Here are Singapore’s statutory updates for 2025
Effective January 2025
Revised Employment Pass (EP) Qualifying Salaries
The Ministry of Manpower (MOM) has announced updated salary requirements for Employment Pass applications and renewals:
- General sectors: Minimum monthly salary increases to SGD 5,600 (up from SGD 5,000) and scales with age, reaching SGD 10,700 for applicants aged 45 and above.
- Financial services sector: Minimum monthly salary rises to SGD 6,200 (up from SGD 5,500), scaling to SGD 11,800 for those aged 45 and above.
These changes apply to new EP applications from January 2025 and renewals for EPs expiring from January 2026.
Source: MOM
New Parental Leave Scheme and Mandatory GPPL
Starting 1 April 2025, the current shared parental leave scheme will be replaced with a new arrangement offering 10 weeks of paid parental leave shared between both parents. The scheme will roll out in two phases: six weeks of shared leave from 1 April 2025, increasing to 10 weeks from 1 April 2026. This entitlement is in addition to existing GPML and Government-Paid Paternity Leave (GPPL) benefits.
Additionally, effective 1 April 2025, the additional two weeks of voluntary GPPL will become mandatory. Eligible working fathers of Singapore citizen children born on or after this date will be entitled to a total of four weeks of GPPL.
Increase in CPF Ordinary Wage Ceiling
The CPF Ordinary Wage (OW) ceiling will increase to $7,400 in 2025 as part of a phased increase to $8,000 by 2026. This ceiling determines the maximum monthly Ordinary Wages eligible for CPF contributions.
The CPF annual salary ceiling remains at $102,000, with no changes to the Additional Wage ceiling or CPF Annual Limit of $37,740.
Source: CPF
Increase in CPF Contribution Rates for Senior Workers
The Central Provident Fund Board (CPFB) of Singapore has announced an increase in CPF contribution rates effective 1 January 2025, specifically for Singapore Citizens and Singapore Permanent Residents (3rd year onwards) aged 55 to 70 with monthly wages exceeding $750. Key changes include:
- CPF Contribution Rates:
- For employees aged 55 and below, the total contribution rate remains at 37% (employer: 17%, employee: 20%).
- For employees aged above 55 to 60, the rate will increase from 31% to 32.5% (employer: 15.5%, employee: 17%).
- For employees aged above 60 to 65, the rate will increase from 22% to 23.5% (employer: 12%, employee: 11.5%).
- For employees aged above 65 to 70, the rate remains at 16.5% (employer: 9%, employee: 7.5%).
- For employees aged above 70, the rate remains at 12.5% (employer: 7.5%, employee: 5%).
- Phased Contribution for Lower Wages: Phased contribution rates for employees earning between $500 and $750 per month will continue.
- Allocation of Contributions: With the closure of the Special Account (SA), increased contributions will now be fully allocated to the Retirement Account (RA) up to the Full Retirement Sum (FRS). If the FRS has already been met, contributions will be directed to the Ordinary Account.
These adjustments are intended to strengthen retirement savings for senior workers.
Source: CPF
