CPF

In January 1999, the employer's CPF contribution rate was reduced by 10%-points to 10% of wages as part of the cost cutting package to cushion the impact of the Asian economic crisis on businesses. With the quick economic rebound, the employer's CPF contribution rate was partially restored by 2%-points to 12% of wages in April 2000.

In view of the strong economic growth and rising wage pressures, a higher quantum of the employers' CPF contribution rate should be restored.After consulting employers and the unions, the Government has decided to raise the employers' CPF contribution rate by 4%-points, from 12% of wages currently to 16% with effect from 1 January 2001.

In 2005, our Singapore Economy grew by 6.4%. As then Prime Minister Goh Chok Tong delivered his 13th National Day Rally speech on 17 Aug 03 at the NUS University Cultural Centre said, "I would, therefore want the option of cutting CPF in bad years, and conversely, putting more into the CPF in good years"

So, since the economy had done well last year, think it is time to revise upwards the employers's contribution back to 20%.

PS: CPF changes take effect from 1 Oct 2003 with employers' contribution rate down from 16% to 13% due to poor economy.