Can you really say that you know where your money goes every month? If you don’t understand what’s happening to that precious chunk of your salary that goes into your CPF accounts through CPF contributions, never to be seen again, then the answer is no. But not to worry, understanding how CPF works is tedious, but it isn’t rocket science..
SINGAPORE - For over a decade, the elderly man duped the Central Provident Fund (CPF) Board into thinking that he and his wife were employees of a company earning $1,000 a month so they would get payouts and CPF contributions. This led CPF Board to disburse more than $86,000 to Tan Kah Poh, 71, his wife, Toh Poh Choo, 70,.
SINGAPORE - For over a decade, the elderly man duped the Central Provident Fund (CPF) Board into thinking that he and his wife were employees of a company earning $1,000 a month so they would get payouts and CPF contributions.
. Read more at straitstimes.com.
Singapore News - For over a decade, the elderly man duped the Central Provident Fund (CPF) Board into thinking that he and his wife were employees of a company earning $1,000 a month so they would get payouts and CPF contributions. This led CPF Board to disburse more than $86,000 to Tan Kah. Read more at www.tnp.sg
12.5 per cent
Note on CPF contributions for 55 & above: Over the next 10 years, CPF contributions for older workers will be gradually adjusted upwards to meet the full contribution rate of 37per cent (employee + employer). The CPF contribution rates will only drop after age 60.
By the way, if you’re self-employed, none of the above applies to you. Any CPF contributions are voluntary EXCEPT Medisave contributions, which you’ll be prompted to pay after filing your taxes each year.
Example
Let’s say you are a 30-year-old earning a monthly salary of $5,000.
Every month, your employee’s contribution to CPF will be 20 per cent of your wage. That means that $1,000 will be deducted from your salary every month and deposited into your CPF accounts.