Employer CPF contribute rate increase will be done gradually in two steps to moderate the impact on employers. The first 0.5% point increase will be implemented on 1 September 2010, and be made into the Medisave Account (MA).
The remaining 0.5% point increase will be effected 6 months later on 1 March 2011, and will be made to the Special Account (SA).
Currently, self-employed persons (SEPs) with annual net trade income exceeding $6,000 are required to contribute to their MA. With the 0.5% increase in employer CPF contribution to MA, the Medisave contribution rates for SEPs will also be increased by 0.5% with effect from 1 September 2010.