Employers to Face Higher Medisave and Older Worker CPF Contribution Rates
01 October 2014
1. CPF Updates
Benefitting more than 250,000 local workers, from cases closed in 2013, the CPF Board (CPFB) recovered about $420 million in late, under- and non-payment of CPF contributions in 2013.
CPF Recovery in Last 3 Years
Source: CPF Website
From 1 January 2015, the CPF contribution rates for all employees will be increased to help them save more for retirement and healthcare needs.
The following will apply to wages earned from 1 January 2015:
Increase in Employer’s CPF Contribution Rates
For employees aged below 50 or above 65 years, the employer contribution rates will be increased by 1 percentage point. The increase in CPF contribution will be allocated to the Medisave Account.
For employees aged above 50 to 55 years or above 55 to 65 years, the employer contribution rates will be increased by 2 and 1.5 percentage points respectively. The increase in CPF contribution will be allocated to the Medisave and Special Accounts.
Increase in Employee’s CPF Contribution Rates
For employees aged above 50 to 55 years, the employee contribution rates will be increased by 0.5 percentage point. For those earning wages of >$500 to <$750, the contribution rates will continue to be phased-in. The increase in CPF contribution will be allocated to the Ordinary Account.
2. CDAC, SINDA & ECF Raise Monthly Contribution Rates for Working Adults Effective January 2015
From January 2015, working Chinese, Indians and Eurasians will have to donate more to the community funds. The rates have been increase to sustain their operations amid of rising costs and to fund new programmes. Mendaki has no plans to change their rates next year.
Source: StraitsTimes