CPF contribution rate up by 1%

Singapore government will be increasing employer's CPF contribution rate from 14.5% to 15.5%, bringing the total CPF contributions to 35.5%.

Total CPF contribution rate is expected to hit maximum of 36% if economy continues to perform in the next one or two years.

0.5% increase will go to Medisave Account while the other 0.5% will be made into Special Account to provide for Singaporeans medical needs and retirement.

Prime Miniser Lee Hisen Loong mention on May Day Rally 'Healthcare costs are rising over time, and we are living longer. Many of us will be old for longer, and our medical costs will go up, our expenses will rise and we need to provide not just for eldercare but for long term disability. These are all heavy burdens.'