CPF contribution to be raised by 1% this year

For those who are servicing their housing loan, you will be disappointed as the 1% is not going to the Ordinary Account (OA).

The employer's contribution to the CPF, a national pension fund, will go up by one per cent to 15.5%. This will bring the overall contribution rate to 35.5%. 7 years since the CPF was cut during the SARS crisis and after weathering one of the worst global downturns, workers can now look forward to more savings for their retirement.

The government has decided to increase the CPF contribution by employers this year by 1% & the restoration will be done in two steps. 0.5% from September, paid into the Medisave Account and another 0.5% from March next year, paid into the Special Account. No top ups going to the Ordinary Account as it's deemed enough to meet current housing needs.