Here are Singapore’s statutory updates for 2025
Effective January 2025
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.
