In 2025, Singapore’s Central Provident Fund (CPF) framework will see a series of important updates that affect employees, employers, and self-employed individuals. These changes are part of the government’s broader goal to enhance retirement adequacy, especially for senior workers, while keeping pace with rising incomes and cost-of-living pressures.
Understanding the updated CPF contribution rates and wage ceilings is crucial for financial planning, compliance, and long-term retirement security.
Table of Contents
Summary
Here is a simplified breakdown of the CPF contribution rates for 2025 by age group:
| Age Group | Total CPF Contribution | Employer Share | Employee Share | Remarks |
|---|---|---|---|---|
| Below 55 | 37.0% | 17.0% | 20.0% | No change |
| 55 – 60 | 32.5% | 14.0% | 18.5% | Continues to support savings |
| 60 – 65 | 23.5% | 12.0% | 11.5% | Gradual tapering begins |
| 65 – 70 | 16.5% | 9.0% | 7.5% | Reduced contributions |
| Above 70 | 12.5% | 7.5% | 5.0% | Lowest contribution tier |
Increased Wage Ceiling for CPF Contributions
To ensure that CPF remains aligned with wage growth and inflation, the Ordinary Wage (OW) ceiling will rise from S$6,800 to S$7,400 per month starting in 2025.
This change means that a greater share of employees’ monthly earnings will now be subject to CPF contributions, which enhances their long-term savings potential.
- Ordinary Wage Ceiling (Monthly): S$7,400
- Additional Wage Ceiling (Annual): S$102,000 – minus total OW for the year
The Additional Wage (AW) ceiling remains unchanged, but with the OW ceiling increasing, the net annual limit for AW contributions will be adjusted accordingly.
These rates are applicable for employees earning more than S$750 per month.
Contribution Allocation by Account
CPF contributions are distributed across three main accounts:
- Ordinary Account (OA) – used for housing, insurance, and education
- Special Account (SA) – reserved for retirement savings
- MediSave Account (MA) – covers healthcare expenses
The allocation percentages vary by age group, with older workers seeing higher allocations to MediSave and Special Accounts to prioritize health and retirement needs.
Example: CPF Contribution for a 60-Year-Old Employee
Let’s consider a 60-year-old employee earning S$8,000 per month:
- Applicable OW ceiling: S$7,400
- Contribution rate: 23.5% of S$7,400 = S$1,739
- Employer share (12%): S$888
- Employee share (11.5%): S$851
These amounts will be divided between OA, SA, and MA based on CPF allocation formulas for their age group. This setup ensures that contributions continue to support immediate and long-term needs.
Support for Lower-Income Workers
The CPF system provides flexibility for workers earning between S$500 and S$750 per month:
- Employees in this range contribute partial CPF amounts, easing the financial burden.
- Employers must still contribute their full share, which strengthens retirement savings for lower-income earners.
- Workers earning S$500 or less are not required to contribute, though employers still do.
This phased contribution helps safeguard take-home pay while ensuring that some savings continue to accumulate.
Self-Employed and Older Workers
For self-employed individuals and older workers, CPF participation is mostly voluntary beyond MediSave contributions. However, the government actively encourages voluntary top-ups through support schemes:
Matched Retirement Savings Scheme (MRSS)
- Eligible low-balance CPF members aged 55 to 70 can receive dollar-for-dollar matching grants up to S$600 annually for voluntary Retirement Account top-ups.
- This initiative is designed to boost retirement adequacy among those who may have limited savings from formal employment.
Other Schemes
- Self-employed persons can voluntarily contribute to OA and SA to build up their savings.
- The government offers tax relief for CPF top-ups, making it an attractive option for retirement planning.
Conclusion
The CPF Contribution Table 2025 reflects Singapore’s commitment to strengthening retirement security through updated wage ceilings and age-based rates. Employers must ensure accurate contributions, while older and self-employed individuals are encouraged to make voluntary top-ups. Staying informed helps all CPF members make the most of this robust savings system.
FAQs
1. What is the CPF contribution rate for employees under 55 in 2025?
A = It remains at 37%, with 20% from the employee and 17% from the employer.
2. How much of my salary is subject to CPF contributions in 2025?
A = Up to S$7,400 per month is subject to CPF contributions under the new Ordinary Wage ceiling.
3. Are self-employed persons required to contribute to CPF?
A = They are required to contribute only to MediSave but can make voluntary top-ups to OA and SA.
4. What is the MRSS scheme?
A = The Matched Retirement Savings Scheme offers government matching grants to help low-balance members grow their retirement funds.
