Budget 2024 – Employment Matters

23/02/2024

* CPF Contribution Rates will increase by 1.5 percentage points for those aged 55 to 65.

*From 2025 onwards, the government will raise the maximum amount members can put into their CPF RA to receive higher CPF payouts.

* The government’s CPF Transition Offset for employers will also be extended by another year to cover half of the increase in employer contributions for 2025.

* The Enhanced Retirement Sum (ERS) will also be raised from 2025. This refers to the maximum amount that members can put into their CPF RAs. Currently, the ERS is three times more than the Basic Retirement Sum (BRS).

* From 2025 onwards, the ERS will be increased to 4 times the BRS instead – increasing to a total of S$426,000.

* From 2025 onwards, the government will be closing the SA for those aged 55 and above.

* These savings will be transferred to the RA up to the Full Retirement Sum, where they will continue to earn the long-term interest rate.

* The remaining SA savings will be transferred to the OA, but members can voluntarily transfer their OA savings to the RA anytime, up to the Enhanced Retirement Sum to earn higher interest and receive higher retirement payouts.

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