Check out the latest updates on the CPF Contribution Table 2024: Singapore CPF Limits and Latest Updates Check Here. The Singaporean Government adjust the contribution rates periodically, and employees must be aware of the new rates and the specific rules based on their age.
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CPF Contribution Table 2024
The Central Provident Fund is a compulsory saving scheme in Singapore designed to assist citizens, and permanent residents save for retirement, health and home ownership. The employer, as well as employees, contribute a portion of the employee’s salary to the scheme. There are various types of CPF accounts utilised for different purposes ordinary Account is used for education, housing and investments.
A special Account is for retirement savings, Medisave to cover healthcare expenses and insurance, and a Retirement account is formed at age 55 by merging OA and SA savings for retirement. The CPF fund can be used to service housing loans. This is why Singaporeans prefer to buy rather than rent despite high housing rates. The permanent residents have different contribution rates during the first two years of employment which we will be sharing in this article.
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Singapore CPF Limits 2024
In Singapore, the day citizens start earning, they need to invest some portions of their income into the CPF. The CPF Contribution is subject to ceilings. As of 2024, the ordinary wage ceiling is around $6,800. Thus, employees earning above these limits are terminated from the CPF. In contrast, the additional wage ceiling is evaluated annually.
For instance, if a worker earns $6,800 per month and receives a $50,000 bonus, the additional wage cost would be $20,400. This contribution ensures that contributions are capped annually. The amount you receive after retiring depends on how much you have contributed to the scheme.
CPF Contribution Latest Updates Check
The CPF contributions are divided into employee and employer contributions, and rates vary by age. For 2024, the CPF contribution is structured by age. Workers up to 55 years old have a combined contribution rate of 37%, with employers contributing 17% and employees 20%. Here are the rates effective from 1 January 2024.
| Age | Employer’s Contribution | Employees Contribution | Total |
| Up to 55 years | 17% | 20% | 37% |
| 55 to 60 years | 15% | 16% | 31% |
| 60 to 65 years | 11.5% | 10.5% | 22% |
| 65 to 70 years | 9% | 7.5% | 16.5% |
| Above 70 years | 7.5% | 5% | 12.5% |
It is important to note that the CPF contribution for the permanent resident varies from that of the citizens. PRs have unique contribution rates during their initial two years. During the first year PRs, the employer needs to contribution up to 4% to 9%, whereas the employees have to invest around 5% to 15%.
CPF Benefits In Singapore
The CPF is a Singaporean Government Scheme in which every citizen has to invest from their monthly income. Here is the list of benefits you can avail of if you are a CPF contributor.
- The CPF offers higher interest rates as compared to any other bank, which is 3.5% for the Ordinary Account and 5% for the Special Account holders. As compared to other investment programs, CPF has a much lower risk.
- You do not have to contribute alone. Your employer is legally obliged to invest a portion of your salary into your CPF, ensuring that you have sufficient funds when you decide not to work.
Individuals can withdraw funds through their Special Account as soon as they hit the minimum age requirement of 63. To draw out from Ordinary and Medisave accounts, can only be used to cover things like housing and manage medical costs, respectively.
All We Know
Employers can submit contributions through the CPOF website using SingPass or CorpPass. Payment can be made using direct debit, eNETS, Standing Instructions, Cheques or AXS Stations. All you need is the CPF PAL file, which is a .txt file that details the contribution data. The Contributions are due on the last day of the month. However, individuals have until the 14th of the following month to make the payment.
In case there are delays, you can utilise the payable dates to classify wages correctly. Upon reaching the second year, the worker contributes 7.5% to 12.5%, and the employer around 6% to 15%. After the second year, the permanent resident has to contribute the same rates as Singaporean employees.
Rohan Manjrekar is a writer and consultant in scholarships and financial aid, dedicated to simplifying college funding. His work focuses on debt reduction and maximizing educational access for students from all backgrounds.