Changes to CPF Contribution Wage Ceiling on 1 Jan 2024

As part of the Budget 2023 announcement, the second of the four-stage CPF monthly wage ceiling increase will be taking place on 1 January 2024.

This means that the CPF monthly wage ceiling will be raised to $6,800, a $500 increase from the current ceiling of $6,300.

Additionally, senior employees in the age group of >55 - 70 will also see an increase in CPF contribution rates from 1 January 2024.

Here’s an example of a citizen or PR Year 3 onwards drawing a monthly salary of $8,000:

For more details, please refer to the CPF contributions rates tables.

With the change in wage ceiling, both the employer and employee would see an increase in their CPF contributions, and the employee would receive a lower take-home pay.

Employees who are drawing a monthly salary below the wage ceiling will not be affected.

If you are overwhelmed with all the changes and calculations, fret not!

Little Red Robin partners with various could-based payroll solutions to help our clients manage their monthly payroll. The solutions are compliant with the MOM guidelines, saves much time and reduces errors from manual calculations.  

Get in touch with us to find out more about the payroll solutions we offer.