The government has announced that the employer CPF contribution rate will be increased by 1%.
From 1st September this year, your employer will pay an additional 0.5% to your Medisave Account. If you earn more than $4,500, you will get exactly $22.50 more. This is because CPF contributions are calculated based on the cap of $4,500.
However, if you already have $37,000 in your Medisave Account, the excess will be transferred to your Special Account. See CPF Medisave Contribution Ceiling. Note that this ceiling was $33,500 in 2007.
[Added 14 May: The MCC will be raised to $39,500 effective 1 July 2010. Source: Straits Times.]
The remaining 0.5% increase will go to your Special Account starting 1st March next year.
When did you first hit the prevailing Medisave Contribution Ceiling?
3 Comments
good that gives me 1 more tablet of viagra to use for batam…
WoW, 3% hit the limit bef 25 years old. Even with the max contribution ($76500/year and at 18.84% to medisave), yearly medisave would be $4972. So hit the limit the folks must be started working at 18 years with annual salary of 76K++..
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