Question 1

What are the CPF contribution rates for employees under 55 in 2024?

Accepted Answer

For employees aged 55 and below earning monthly wages above S$750, the Central Provident Fund (CPF) contribution rates for 2024 are as follows:

Standard Rates (for Singapore Citizens and 3rd year+ PRs):

Component  Rate

Employee contribution  20% of Ordinary Wages (OW) 
 Employer contribution  17% of Ordinary Wages (OW) 
 Total contribution  37% of Ordinary Wages (OW)

Key details:

The Ordinary Wage (OW) ceiling is S$6,800 per month (increased from S$6,300 effective 1 January 2024). This

Question 2

How are CPF contributions allocated to OA, SA, and MA for members under 55?

Accepted Answer

When CPF contributions are made, the funds are distributed across three accounts, each serving a different purpose. For members aged 35 and below, the allocation rates are:

Account  Allocation (% of total wages)

Ordinary Account (OA)  23% 
 Special Account (SA)  6% 
 MediSave Account (MA)  8% 
 Total  37%

The three CPF accounts explained:

Ordinary Account (OA): The most flexible account. Can be used for housing (HDB purchase, mortgage payments), education (approved institutions), insura

Question 3

How does a CPF cash top-up to the Special Account provide tax relief?

Accepted Answer

Making a voluntary cash topup to your CPF Special Account (SA) or Retirement Account (RA, if you are 55 and above) is one of the most effective ways to reduce your income tax in Singapore. This falls under the Retirement Sum ToppingUp (RSTU) scheme.

Tax relief amounts:

Up to S$8,000 tax relief for cash topups to your own SA or RA.
 Up to S$8,000 additional tax relief for cash topups to your family members' SA or RA (spouse, parents, parentsinlaw, grandparents, grandparentsinlaw, siblings, or

Question 4

What are the MediSave contribution requirements for self-employed persons in Singapore?

Accepted Answer

If you are selfemployed in Singapore and earning a net trade income (NTI) of more than S$6,000 per year, you are required by law to contribute to your MediSave Account (MA). This is compulsory.

Compulsory MediSave contribution rates for selfemployed persons:

Age Group  Contribution Rate (on NTI)

Below 35  8% 
 35 to below 45  9% 
 45 to below 50  10% 
 50 and above  10.5%

Key details:

Contributions are based on your Net Trade Income (NTI), which is your gross trade income minus allowab

Categories

CPF

What are the CPF contribution rates for employees under 55 in 2024?

How are CPF contributions allocated to OA, SA, and MA for members under 55?

How does a CPF cash top-up to the Special Account provide tax relief?

What are the MediSave contribution requirements for self-employed persons in Singapore?