From 1 January 2005, the CPF contribution rate for workers aged above 50 to 55 will be reduced from the current 33% to 30%. The employer contribution rate will be reduced from the current 13% to 11%. The employee contribution rate will be reduced by 1 percentage point to 19%. This contribution rate will be further reduced to 27% from 1 January 2006.

The salary ceiling for CPF contributions will be reduced from $5,500 to $5,000. It will be further lowered to $4,500 on 1 January 2006.

The maximum amount of wages that will attract CPF contributions in 2005 will be $85,000. The maximum Additional Wages that will attract CPF is the difference between $85,000 and the total ordinary wages subject to CPF contributions for the year.

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