12 August 2011
Employers to take note of changes to CPF contribution rate. As announced in this year’s Budget, with effect from 1 September 2011, the employer CPF contribution rate will be raised by 0.5% to 16%, bringing the total CPF contribution rate to 36%. The additional 0.5% contribution will go into the Special Account. The additional 0.5% will not apply to employers making CPF contributions at graduated rates for first and second year Singapore Permanent Residents.
In addition, from 1 September 2011, the CPF contribution ceiling on ordinary wages will be increased to $5,000 per month. This affects all employees, including Singapore Citizens and Singapore Permanent Residents. Self-employed persons to take note that the maximum amount of voluntary contributions for the year 2011 (i.e. CPF Annual Limit) has been revised to $30,600.
In line with the higher CPF ceiling, the annual contribution cap of the Supplementary Retirement Scheme (SRS) will also be increased to $12,750 for Singaporeans and Permanent Residents, and $29,750 for foreigners.