CPF Rates 2022 – What You Need to Know

Business owners, HR personnel, and staff who manages payroll in Singapore needs to calculate CPF using the new 2022 CPF rates. This is to ensure your company calculates the correct employer and employee CPF contribution so that you avoid any penalties fees that may be levied by CPF. And CPF Board is very strict towards late payment, even if it’s an honest mistake made during the calculations. This is rightly so as their priority is to protect the interest of employees in Singapore. So the onus is on the company to check and double check that every calculations is correct.

Who are Affected?

Before we go into the changes, we need to first figure out who are affected by the new CPF rates in 2022.

Not applicable for:

  • Those age 55 years old and below are not affected. They retain the existing CPF rate of 17% for employers and 20% for employees.
  • Those age above 70 years old are also not affected. They retain the existing CPF rates of 7.5% for employers and 5% for employees
  • Employees earning up to $750 per month are not affected. They retain a smaller CPF contribution rates for both employers and employees.
  • Singapore Permanent Residents (SPR) who are in year 1 or 2 are not affected, unless they opt to pay the full CPF rates during their first 2 years of obtaining PR status.

Applicable for:

Those age above 55 years old and up to 70 years old. The rate increase depends on the age category. See below for a breakdown.

New CPF Rates in 2022

There will be an increase in the CPF contribution rates starting 1 January 2022 and both employee and employer rates are affected. Remember, these changes only apply to employees who are 55 years old and above.

Changes to CPF Contribution Rates

Above 55 – 60+1.0%+1.0%+2.0%
Above 60 – 65+1.0%+1.0%+2.0%
Above 65 – 70+0.5%+1.0%+1.5%

Effective CPF Rates

55 & Below20.0%17.0%37.0%20.0%17.0%37.0%
Above 55 – 6013.0%13.0%26.0%14.0%14.0%28.0%
Above 60 – 659.0%7.5%16.5%10.0%8.5%18.5%
Above 65 – 707.5%5.0%12.5%8.0%6.0%14%
Above 707.5%5.0%12.5%7.5%5.0%12.5%

Age Factor

As CPF Rates are allocated according to employee’s age bracket, you should take note of any changes in age that crosses into a different age bracket.

Example 1

John was born in 5 January 1967

John is still considered 55 years old in the month of January 2022. Thus his contribution is based on “55 and Below”, which is 17% Employer and 20% Employee.

But in February 2022, John will apply “Above 55 to 60” CPF rates, which is 14% Employer and 14% Employee (new 2022 CPF Rates).

Example 2

Peter was born in 24 December 1966

Peter is considered above 55 years old in the month of January 2022. Thus his contributions is based on “Above 55 to 60”, which is 14% Employer and 14% Employee (new 2022 CPF Rates).