Starting from 1 January 2024, if you are earning more than $6,800 a month, your take-home pay will become lower as a result of the increases in the CPF monthly salary ceiling.
Example, if you born in 1980 and your salary is $8,000 a month, your CPF contribution before ceiling changes is:
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Employee Contribution: = 20% x $6,300 = $1,260
|
Employer Contribution: = 17% x $6,300 = $1,071 |
After increase the ceiling, your CPF contribution will be:
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Employee Contribution: = 20% x $6,800 = $1,360
|
Employer Contribution: = 17% x $6,800 = $1,156 |
The changes will also impact the total AW ceiling subject to CPF for year 2024 to become:
= $102,000 – ($6,800 x 12)
=$20,400
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