One key highlight of
Budget 2023 is the coming changes to the CPF contribution ceiling. In order to help Singaporeans save more for retirement, the salary ceiling will gradually go up from the current level of S$6,000 to S$8,000.
What does this change mean for the average Singaporean? And for that matter, what else should you know about CPF contributions in 2023?
Increase in CPF Contribution Salary Cap
Starting this year, the CPF contribution salary cap will be gradually increased to a new limit of S$8,000. To help employers and workers adjust to the new salary cap, the change will take place over four stages, as follows:
|
|
| Current |
S$6,000 |
| Sep 2023 |
S$6,300 |
| Jan 2024 |
S$6,800 |
| Jan 2025 |
S$7,400 |
| Jan 2026 |
S$8,000 |
This change is significant due to the effect it will have throughout the workforce.
Most notably, the cost of labour will increase for employers, as companies have to make a contribution to their employee’s CPF account equal to a percentage of their gross salary.
Honestly I’m okay with the CPF contribution scheme, the thing that upset me the most is during bad times we aren’t allowed or given the choice to withdraw a percentage of our past contribution, like during the pandemic when most of us lost our income.
Don’t mention about the government assistance because you don’t know when I need the extra financial assistance. Example you giving out $700 to Singaporean in June, but I need the money immediately or urgently for important matters in May.
I’m not rich and I live from hand to mouth, I lost my job because of the pandemic and now I’m badly struggling, I’m staying alone, I don’t have anyone to depend on, as of now I’m working odd job, eventhough I was an Operation Manager with an event Company before. I ever go through life without food for a few days, I fainted and was hospitalized.
Singapore is the 2nd richest nation in the world to my knowledge and to seek assistance the requirement is ridiculous. It embarrassed you more then trying to understand your situation and help, one person in particular that really stood out in my mind till today was Mr Mathew Chua from Bukit Merah SSO.
Not everyone is fortunate and during the lowest times in their life at least they can cash out some of their CPF contribution, of course they need to justify. Other then that, I have no other issues.
Thank you