As announced by our Prime Minister Lee Hsien Loong at the May Day Rally, employee CPF contribution will be increased by 1% from the current 14.5% to 15.5%.
This increment will be done in 2 phases:
- On 1st September 2010, the first 0.5% increment will be paid into employee’s MediSave.
- The remaining 0.5% will be paid into Special Account 1st March 2011.
Looking at the increment and the increase in threshold for CPF-IS Special Account from $30,000 to $40,000 from 1st July 2010, it is not difficult to see that our government’s focus on long term retirement issues for our ageing population.
