Increase in Central Provident Fund (CPF) rates for those 55 to 70 years old
Last updated on 28 November 2022
From 1 January 2023, CPF contribution rates for employees between 55 and 70 years of age will be adjusted upwards. The increase in the contribution rates aims to strengthen the retirement adequacy of older workers and will apply to employees earning more than S$750 per month. There will be no change to the contribution rates for those below 55 and above 70 years of age.
The table below shows the new rates of contribution.
The entire amount from the increase will be allocated to the employee’s Special Account that attracts a higher interest rate than the Ordinary and Medisave Account.
Employers need to take into account the increase in calculating CPF contributions from January 2023. To prevent errors and ensure compliance, employers can outsource HR payroll services to a payroll services provider. The CPF Board will impose penalties for errors and omissions when calculating CPF contributions.