Singapore Budget 2015: CPF salary ceiling to be raised to S$6,000 from S$5,000

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The government will raise the Central Provident Fund (CPF) salary ceiling from S$5,000 to S$6,000, said Tharman Shanmugaratnam, Deputy Prime Minister, and Minister of Finance, on Monday.

This increase will benefit at least 544,000 CPF members.

In line with the higher CPF salary ceiling, the government will raise the contribution cap within the Supplementary Retirement Scheme. This scheme offers tax incentives to encourage voluntary retirement savings to complement the CPF.

Both changes will take effect from Jan 1, 2016.

READ MORE: Extra 1% interest on first S$30,000 of CPF balances from age 55; CPF contribution rate for those aged 50-55 to be restored; CPF salary ceiling to be raised to S$6,000 from S$5,000