Starting September 2025, the Singapore government is implementing significant CPF changes for older workers, particularly those aged 60 and above. This move aligns with the nation’s continued push to support financial security for aging workers while encouraging extended participation in the labour force.
The CPF rate hike 60+ age group is part of a broader strategy under the Action Plan for Successful Ageing. These changes aim to improve retirement adequacy without placing undue burden on either employers or employees.
Why Is There a CPF Rate Hike for Older Workers?
The CPF (Central Provident Fund) is the bedrock of Singapore’s social security system. As life expectancy increases, ensuring that older workers build sufficient savings has become a key national priority. Therefore, the government has decided to raise the CPF contribution rates for those aged 60 to 70.
Key motivations for this CPF reform include:
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Enhancing long-term financial stability for seniors
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Encouraging continued employment beyond traditional retirement age
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Providing stronger support through Medisave and retirement accounts
Updated CPF Contribution Rates for 60+ Age Group
The CPF rate hike 60+ age group takes effect in September 2025, and affects both employers and employees. The updated CPF changes for older workers are structured to gradually increase the contribution levels while keeping them sustainable.
New CPF Contribution Rates from September 2025
| Age Group | Total CPF Contribution (%) | Employer Share (%) | Employee Share (%) |
|---|---|---|---|
| 60–65 years | 25.0% (↑ from 23.0%) | 11.0% | 14.0% |
| 65–70 years | 19.5% (↑ from 17.5%) | 9.5% | 10.0% |
| Above 70 years | 12.5% (unchanged) | 7.5% | 5.0% |
These revised rates show that the government is easing older workers into a stronger CPF support system, especially for the 60–70 age group.
Impact on Employers and Employees
The CPF changes for older workers come with important considerations for both employers and senior employees.
For Employers:
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Slight increase in employer CPF contributions
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Need to adjust payroll systems and HR planning
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Opportunity to retain experienced talent with stronger support
For Employees:
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Higher CPF savings in the Special and Medisave Accounts
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Better healthcare and retirement planning
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Slight reduction in take-home pay, offset by long-term gain
These CPF reforms provide older workers aged 60+ with more resources for their retirement and healthcare needs, directly addressing concerns about outliving savings.
CPF Allocation Structure for 60+ Workers
The increased contributions will continue to be distributed into:
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Special Account (SA): For long-term retirement savings
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Medisave Account (MA): For healthcare and medical needs
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Ordinary Account (OA): Smaller allocation, primarily for housing and investment
This allocation prioritizes long-term security and medical readiness for aging workers.
Supporting Singapore’s Aging Workforce
The CPF rate hike 60+ age group also fits within broader labour policies aimed at fostering inclusive employment:
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Re-employment age has increased to 70
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SkillsFuture initiatives help senior workers stay relevant
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Employers receive support through grants for hiring older workers
Together, these efforts create a more robust safety net for seniors while enhancing national productivity.
Conclusion
The upcoming CPF changes for older workers mark a pivotal moment in Singapore’s ongoing CPF reforms. The CPF rate hike for the 60+ age group will come into effect in September 2025, ensuring that older employees enjoy greater savings and stronger support for their golden years. These new CPF rates are not just about numbers—they’re about dignity, inclusion, and preparedness for a longer, healthier life. Employers and employees alike should stay informed and adapt to this important update in Singapore’s labour landscape.
FAQs
What is the CPF contribution rate for workers aged 60–65 starting September 2025?
From September 2025, workers aged 60–65 will have a total CPF contribution rate of 25%, with 11% from the employer and 14% from the employee.
Are there CPF changes for workers over 70?
No, the CPF contribution rate for workers over 70 remains unchanged at 12.5% in total.
Why is the CPF rate increasing for the 60+ age group?
The CPF rate hike 60+ age group is intended to improve retirement adequacy and support medical savings for older workers.
How will these CPF changes affect employers?
Employers will see a slight increase in their CPF contribution rates, especially for staff aged between 60 and 70.
Will older employees take home less salary after this change?
Yes, slightly, due to increased employee CPF contributions. However, this is offset by enhanced savings in the CPF accounts for future needs.
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