CPF Salary Ceiling increased coming 1st Sept 2023 [Singapore]

As most of us tuning in to Singapore Budget 2023 on Valentine's day know, our dear Minister Lawrence Wong delivered one of the key messages on retirement planning for middle income Singaporeans was to raise the CPF monthly Salary Ceilings from the $6,000 (as of March 2023) to $8,000 (by Jan 2026).

This change was pivoted in helping middle income Singaporeans save more for their retirement and keeping up with the rising salaries in the country.

The transition period will take place over 4 years starting from Sep 2023 to Jan 2026 with: -

To the individual employee, this transition serves to let them slowly adjust to increased in CPF contribution.

For the employers, this means increased contributions to their workers.

In all, this looks to benefit the individuals in the longer time horizon even as individuals look to get lesser take home pay presently.

Below is a simple calculator for the calculation of your "take-home pay".

*Note: The calculator is free to use and may not be reflective of your own pay. Please always check with CPF website for more information.