The Central Provident Fund isn't a tax, but it's the single biggest deduction most Singapore Citizens and Permanent Residents see on their payslip — and it works differently from pension systems in most other countries.
Mandatory only for Citizens and PRs
Unlike income tax, which applies to almost everyone earning in Singapore, CPF contributions are only compulsory for Citizens and Permanent Residents. Foreigners on an Employment Pass, S Pass, or Work Permit don't contribute to CPF at all — their retirement and healthcare arrangements are handled separately, typically through private means.
Contribution rates step down with age
| Age | Employee | Employer | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 | 17% | 15.5% | 32.5% |
| Above 60 to 65 | 11.5% | 12% | 23.5% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 | 5% | 7.5% | 12.5% |
Rates only apply up to the Ordinary Wage ceiling ($8,000/month) — earnings above that aren't subject to CPF.
Three accounts, three purposes
| Account | Purpose |
|---|---|
| Ordinary Account (OA) | Housing, insurance, approved investments, education |
| Special Account (SA) | Retirement savings and retirement-related investments |
| MediSave Account (MA) | Hospital bills and approved medical insurance |
Both employer and employee contribute
Unlike a typical pension where only the employer or only the employee contributes, CPF splits the burden — your employer's share doesn't come out of your paycheck, but it's still a real cost of employing you, and it's paid directly into your CPF accounts alongside your own contribution.
Calculate your exact CPF contributions.
Use the CPF Calculator →You can't access it freely
CPF savings are generally locked until you reach the relevant withdrawal age or meet specific conditions (like buying a home, for the OA portion) — it's designed as long-term, purpose-restricted savings rather than a flexible bank account.
CPF contribution rates and the Ordinary Wage ceiling are reviewed periodically by the government. Verify current figures with the CPF Board before making financial decisions.