Source: CNA
SINGAPORE: The Singapore government will raise employer CPF contributions and CPF salary ceiling.
In his Budget speech on Friday, Finance Minister Tharman Shanmugaratnam said the employer contribution rate will go up by another 0.5 percentage points to 16 per cent, which will restore the total contribution rate to 36 per cent.
The additional 0.5 per cent will go into the Special Account.
Mr Tharman said the CPF salary ceiling will also be revised from S$4,500 to S$5,000 per month to keep pace with income growth in recent years.
The changes will take effect in September this year.
In line with the higher CPF salary ceiling, the government will also raise the contribution cap within the Supplementary Retirement Scheme (SRS).
The scheme offers tax incentives to encourage voluntary retirement savings to complement the CPF.
Self-employed persons (SEP) will also get more help to increase their savings under the CPF scheme.
The government will grant tax deductions, starting next year, to eligible companies that make voluntary contributions, of up to S$1,500 per SEP per year, to the Medisave accounts of their SEP partners.
SEPs will also be exempted from paying tax on these contributions.
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SINGAPORE: The Singapore government will raise employer CPF contributions and CPF salary ceiling.
In his Budget speech on Friday, Finance Minister Tharman Shanmugaratnam said the employer contribution rate will go up by another 0.5 percentage points to 16 per cent, which will restore the total contribution rate to 36 per cent.
The additional 0.5 per cent will go into the Special Account.
Mr Tharman said the CPF salary ceiling will also be revised from S$4,500 to S$5,000 per month to keep pace with income growth in recent years.
The changes will take effect in September this year.
In line with the higher CPF salary ceiling, the government will also raise the contribution cap within the Supplementary Retirement Scheme (SRS).
The scheme offers tax incentives to encourage voluntary retirement savings to complement the CPF.
Self-employed persons (SEP) will also get more help to increase their savings under the CPF scheme.
The government will grant tax deductions, starting next year, to eligible companies that make voluntary contributions, of up to S$1,500 per SEP per year, to the Medisave accounts of their SEP partners.
SEPs will also be exempted from paying tax on these contributions.
