Singapore CPF Contribution Table 2025: Find Out How Much You Need to Pay

Singapore CPF Contribution Table 2025: The Central Provident Fund (CPF) has long been a cornerstone of Singapore’s social security system, helping citizens and permanent residents save for their retirement, housing, and healthcare needs. As of January 1, 2025, there are significant changes to the CPF contribution rates and ceilings, which both employees and employers must understand to ensure compliance and financial security.

In this guide, we will cover the essential updates, how they affect employees and employers, and what these changes mean for your long-term savings. Whether you are a first-time contributor or an employer looking to stay on top of payroll, this article will give you all the information you need to navigate the changes in CPF for 2025.

Singapore CPF Contribution Table 2025

Key Information	Details
Ordinary Wage (OW) Ceiling	Increased to $7,400 (January 2025)
Annual Salary Ceiling	$102,000 remains unchanged
Contribution Rate for Employees Aged Above 55 to 65	Increased by 1.5% – 2%
Allocation for Employees Above 55 to 65	Full allocation to the Retirement Account (RA) for certain contributions
Employer Contribution Changes	Gradual adjustments for age-related groups
Official Website	CPF Official Website

The 2025 CPF contribution rate changes are designed to ensure that Singapore’s workers are better prepared for retirement and healthcare expenses. These increases will benefit employees, particularly those aged 55 to 65, by boosting their Retirement Accounts (RA) and providing more substantial savings for their later years. Employers must adjust their payroll systems to reflect these changes and comply with the updated contribution rates.

For more detailed information and to calculate your exact contribution, visit the official CPF website. Understanding these updates will help both employees and employers navigate the changes smoothly and ensure long-term financial security for all.

What Are CPF Contributions?

The CPF system is a mandatory savings program where both employees and employers contribute a portion of monthly wages. Contributions are used for three main purposes:

• Retirement Savings: Employees save for their retirement through the Retirement Account (RA).
• Healthcare: Savings are also allocated to the Medisave Account (MA) to cover healthcare expenses.
• Home Ownership: Contributions are directed into the Ordinary Account (OA) for housing needs.

CPF helps ensure that all Singaporeans are prepared for their retirement, have access to healthcare, and can own their homes. The contributions are divided into these accounts based on age and wage levels, and are required to be paid by both the employee and the employer.

CPF Contribution Rates for 2025: Changes and What You Need to Know

In 2025, significant updates will affect CPF contributions, especially for employees aged between 55 to 65. These changes are part of an effort to better support workers as they approach retirement and ensure that they have adequate savings for their healthcare needs in the later stages of life.

1. Ordinary Wage Ceiling Adjustment

The Ordinary Wage Ceiling will increase to $7,400. This means that CPF contributions will be calculated based on wages up to $7,400 monthly. If an employee’s wage exceeds this ceiling, CPF contributions will be capped at $7,400.

This adjustment ensures that employees with higher wages can still contribute to their CPF accounts, which will help build a stronger financial foundation for their retirement and healthcare needs.

2. No Change in the Annual Salary Ceiling

The Annual Salary Ceiling remains at $102,000 for CPF contributions. This is the maximum amount of salary that will be used to calculate CPF contributions for the year. If an employee earns more than $102,000 annually, their CPF contributions will be capped at that amount.

3. Increased Contribution Rates for Employees Aged Above 55 to 65

For employees aged 55 to 65, the CPF contribution rates will increase significantly. The increase ranges from 1.5% to 2%, depending on the specific age group:

• Employees aged 55 to 60 will see an increase of 1.5%.
• Employees aged 60 to 65 will see an increase of 2%.

This change ensures that older employees, who are closer to retirement, are able to accumulate more funds in their Retirement Account (RA) to support their retirement and healthcare needs.

How Will These Changes Impact Employees?

Increased Savings for Retirement

Employees aged 55 to 65 will notice a boost in their CPF contributions, which means more savings for retirement. These employees will see their Retirement Account (RA) contributions increase, helping them achieve their Full Retirement Sum (FRS) more quickly.

For employees above 55, any extra contributions will be fully allocated to the Retirement Account until the Full Retirement Sum (FRS) is met. After reaching the FRS, additional contributions will be directed to the Ordinary Account (OA) for housing or healthcare needs.

Better Healthcare Savings

The increase in CPF contributions also supports better healthcare savings. Contributions to the Medisave Account (MA) are essential for covering medical expenses, particularly as employees age. The higher contributions will ensure that Singaporeans have enough savings to meet healthcare costs during their later years.

What Do Employers Need to Know About Singapore CPF Contribution Table 2025

Employers are required to update their payroll systems to reflect the new CPF contribution rates. For employees aged 55 to 65, employers will need to adjust the contribution percentages and ensure that the increased amounts are directed into the Retirement Account (RA) and Medisave Account (MA) as needed.

Employers should also be aware of the increased Ordinary Wage Ceiling and ensure that their employees’ wages are accurately accounted for when calculating CPF contributions. This may require minor adjustments in payroll systems to ensure compliance with the updated rates.

How CPF Contributions Help Singapore’s Aging Population

One of the key reasons for these changes is Singapore’s aging population. The government has been actively adjusting policies to ensure that older workers have sufficient savings for retirement. By increasing CPF contributions for employees aged 55 to 65, the government is helping them build a stronger financial foundation to ensure that they are prepared for retirement and can meet healthcare costs as they age.

Addressing Retirement Readiness

As life expectancy increases, many workers are unable to maintain their standard of living in retirement without sufficient savings. These changes aim to help workers build a more substantial nest egg, ensuring that they can retire comfortably without financial strain.

Examples: How CPF Contributions Will Change for Different Salary Bands

For a clearer picture, let’s look at some examples of how the 2025 CPF contributions will affect employees in different salary bands.

Example 1: Employee A (Monthly Salary: $5,000, Aged 56)

For Employee A, whose salary is $5,000 and who is aged 56, the new contribution rate would be 32.5% (which includes both employee and employer contributions). This would result in a total contribution of $1,625 (compared to $1,500 previously) into the CPF accounts.

Example 2: Employee B (Monthly Salary: $8,000, Aged 60)

For Employee B, whose salary is $8,000 and who is aged 60, the new ceiling for Ordinary Wages (OW) of $7,400 applies. The total CPF contribution will be calculated based on $7,400, leading to a total contribution of $2,410 (compared to $2,150 previously).

FAQs On Singapore CPF Contribution Table 2025

1. How much will my CPF contributions increase in 2025?

Your CPF contribution will depend on your age and wage. Employees aged 55 to 65 will see an increase in their contribution rates by 1.5% to 2%.

2. What happens if I earn more than the CPF ceiling?

If your salary exceeds the Ordinary Wage Ceiling of $7,400, your contributions will be capped at that amount.

3. Will my take-home pay be affected?

Yes, the increase in CPF contributions will reduce your monthly take-home pay slightly. However, this will be compensated by a larger balance in your CPF accounts, particularly for your retirement and healthcare savings.

4. How do I know if I am affected by the new CPF contribution rates?

You will be affected by the new rates if you are aged 55 to 65 or if your wages are above the Ordinary Wage Ceiling.