Budget 2023: CPF monthly salary ceiling to increase to S$8,000
SINGAPORE – The ceiling for salary used for monthly Central Provident Fund (CPF) contributions will be increased from S$6,000 in stages until it reaches S$8,000 by 2026, Finance Minister Lawrence Wong announced in Parliament on Tuesday (14 February).
In his Budget speech, Wong, who is also Deputy Prime Minister, said that this move is to "help middle income Singaporeans save more for their retirement by raising the CPF monthly salary ceiling".
Also read: Tin Pei Ling joins Grab Singapore as director of public affairs and policy
Also read: Singapore Budget 2023: What you need to know
Also read: Singapore scam victims lost S$660.7 million in 2022
The CPF monthly salary ceiling defines the quantum of ordinary wages that would attract CPF contributions.
Adding that the last time CPF salary ceilings were raised was in 2016, Wong said that the current move – to start in September – is to keep pace with rising salaries.
"We will face in the increases over four years starting from this year to allow employers and employees adjust to the changes," he said.
Follow us on Facebook, Instagram, TikTok and Twitter.