Singapore’s fiscal year runs from January to December, so key compliance updates took effect on 1 January 2025. The most important ones are below.
CPF contribution rates for employees aged above 55 to 65 have increased, aiming to enhance retirement savings for senior workers:
Thus, the combined CPF contribution rate increased to 32.5% from 31% for employees aged above 55 to 60 (15.5% for employers and 17% for employees); and increased to 23.5% from 22% for employees aged 61 to 65 (12% for employers and 11.5% for employees).
The CPF annual salary ceiling has remained the same (SGD 102,000), but the monthly ceiling has increased to SGD 7,400 in 2025 from SGD 6,800 in 2024. This monthly increase allows employees with higher salaries to contribute more to their CPF accounts, helping them grow their retirement savings more effectively.
Any templates using these CPF contribution rates and ceilings should be reviewed and updated accordingly, as should any labour cost forecasting, which should reflect these changes.
EP candidates must meet eligibility requirements and earn at least the qualifying salary. The minimum qualifying monthly salary for an EP has increased as follows:
As the changes impact both new applications and renewals, employers should consider reviewing salaries being offered to existing EP holders to determine if any action is required.
Effective for the year of assessment 2025, the Inland Revenue Authority of Singapore (IRAS) has released an updated format for tax clearance Form IR21, Notification of a Non-Citizen Employee’s Cessation of Employment or Department From Singapore. Employers must use this revised form when reporting remuneration for non-Singaporean employees who are ceasing employment or departing from Singapore.
Also effective for the year of assessment 2025, IRAS has released the latest format for the return of employee remuneration (Form IR8A, Return of Employee’s Remuneration for the Year Ended 31 December 2024). This updated form must be used. Form IR8A needs to be issued for every employee by 1 March 2025.
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Max van der Klis-Busink, BBA, is the Owner of Passion For Payroll and Vice President of Global Strategy on PayrollOrg’s Board of Directors.