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Singapore Budget 2014: Initiatives Relating to CPF<p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2014 Budget Statement in Parliament on 21 February 2014:</p><ul><li> <a href="#1">Increase in ​Medisave Contribution Rates</a></li><li> <a href="#2">Increase in CPF Contribution Rates for Older Workers</a>​</li><li> <a href="#3">Enhancement to Special Employment Credit (SEC)</a></li><li> <a href="#4">Temporary Employment Credit (TEC)</a><br></li></ul><p><br> </p><h3> <a name="1"></a><strong>Increase in Medisave Co​​ntribution Rates</strong></h3><p>To help Singaporeans to save more for healthcare needs, the Government will increase the employer contribution rates to the Medisave Account (MA) by 1 percentage point. The increase will apply to wages earned from 1 January 2015.</p><p>Medisave contribution rates will also be raised by 1 percentage point for self-employed persons with annual net trade income of $18,000 and above, to align with the increase for employees. The 1 percentage point increase will apply to income earned from 1 January 2015.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015</a><br></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in Medisave contribution rates</a> (PDF, 0.3MB)<br></p><p> <br> </p><h3> <a name="2"></a><strong>Increase in CPF Contribution Rates for Older Workers</strong></h3><p>The CPF contribution rates for workers aged above 50 years to 65 years will be increased according to the schedule shown in Table 1 below. This will be on top of the 1 percentage point <a href="#1">increase in MA contribution rates</a>.</p><p> </p><div align="center"> <strong></strong> <h4> <strong></strong><strong>Increase in CPF contribution rates for older workers from 1 January 2015​</strong></h4><h4> <strong> </strong> <br></h4><table width="100%" class="cpf-table cpf-form-table"><thead style="text-align:center;"><tr valign="middle" bgcolor="#e8e8e8"><th rowspan="2"> Employee's age (years)</th><th colspan="3" style="text-align:center;"> Increase in contribution rates (% of wages)</th></tr><tr valign="middle" bgcolor="#e8e8e8"><th style="text-align:center;">​​ Contribu​tion by employer</th><th style="text-align:center;"> Contribu​tion by employee</th><th style="text-align:center;"> T​otal</th></tr></thead><tbody><tr align="center" valign="middle"><td>​Above 50 to 55</td><td width="25%">+1</td><td width="25%">+0.5</td><td width="25%">+1.5</td></tr><tr align="center" valign="middle"><td>Above 55 to 60</td><td>+1</td><td>-</td><td>+0.5</td></tr><tr align="center" valign="middle"><td>Above 60 to 65</td><td>+0.5</td><td>-</td><td>+0.5​</td></tr></tbody></table> <strong> </strong> <br></div><p>​The increase in <strong>employer</strong> contribution rates will be allocated to the Special Account. The increase in <strong>employee </strong>contribution rates will be allocated to the Ordinary Account.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015.</a></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in CPF contribution rates for older workers</a> (PDF, 0.3MB)<br></p><p> </p><h3> <br> <a name="3"></a><strong>Enhancements to the Special Employment Credit (SEC)</strong></h3><p>The SEC will be enhanced for one year to provide employers who hire Singaporean workers aged above 50 earning up to $4,000 a month with an additional offset of up to 0.5 percent of wages.</p><p>With the enhancement, employers who hire older Singaporean workers between 1 January 2015 and 31 December 2015 will receive an SEC of up to 8.5 percent of a worker’s monthly wage.</p><p>For more information on SEC, please refer to <a href="http://www.sec.gov.sg/" target="_blank">www.sec.gov.sg</a>.</p><p> </p><h3> <br> <a name="4"></a><strong>Temporary Employment Credit (TEC)</strong></h3><p>To alleviate the rise in business costs with the increase in Medisave contribution rates, employers will receive a one-year offset of 0.5% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $5,000.</p><p>TEC payments will be made based on employees’ incomes paid in 2015. More details will be made available at a later date.</p><p> <a href="/Assets/members/Documents/Budget2014TEC.pdf" target="_blank">Frequently Asked Questions on Temporary Employment Credit (TEC)</a> (PDF, 0.1MB)<br></p><p> <br> </p><h3> <strong>Contact information</strong></h3><p>Members of the public may contact the CPF Board for more information.</p><h4>On CPF contribution rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On Medisave contribution rates for self-employed persons</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg​<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On SEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.sec.gov.sg/">www.sec.gov.sg</a></p><p> </p><h4>On TEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg </a>​<br></p>Singapore Budget 2014: Initiatives Relating to CPFTrueFalseTrue

 

 

Singapore Budget 2014: Initiatives Relating to CPF<p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2014 Budget Statement in Parliament on 21 February 2014:</p><ul><li> <a href="#1">Increase in ​Medisave Contribution Rates</a></li><li> <a href="#2">Increase in CPF Contribution Rates for Older Workers</a>​</li><li> <a href="#3">Enhancement to Special Employment Credit (SEC)</a></li><li> <a href="#4">Temporary Employment Credit (TEC)</a><br></li></ul><p><br> </p><h3> <a name="1"></a><strong>Increase in Medisave Co​​ntribution Rates</strong></h3><p>To help Singaporeans to save more for healthcare needs, the Government will increase the employer contribution rates to the Medisave Account (MA) by 1 percentage point. The increase will apply to wages earned from 1 January 2015.</p><p>Medisave contribution rates will also be raised by 1 percentage point for self-employed persons with annual net trade income of $18,000 and above, to align with the increase for employees. The 1 percentage point increase will apply to income earned from 1 January 2015.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015</a><br></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in Medisave contribution rates</a> (PDF, 0.3MB)<br></p><p> <br> </p><h3> <a name="2"></a><strong>Increase in CPF Contribution Rates for Older Workers</strong></h3><p>The CPF contribution rates for workers aged above 50 years to 65 years will be increased according to the schedule shown in Table 1 below. This will be on top of the 1 percentage point <a href="#1">increase in MA contribution rates</a>.</p><p> </p><div align="center"> <strong></strong> <h4> <strong></strong><strong>Increase in CPF contribution rates for older workers from 1 January 2015​</strong></h4><h4> <strong> </strong> <br></h4><table width="100%" class="cpf-table cpf-form-table"><thead style="text-align:center;"><tr valign="middle" bgcolor="#e8e8e8"><th rowspan="2"> Employee's age (years)</th><th colspan="3" style="text-align:center;"> Increase in contribution rates (% of wages)</th></tr><tr valign="middle" bgcolor="#e8e8e8"><th style="text-align:center;">​​ Contribu​tion by employer</th><th style="text-align:center;"> Contribu​tion by employee</th><th style="text-align:center;"> T​otal</th></tr></thead><tbody><tr align="center" valign="middle"><td>​Above 50 to 55</td><td width="25%">+1</td><td width="25%">+0.5</td><td width="25%">+1.5</td></tr><tr align="center" valign="middle"><td>Above 55 to 60</td><td>+1</td><td>-</td><td>+0.5</td></tr><tr align="center" valign="middle"><td>Above 60 to 65</td><td>+0.5</td><td>-</td><td>+0.5​</td></tr></tbody></table> <strong> </strong> <br></div><p>​The increase in <strong>employer</strong> contribution rates will be allocated to the Special Account. The increase in <strong>employee </strong>contribution rates will be allocated to the Ordinary Account.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015.</a></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in CPF contribution rates for older workers</a> (PDF, 0.3MB)<br></p><p> </p><h3> <br> <a name="3"></a><strong>Enhancements to the Special Employment Credit (SEC)</strong></h3><p>The SEC will be enhanced for one year to provide employers who hire Singaporean workers aged above 50 earning up to $4,000 a month with an additional offset of up to 0.5 percent of wages.</p><p>With the enhancement, employers who hire older Singaporean workers between 1 January 2015 and 31 December 2015 will receive an SEC of up to 8.5 percent of a worker’s monthly wage.</p><p>For more information on SEC, please refer to <a href="http://www.sec.gov.sg/" target="_blank">www.sec.gov.sg</a>.</p><p> </p><h3> <br> <a name="4"></a><strong>Temporary Employment Credit (TEC)</strong></h3><p>To alleviate the rise in business costs with the increase in Medisave contribution rates, employers will receive a one-year offset of 0.5% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $5,000.</p><p>TEC payments will be made based on employees’ incomes paid in 2015. More details will be made available at a later date.</p><p> <a href="/Assets/members/Documents/Budget2014TEC.pdf" target="_blank">Frequently Asked Questions on Temporary Employment Credit (TEC)</a> (PDF, 0.1MB)<br></p><p> <br> </p><h3> <strong>Contact information</strong></h3><p>Members of the public may contact the CPF Board for more information.</p><h4>On CPF contribution rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On Medisave contribution rates for self-employed persons</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg​<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On SEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.sec.gov.sg/">www.sec.gov.sg</a></p><p> </p><h4>On TEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg </a>​<br></p>Singapore Budget 2014: Initiatives Relating to CPF20/2/2014 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2261

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