CPF Contribution Changes: 1 January 2025

The next phase of the CPF contribution rate increases will commence on 1 January 2025. It will see an increase in the contribution rates for employees aged 55 to 65. This increase will apply only to third-year permanent residents and beyond. First- and second-year permanent residents will remain unaffected unless CPF is calculated at a higher rate.

Furthermore, the Ordinary Wage ceiling will also increase on 1 January 2025, from $6,800 to $7,400.

A more detailed breakdown of the changes applicable from 1 January 2025 can be viewed on the CPF Board’s website. Additionally, you can read more about some of the other effects of these CPF contribution changes in our blog here.

Please rest assured that SimplePay has proactively implemented the necessary changes to ensure that payslips generated from 1 January 2025 will automatically account for the CPF contribution changes.

Should you have any questions, please reach out to our friendly Support team at support@simplepay.cloud. You can also read more about CPF on our help page here.

In addition, queries can be directed to the CPF Board directly via the channels listed on their website.

If you aren’t a SimplePay member yet, why not take advantage of our free 30-day trial account here? Signing up is a breeze and you get to experience the benefits of payroll made simple firsthand.

Take care,

Team SimplePay