This is old news but I believe it has slipped through the minds of many. In the Budget 2015 Speech, Mr Tharman announced that the CPF (Central Provident Fund) salary ceiling will be raised from the current S$5,000 to S$6,000 with effect from 1st January 2016. Time flies and we are already in December, the last month of 2015.

How Will This Impact You?

The current employee contribution is 20% and employer contribution is 17%. If you are earning S$5,000 or less, the increase of CPF salary ceiling will have no impact on you. However, if you are earning S$6,000 or more, basically you will be taking home less cash but more contribution into your CPF account.

For example

In 2015, if you are earning a monthly salary of S$6,000, you take home $5,000 (80% of S$5,000 + S$1,000 above CPF salary ceiling). In 2016, if you are earning a ......