Key CPF Changes in 2025: What Employers and HR in Singapore Should Know"
Posted on 24 December 2024 in Business | Suki Bajaj
The Central Provident Fund (CPF) Board is rolling out significant changes in 2025 aimed to ensure the CPF system remains relevant and continues to support Singaporeans in building stronger financial foundations for retirement, housing, and healthcare.
As HR professionals in Singapore, it’s crucial to fully understand these adjustments, ensure payroll compliance, and communicate them to employees effectively.
Keep Your Payroll Compliant with the Latest CPF Updates
Get Started TodayIn this guide, we’ll talk about:
Special Account (SA) Closure for those 55 and Above
Higher Enhanced Retirement Sum (ERS)
CPF Contributions from Platform Workers
Increased CPF Monthly Salary Ceiling
Higher Contribution Rates for Senior Workers
Workfare Income Supplement (WIS) Scheme Changes
Enhanced Matched Retirement Savings Scheme (MRSS)
Increased Silver Support Scheme Payments
Here are the key CPF changes coming into effect in January 2025:
1. Special Account (SA) Closure for those 55 and Above
From the second half of January 2025, the SA will be closed for members aged 55 and above. The funds will be transferred to the Retirement Account (RA), up to the prevailing Full Retirement Sum. Excess SA savings, if any, will be transferred to the Ordinary Account (OA).
If members have existing investments under the CPF Investment Scheme (CPFIS) using their SA funds, they can retain them, with proceeds going to their RA after the SA closure.
What this means for HR: Be prepared to answer employee queries regarding the transfer of funds and the handling of existing SA investments.
2. Higher Enhanced Retirement Sum (ERS)
Starting January 1, 2025, the ERS will increase to four times the Basic Retirement Sum (BRS), reaching S$426,000 (up from the current S$308,700, which is three times the BRS).
This allows individuals to set aside more in their RA for potentially higher monthly payouts during retirement.
What this means for HR: This change impacts retirement planning discussions with employees, particularly those approaching retirement age.
3. CPF Contributions from Platform Workers
The CPF contributions will be deducted from platform worker's earnings. For those born on or after January 1, 1995, contributions from platform workers will gradually increase to 20% by 2029, with platform operators contributing up to 17%.
Platform workers born before 1995 can opt in for the increased contributions or choose to contribute only to their MediSave Account, without receiving the platform operator's share.
What this means for HR: If a company engages platform workers, HR must understand the new mandatory contribution requirements and implement the necessary payroll adjustments.
4. Increased CPF Monthly Salary Ceiling
The CPF monthly salary ceiling will increase to S$7,400 while the annual salary ceiling remains at S$102,000.
This change aims to boost members’ overall monthly earnings by factoring in higher CPF contributions from employers.
What this means for HR: This affects payroll calculations for higher-income employees. Ensure your payroll systems are updated accordingly.
5. Higher Contribution Rates for Senior Workers
From January 1, 2025, CPF contribution rates for employees aged above 55 to 65 will increase by 0.5 percentage points for employers and 1 percentage point for employees.
A one-year CPF Transition Offset (equivalent to half of the 2025 increase in employer contributions) will be provided to cushion the impact on businesses.
What this means for HR: Adjust CPF contributions for senior employees and be aware of the transitional offset available to employers.
CPF Contribution Rates For 2025
The CPF Contribution Rates Vary According to Age Bands. The Following Changes Apply to Wages Earned From 1 January 2025.
| Age of employee | CPF Contribution by Employer | CPF Contribution by Employee | Total CPF Contribution Rate |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 15.5% | 17% | 32.5% |
| Above 60 to 65 | 12% | 11.5% | 23.5% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
6. Workfare Income Supplement (WIS) Scheme Changes
The qualifying income cap for WIS will be raised to S$3,000 (from S$2,500). This is expected to benefit around half a million lower-income workers. Eligible workers can receive workfare payments up to S$4,900 annually, compared to the current S$4,200.
What this means for HR: This is especially relevant for companies employing lower-wage workers. HR should ensure they are aware of the revised eligibility criteria and potential benefits.
7. Enhanced Matched Retirement Savings Scheme (MRSS)
The MRSS will get a major boost from January 1, 2025.
- The matching grant cap will increase substantially to S$2,000 per year (from the current S$600).
- The age cap of 70 will be removed, opening the scheme to approximately 800,000 more CPF members aged 55 and above.
- Tax relief for cash top-ups that attract the matching grant will be removed (as the grant itself is a benefit). However, cash top-ups that don't attract the matching grant will still qualify for tax relief.
What this means for HR: This provides a greater incentive for older employees to top up their retirement savings. Clearly communicate the changes in tax relief conditions.
8. Increased Silver Support Scheme Payments
Starting January 1, 2025, quarterly Silver Support Scheme payouts will increase by 20%. The qualifying household monthly income per person threshold will also rise from S$1,800 to S$2,300. The quarterly payments will continue to be tiered based on HDB flat type and household monthly income per person.
What this means for HR: While not directly related to employment, HR must still be aware of these relevant changes to provide holistic support for lower-income seniors and employees who may have elderly family members relying on this scheme.
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Frequently Asked Questions About CPF Contribution Rates in Singapore (2025 MOM Guide)
The CPF contribution rate depends on the employee’s age group and citizenship status.
For employees aged 55 and below, the total CPF contribution rate remains 37% (17% from the employer and 20% from the employee).
Rates gradually reduce with age to reflect shorter accumulation periods but still ensure long-term retirement savings.
You can find the full CPF contribution table on the CPF Board’s official website or calculate automatically using the QuickHR CPF Calculator.
Starting 1 January 2025, CPF contribution rates for employees aged above 55 to 65 increased:
Above 55 to 60 years: +1% (employee), +0.5% (employer)
Above 60 to 65 years: +1% (employee), +0.5% (employer)
This change supports stronger retirement adequacy under MOM’s senior worker initiatives, with a one-year Transition Offset provided to employers.
From 2025, the CPF contribution rates are:
Above 55 to 60 years: 32.5% (17% employer + 15.5% employee)
Above 60 to 65 years: 23.5% (12% employer + 11.5% employee)
Above 65 to 70 years: 16.5% (9% employer + 7.5% employee)
Above 70 years: 12.5% (7.5% employer + 5% employee)
These rates will gradually rise in 2026 and 2027, according to the Tripartite Workgroup on Older Workers roadmap.
CPF contribution tiers are based on employee age and residency status.
There are five main tiers:
- 55 and below
- Above 55 to 60
- Above 60 to 65
- Above 65 to 70
- Above 70
Each tier determines how contributions are allocated between the Ordinary Account (OA), Special Account (SA), and MediSave Account (MA) — collectively ensuring long-term savings for housing, healthcare, and retirement.
From 1 January 2025, the CPF monthly salary ceiling increased from S$6,800 to S$7,400, while the annual salary ceiling remains S$102,000.
This means CPF contributions apply to monthly wages up to S$7,400.
The cap ensures that CPF savings grow in proportion to rising wages without exceeding fair contribution limits.
Employers are required to make CPF contributions for Singapore Citizens and Permanent Residents earning more than S$50 per month.
For employees earning S$500 and above, both employer and employee contributions apply.
For wages below S$500, only the employer contributes.
This threshold ensures that all working Singaporeans build CPF savings, regardless of income level.
The CPF interest rates for 2025 remain competitive:
Ordinary Account (OA): up to 3.5% p.a.
Special and MediSave Accounts (SMA): up to 5% p.a.
Retirement Account (RA): up to 6% p.a. for older members
These rates are set by the CPF Board, ensuring safe, steady growth of members’ savings.
Yes, you can still contribute voluntarily to CPF even if your income is below S$500.
However, mandatory employer-employee contributions start from the S$50–S$500 wage range.
Voluntary top-ups can be made to any CPF account — OA, SA, or MA — through the CPF Voluntary Contribution scheme, ideal for freelancers and part-time workers.
The CPF contribution rate will continue to increase gradually through 2026 and 2027 as part of the Senior Worker Support Package.
The goal is to help older employees build sufficient savings for retirement while maintaining affordability for employers.
These staged increases were recommended by the Tripartite Workgroup on Older Workers and are managed by the Ministry of Manpower in collaboration with the CPF Board