The CPF system is a key pillar of Singapore’s social security system which supports members in setting aside savings for retirement, housing and healthcare needs. These three key needs remain fundamental even as the CPF system continues to evolve to meet the changing needs of its members. To ensure that CPF system continues to remain relevant and help members build up their savings, the following changes will take place in January 2025:
(A) Closure of Special Account for members aged 55 and above
(B) Raising of Enhanced Retirement Sum
(C) Enhancements to Matched Retirement Savings Scheme
(D) Enhancements to Silver Support Scheme
(E) Enhancements to Workfare Income Supplement Scheme
(F) CPF contributions for platform workers
(G) Increase in CPF Monthly Salary Ceiling
(H) Increase in CPF contribution rates for senior workers
(A) Closure of Special Account for members aged 55 and above
· The principle behind the closure of the Special Account (SA) for members aged 55 and above is to right-site CPF savings, such that only CPF savings committed towards long-term retirement needs earn the higher long-term interest rate.
· From the second half of January 2025 onwards, the SA of CPF members aged 55 and above will be closed. Savings in the SA will be transferred to the Retirement Account (RA) up to members’ cohort Full Retirement Sum (FRS), where they will continue to earn the long-term interest rate.
· Any remaining SA savings will be transferred to their Ordinary Account (OA) and members have the flexibility to withdraw them when needed1 or transfer them to their RA, up to the current year’s Enhanced Retirement Sum (ERS). By transferring to their RA, they will continue earning the higher long-term interest rate and receive higher monthly payouts in retirement. Members who intend to top up their RA are encouraged to do so earlier to earn more through the power of compound interest.
· Members with existing CPF Investment Scheme – Special Account (CPFIS-SA) investments can continue to hold them. After their SA is closed, upon maturity or sale of these CPFIS-SA investments, the proceeds will go to their RA up to members’ cohort FRS. Any remaining proceeds will go to their OA. For ongoing payments, transition measures will be put in place after the SA has been closed to ensure that members aged 55 and above have sufficient time to make the necessary arrangements. Participating members will be notified by CPF Board of the relevant changes to the schemes and their options moving forward.
· Members will be notified through a hardcopy notification as well as an email or SMS, where applicable, after their SA is closed. To help members better understand the changes and plan ahead, prior to the closure of the SA, members can view the estimated amounts that will be transferred from their SA to their RA and/or OA in their Retirement dashboard at cpf.gov.sg/retirement by logging in via Singpass on the CPF website.
(B) Raising of Enhanced Retirement Sum
· The Enhanced Retirement Sum (ERS) is the maximum amount that CPF members aged 55 and above can choose to top up to in their Retirement Account (RA) for higher monthly payouts.
· From 1 January 2025, the ERS will be raised from three times the Basic Retirement Sum (BRS), to four times the BRS. This will allow more members to set aside a higher amount in their Retirement Account and correspondingly receive higher monthly payouts, should they wish to do so.
· The ERS in 2025 will be $426,000. For example, members turning 55 in 2025 who choose to top up to the ERS of $426,000 can receive about $3,330 of monthly payouts for life from age 65. This is an increase from about $2,530 today, based on the current ERS of $308,700, which is three times the BRS.
· CPF members aged 55 and above can use the monthly payout estimator at cpf.gov.sg/payoutestimator to calculate the payouts they can receive if they top up their RA and check the amount they can top up in their Retirement dashboard at cpf.gov.sg/retirement. Topping up earlier will enable members to earn more through the power of compound interest.
(C) Enhancements to Matched Retirement Savings Scheme
· The Matched Retirement Savings Scheme (MRSS) will continue beyond its pilot to help senior Singapore Citizens with lower retirement savings save more and receive higher monthly payouts, by matching cash top-ups made to their Retirement Account (RA).
· From 1 January 2025, the matching grant cap will be increased to $2,000 per year and the age cap will be removed. These enhancements will double the number of eligible members to about 800,000 per year, allowing them to boost their retirement savings faster. There are no changes to the other eligibility criteria (Refer to Annex A for MRSS eligibility criteria).
Enhancements | Current | From 1 January 2025 |
Increase in matching grant cap | $600 per year | $2,000 per year, with a $20,000 cap over an eligible member’s lifetime |
Removal of age cap | Age 55 to 70 | Age 55 and above |
· Tax relief for cash top-ups that attract the matching grant will be removed as the matching grant is already a significant benefit extended by the Government. Cash top-ups which do not attract the matching grant will continue to qualify for tax relief.
· Eligibility for MRSS is automatically assessed every year and eligible members will be notified through hardcopy letter or an email at the beginning of each year. Alternatively, members can check their eligibility in their Retirement dashboard at cpf.gov.sg/retirement by logging in via Singpass on the CPF website.
(D) Enhancements to Silver Support Scheme
· From 1 January 2025, the Silver Support Scheme quarterly payments will be increased by 20% to strengthen support for about 290,000 eligible senior Singaporeans who have less in retirement. The qualifying household monthly income per person threshold will also be increased from $1,800 to $2,300.
· Eligible senior Singaporeans will be notified of their eligibility via hardcopy letter in December every year, with their payments paid to them automatically every subsequent quarter.
· The quarterly payments will continue to be tiered based on HDB flat type and household monthly income per person. The quarterly payments from 1 January 2025 are as follows:
| Silver Support Payments from 1 January 2025i | |
Total CPF contributions of not more than $140,000 by age 55ii | ||
HDB Flat Typeiii | Household monthly income per person of $1,500 or less | Household monthly income per person of above $1,500 but not more than $2,300 (up from $1,800) |
1- and 2-Room | $1,080 | $540 |
3-Room | $860 | $430 |
4-Room | $650 | $325 |
5-Roomiv | $430 | $215 |
Note:
i. All Singaporeans aged 65 and above who are ComCare Long Term Assistance (LTA) recipients will receive Silver Support payments of $430 per quarter, regardless of their flat type.
ii. Self-employed persons should also have an average annual net trade income of not more than $27,600 when they were aged 45 to 54.
iii. Senior should not own, and not have a spouse who owns, a 5-room or larger HDB flat or private property or multiple properties.
iv. Senior may live in, but do not own, a 5-room HDB flat.
(E) Enhancements to Workfare Income Supplement Scheme
· With effect 1 January 2025, the qualifying income cap for the Workfare Income Supplement Scheme (WIS) will be increased from $2,500 to $3,000. This ensures that lower-income workers continue to benefit from WIS, even as their wages grow. About half a million lower-income workers will benefit from WIS.
· Workfare payments will also be increased. Eligible workers can receive up to $4,900 of workfare payments per year with effect from 2025, as compared to $4,200 per year today. Older workers and all persons with disability will continue to receive the highest tier payment.
Age | Maximum Workfare annual payment |
60 and above | $4,900 |
45 to 59 | $4,200 |
35 to 44 | $3,500 |
30 to 34 | $2,450 |
· Workers eligible for WIS will be notified via hardcopy letters and/or SMS nearer to their Workfare payment dates.
(F) CPF contributions for platform workers
· Starting from 1 January 2025, platform operators will deduct CPF contributions from platform workers (i.e. ride-hail, delivery workers) as and when they earn, and submit the platform worker’s share and the platform operator’s share (if any) of contributions to CPF Board every month. This helps platform workers to make CPF contributions in a timely and seamless manner.
· For platform workers born on or after 1 January 1995, increased CPF contributions will be mandatory. Their CPF contribution rates will increase gradually over five years to align with those of employees and employers, reaching 20% (platform worker’s share) and 17% (platform operator’s share) by 2029. These CPF contributions will be allocated to their Ordinary, Special and MediSave Accounts (OSMA) to support their housing, retirement and healthcare needs.
· Since 1 November 2024, platform workers born before 1 January 1995 can choose to opt in via cpf.gov.sg/PWOptInForm for the increased CPF contributions, to boost their housing and retirement adequacy, and also receive the platform operators’ share of CPF contributions. There is no deadline to opt in, and opt-ins cannot be reversed. Those who do not opt in will continue to contribute to their MediSave Account only, and will not receive platform operators’ share of CPF contributions. Their MediSave contributions will henceforth be deducted by platform operators and submitted to CPF Board every month.
· From 2025 to 2028, the Platform Workers CPF Transition Support (PCTS) scheme will help to ease the impact on eligible lower-income platform workers’ take-home pay. (Please refer to Annex B for PCTS eligibility criteria.) PCTS will offset 100% of the platform worker’s share of increase in CPF Ordinary and Special Account contributions in 2025. Lower-income platform workers will continue to becsupported through the Workfare Income Supplement (WIS) Scheme and will receive WIS payments monthly instead of annually from March 2025. Platform workers need not apply for PCTS and WIS as their eligibility will be assessed automatically.
(G) Increase in CPF Monthly Salary Ceiling
· As announced in Budget 2023, the CPF monthly salary ceiling2 will be increased in stages to $8,000 by 2026 so that it keeps pace with rising salaries and helps middle-income Singaporeans save more for their retirement. From 1 January 2025, the ceiling will be raised to $7,400. The CPF annual salary ceiling of $102,000 remains unchanged.
· The increase in the CPF monthly salary ceiling can help boost members’ overall total monthly earnings after factoring in the increased CPF contributions from employers.
(H) Increase in CPF contribution rates for senior workers
· In line with the recommendations of the Tripartite Workgroup on Older Workers, the CPF contribution rates for senior workers will increase as planned to strengthen their retirement adequacy. The CPF contribution rates for members aged above 55 to 65 will be raised by 0.5 percentage point for employer and 1 percentage point for employee from 1 January 2025.
Employee's age (years) | CPF Contribution Rates from 1 Jan 2025 | ||
Total | By employer | By employee | |
55 and below | 37 | 17 | 20 |
Above 55 to 60 | 32.5 | 15.5 | 17 |
Above 60 to 65 | 23.5 | 12 | 11.5 |
Above 65 to 70 | 16.5 | 9 | 7.5 |
Above 70 | 12.5 | 7.5 | 5 |
Note: Figures in brackets () denote increase in rates
· With the closure of the Special Account (SA), the increase in CPF contributions allocated to the SA will be fully allocated to the Retirement Account (RA), up to their cohort Full Retirement Sum (FRS). For members who have set aside the FRS in the RA, these contributions will be channelled to the Ordinary Account instead.
· A one-year CPF Transition Offset equivalent to half of the 2025 increase in employer CPF contributions will be provided to employers to cushion the impact on business cost. This will be provided automatically, and employers need not apply for the offset.
1Members are encouraged to update their registered bank account with CPF Board. With a one-time update of the registered bank account to PayNow NRIC-linked bank account, members can receive their CPF savings almost instantly via PayNow.
2The CPF monthly salary ceiling caps the quantum of ordinary wages that would attract CPF contributions.