Originally posted by Cindyfeh:
Salary ceiling for CPF payments will drop from $5K to $4.5K come 1 Jan 2006. It means that monthly earnings over $4,500 will NOT receive CPF contributions. This reduces CPF balances as well as incomes.
The above information may not be useful for most of us here but think of it in 5 to 10 years time you heng heng earn $4.6K and you will miss out on the employer CPF contribution!
Also must keep reminding yourself that the gov can lower this ceiling some more.It was lowered from $6k to $5k early this year 2005. Next year is $4.5K. Who knows 5 years down the road it might be reduced to $2K. If that happens, kiss your 13% (or whatevers left of it) employer CPF contribution good bye and maybe also kiss your flat good bye if you depended too heavily on using your CPF to buy your flat.
Be warned.
Amen.
I think you have ther wrong concept, when it eventually drops to $4.5k, and you suay suay earn $4.6k, then only the extra $100 the govt will not top up the CPF, meaning u rugi only abt $13. The remaining 4.5K they will still pay u yr 13%