During budget 2023, Deputy Prime Minister Lawrence Wong announced that the CPF monthly ceiling will be raised from the current S$6,000 to S$8,000 by 2026.
This will mean that for salaries up to S$8,000, there will be CPF contributions from both the employee and employer. Currently, this CPF monthly ceiling is set at S$6,000. This means that currently CPF contributions are not made on the salary portion above S$6,000.
The change will result in both an increase in cost to companies with employees earning above S$6,000 as well as a decrease in take-home pay for employees of the same as they will have to make additional CPF contributions as well.
Here are the stages of change:
From September 2023, the CPF monthly salary ceiling will be raised to S$6,300.
In January 2024, it will go up to S$6,800.
In January 2025, it will go up to S$7,400
In January 2026, it will go up to S$8,000
There is however no change to the CPF annual salary ceiling. It will remain at S$102,000. The CPF annual ceiling is the maximum amount of CPF contributions payable for all wages received in one year. The calculation is based on both ordinary and additional wages.