On 17 February 2012, Singapore Deputy Prime Minister and Minister for Finance Mr. Tharman Shanmugaratnam announced in his FY2012 Budget Statement that the Government will raise CPF contribution rates for older workers aged 50 to 65, to help them better prepare for retirement.
These changes will take effect on 1 September 2012. Payrollserve will update the changes while running September 2012 payroll.The changes are as follows:
- For employees aged between 50 and 55, their contribution rates will go up by 2.5 percentage points - 2 percentage points from the employer and 0.5 percentage points from the employee - to bring their total CPF contributions up to 32.5% from 30%.
- For those aged between 55 and 60, their contribution rates will go up by 2 percentage points - 1.5 percentage points from the employer and 0.5 percentage points from the employee.
- For workers aged between 60 and 65, their employer contribution rate will increase by 0.5 percentage points, with no increase in their employee contribution rate.
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