Just being a busybody here, but below’s a reminder for employers and employees alike.

Excerpt from the CPF website:

‘From 1 September 2011, the employers’ CPF contribution rate will be increased by 0.5 percentage point. For employees who are above 35 years old and earning monthly wages of up to $1,500, the higher employer CPF contribution rate will continue to be phased in from 0% at the wage of $50 to the new full rate at the wage of $1,500. The increased contribution will be credited to the employees’Special Account (including those above 55 years of age).

However, the additional 0.5 percentage point does not apply to employers and first and second year Singapore Permanent Residents (SPR) contributing CPF at graduated employer and employee rates.’

To summarise, Singapore citizens, 3rd-year PRs, as well as 1st & 2nd year PRs who are, in joint agreement with their employers, contributing the full employee and employer rates respectively will be affected. The rates for the most common tier of our workforce will be as follows:

50 years & below (with monthly income above S$1,500.00):
Employee contribution rate remains unchanged at 20%.
Employer contribution rate increases from 15.5% to 16% w.e.f. 1 September 2011.

All details may be found at the link below.


The ordinary wage ceiling has also been adjusted from S$4,500.00 to S$5,000.00 monthly, also w.e.f. 1 September 2011. In case you didn’t know before, when you contribute 20% of your monthly income as the employee portion of the CPF, this 20% is applicable only for the first S$5,000.00 (new ceiling) of your income (exclusive of bonus…search for Additional Wage in the CPF website). For instance, if your gross monthly salary is S$6,000.00, you need to contribute 20% of S$5,000.00 only.

We’ve all heard of how consumers are more knowledgeable these days. This is not only relevant for external customers, but it’s also important to be smart internal clients. I’m not saying that you should try to be a smart aleck and generally make life difficult for your HR department. I’m saying that as employees, we should be aware of our rights and as employers, we should not be errant in our duties and take advantage of people just because they are ignorant of their rights.

I’m not in favour of the employee. At the same time, I’m not on the side of the company. I’m advocating a very simple concept, and that is teamwork. Sometimes, employees have to make certain sacrifices for the company to survive/change for the better, while companies should be clear and swift in rewarding and enforcing disciplinary measures.

I see it as working for the Greater Good, and if anyone rocks the boat, all on board suffer. Although I may push people who rock the boat overboard (man, they must have really pushed my limits), sometimes I’m the one who rocks the boat because the boat needs an overhaul.

I guess a lot of young people out there may go, ‘So troublesome! Might as well jump ship!’

Well, if you’ve never weathered storms in a rocking boat, you’ll never know how dark the skies can truly get, never experience the feeling of elation and triumph when light appears just after the darkest hour, and how insignificant yet important one is in the whole scheme of nature.