Assessing Limited Reach of CPF Ordinary Wage Ceiling Increase and Plans to Review Wage Ceiling Framework

86 Mr Patrick Tay Teck Guan asked the Acting Minister for Manpower noting that the recent increase of the CPF Ordinary Wage Ceiling from $6,000 to $8,000 benefitted around 20% of members (a) what may be the reasons for this low percentage; and (b) whether there are plans to review this wage ceiling.

Ms Jasmin Lau: Twenty percent refers to the active Central Provident Fund (CPF) members who saw an increase in CPF contributions from the recent CPF Ordinary Wage ceiling adjustments. This reflects the proportion of employees earning more than $6,000 in monthly Ordinary Wages but less than the $102,000 cap in annual wages.

We will continue to review CPF wage ceilings periodically to ensure that they cover the broad majority of resident workers.