Wednesday, November 30, 2016

How Much CPF is Deducted from Salary

Ask around and you will be surprised that not many people actually know how much money is deducted from their salary for contribution to their CPF account.


The CPF salary ceiling in 2016 is $6000. This means that only the first $6000 you earn in a month attracts CPF contributions. For an employee below age 55, it will mean a total of 20% of $6000 is deducted from his gross salary for CPF. The amount deducted is therefore $1200.

Employers contribute 17% and that translates to $1020.

So the CPF deducted from one's gross salary is $1200 while the employer contributes $1020 (assuming one earns $6000 or more a month).

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