Updated on February 13, 2024
Welcome to this article, where you’ll discover all about the CPF Contribution Rate for 2024, covering important aspects such as Interest Rate, Payout, Minimum Sum, and Maximum Contribution. The Central Provident Fund (CPF) stands as Singapore’s federal social security fund, providing various benefits. It’s a government scheme requiring contributions from both employers and employees, aimed at supporting retirement, home ownership, and healthcare needs. Contributions are influenced by factors like age, wages, and status, with specific accounts opened under the CPF Board, including top-up Government grants. For detailed insights into the CPF Contribution Rate for 2024, along with its payouts and more, continue reading.
CPF Contribution Rate 2024
In 2024, the Central Provident Fund (CPF) has implemented significant adjustments to its contribution rates, reflecting the life stage of dependents. In the first quarter of the year, the CPF’s interest rate has increased by 4.08% per annum, leading to higher accumulations over time.
The CPF contribution rate holds significant importance in the retirement planning of both employers and employees. With the recent interest rate increases, CPF accounts undergo crucial adjustments to optimize retirement goals. This includes raising the CPF Special and MediSave accounts, with the Ordinary CPF raised to $6,800. Additionally, the Full CPF retirement sum has increased by $205,800, while CPF Basic Healthcare has seen an increase of $71,500.
CPF Interest Rate 2024
Starting January 2024, the Central Provident Fund (CPF) has undergone adjustments with higher rates, aiming to address the rising cost of living and inflation. Notably, the CPF monthly salary has been raised from $6,300 to $6,800, representing the maximum portion of an individual’s monthly income. Contributors are now required to contribute 20% of their salary to the CPF.
The CPF Contribution Rate for recipients aged 55 to 70 years has been increased as follows:
- Contributors aged 55 and above are required to contribute 37% of their total wages, with 17% contributed by the employer and 20% by employees.
- Contributors aged above 55 to 60 years must contribute 31% of their total wages, with 15% contributed by the employer and 16% by employees.
- For recipients aged above 70 years who are still working, the contribution rate is set at 12.5% of their total wages, with 7.5% contributed by the employer and 5% by employees.
As of January 2024, the Basic Healthcare Sum (BHS) for individuals under 65 years old has been raised from $68,500 to $71,500, representing an increase of $3,000. This adjustment applies to recipients under 65 years old, with the BHS being adjusted annually. However, for individuals aged 65 and above, the BHS remains unchanged at $71,500.
Contribution Payout 2024
In 2024, the CPF Contribution Rate payout is determined by the age of CPF members. Members below the age of 55 will receive an additional 1% increase on their CPF balance up to $60,000. For CPF members aged 55 or over, there will be an additional 2% interest on the first $30,000 of combined balance and 1% interest on the next $30,000.
The HDB payout remains consistent at 2.6%, regardless of age. Members below the age of 65 will receive $71,500, while members aged 65 years or above will also receive $71,500. These rates are quoted on an annual basis, and the Basic Healthcare Sum (BHS) payout is adjusted annually by the Federal Ministry of Health.
CPF Minimum Sum
In 2024, the Central Provident Fund (CPF) will set the basic minimum retirement sum at $102,900, the full retirement sum at $205,800, and the minimum enhanced retirement sum at $308,700. These figures represent federal amounts that are adjusted annually.
The 2024 CPF Rate has been adjusted to account for rising inflation and increased life expectancy. Set by the Federal Government, the new CPF minimum sum aims to enhance the standard of living for retirees. Eligible members can expect to receive a sufficient sum to meet their needs and maintain a comfortable lifestyle.
CPF Max Contribution 2024
Starting from January 2024, the CPF maximum contribution rate aligns with the new federal threshold. Members are mandated to contribute their monthly ordinary wage, up to 6,800 SGD/month. The total annual ceiling for contributions is set at 102,000 SGD.
The Central Provident Fund Board has steadily raised the monthly threshold, while the provided amount has remained unchanged. The remainder of the CPF Contribution Rate will be calculated based on the revised income threshold, which includes a monthly ordinary wage ceiling of 6,800 SGD.