CPF Contribution New Rates 2025: Check How Much The Contribution Amount Has Changed. The Central Provident Fund (CPF) of Singapore has increased its rates for 2025 to provide financial support to its eligible senior citizens. This is a mandatory social security programme launched to help citizens and make them financially secure after their retirement. To know in detail about the new changes made in CPF contributions for 2025 and the changes in amount, please look at the article below.
CPF Contribution New Rates 2025
Under CPF, it is compulsory to make contributions both by employers and employees. These contributions are made to help senior citizens cover their essential expenses and live a respectable life. The rates have been increased due to many reasons, such as inflation and the rise in the cost of living. The contributions made by employers and employees are calculated as a percentage of wages, which are divided into Ordinary Wages (OW) and Additional Wages (AW).
The honourable prime minister of Singapore launched a plan to increase the OW ceiling and made a target to increase it by SGD 8,000 by 2026. The OW ceiling has been raised to SGD 7,400 for the year 2205. There have been some new changes for 2025 to improve the conditions of senior citizens after retirement.
There are several types of CPF accounts and each has a different objective. The Ordinary Account (OA) is used for education, investments, and housing. The Special Account (SA) is designated for retirement savings. The Medicare account is used to cover healthcare expenses and insurance and a retirement account is created at age 55 by combining the savings from the Ordinary and Special Accounts for retirement purposes.
Changes in the CPF Contribution Amount
| Age | Employer’s Contribution | Employees Contribution | Total |
| 55 years and below | 17% | 20% | 37% |
| Above 55 to 60 years | 15.5% | 17% | 32.5% |
| Above 60 to 65 years | 12% | 11.5% | 23.5% |
| Above 65 to 70 years | 9% | 7.5% | 16.5% |
| Above 70 years | 7.5% | 5% | 12.5% |
Key Updates for CPF Contribution Updates for 2025
- The CPF monthly salary ceiling will be increased to $8,000 by 2026.
- Minimum CPF monthly payouts for seniors on the retirement sum scheme will be increased to $350.
- The CPF provides interest rates that are more favourable than any other bank, with a rate of 3.5 for the ordinary account and 5% for the special account holders.
- Higher contribution rates are provided to the workers aged 55 to 65.
- Increased employer contributions ensure a fair balance between immediate financial commitments and long-term savings.
Calculation of CPF Contributions
Follow the simple steps given below to calculate CPF contributions:
- Firstly, we have to calculate your total earnings. To calculate it, add your Ordinary Wages (OW) and Additional Wages (AW).
- Determine the appropriate CPF contribution rate for your age and income bracket.
- Round the contribution amounts according to CPF rounding rules.
- Minus the employee’s share from the total amount contributed to calculate the employer’s share.
- If you want more accuracy, you can use CPF calculators available online.
Benefits of CPF Contributions
- Healthcare Expenses: The MediSave Account of CPF is very beneficial for the individuals to help them cover their expenses related to medical and insurance. The main aim of this account is to reduce the burden of applicants during medical emergencies.
- Savings for Retirement: By CPF, applicants are able to save enough for their retirement. This increases their financial security and makes them live a respectable life.
- Property Ownership: The Central Provident Fund (CPF) provides payments for covering their necessary requirements and by this they can save and purchase homes or properties, or even pay housing loans. This payment makes them financially strong and provides them stability and homeownership.
Conclusion
The CPF contribution amount changes in 2025 is a crucial step towards enhancement of retired individuals in Singapore. It is compulsory to make contributions both by employers and employees under CPF. These contributions are provided to help senior citizens cover their essential expenses and live a dignified life.
FAQs
What interest rates are provided by CPF?
The CPF provides interest rates that are more favourable than any other bank, with a rate of 3.5 for the ordinary account and 5% for the special account holders.
What is the minimum CPF monthly payment raised for senior citizens on the CPF Retirement Sum Scheme?
The minimum CPF monthly payment has been raised to $350 from $250 on 1 June 2023.
Are there any changes in the CPF rates for workers below 55 years?
No, there have been no changes made in the CPF rates for workers below 55 years.