary Wage ceiling
|
CPF annual salary ceiling
|
Current
|
$6,000
|
$102,000 (no change)
|
From 1 September 2023
|
$6,300 (+$300)
|
From 1 January 2024
|
$6,800 (+$500)
|
From 1 January 2025
|
$7,400 (+$600)
|
From 1 January 2026
|
$8,000 (+$600)
|
Employees who are earning above $6,000 will benefit from this change.
The annual salary ceiling, which limits the total amount of Ordinary Wages and Additional Wages that attract CPF contributions, will remain at $102,000 at this juncture. It will be reviewed periodically to ensure it continues to cover the broad majority of CPF members. The CPF Annual limit will also remain at $37,740.
