Singapore CPF Contribution Table 2025: One of the main pillars of Singapore’s social security strategy is the Central Provident Fund (CPF) system, which offers financial security at all stages of life. Contributions to the CPF, which was created to assist citizens and permanent residents (PRs) in saving for necessities, include retirement, housing, and healthcare. Employer and employee contributions are combined in this plan to promote long-term financial security and stability.
A tiered system is used to structure CPF contributions, accounting for differences in income, work status, and age. New contribution rates, which go into effect on January 1, 2025, are intended to increase savings potential while maintaining affordability for both employers and employees. By striking a balance between immediate financial obligations and long-term financial planning, these changes are intended to satisfy the changing needs of Singapore’s workforce.
Additionally, the CPF system is essential in encouraging citizens and PRs to develop disciplined saving practices and financial literacy. CPF continues to promote the social welfare and economic resilience of the country with its thorough coverage and methodical approach.
Comprehending CPF Contributions
The CPF receives contributions from employers and employees. The employee’s age, income, and citizenship status all affect the rates. The employee’s entire salary, which includes both Ordinary Wages (OW) and Additional Wages (AW), is the basis for contributions.
- Ordinary Wages (OW): CPF contributions are capped at $7,400 per month.
- Bonuses and other non-recurring payments with contribution caps based on yearly income are known as additional wages (AW).
In addition to offering financial stability, the CPF system encourages employees to save and take responsibility for their actions. A tiered system is used to calculate CPF contributions.
Rates of CPF Contribution for Singaporean Nationals
Singaporean citizens and third-year students have different CPF contribution rates depending on their age group. The key categories are summarized as follows:
Age 55 and Below
| Monthly Wages | Total Contribution Rate | Employee’s Share | Employer’s Share |
| ≤ $50 | Nil | Nil | Nil |
| $50 – $500 | 17% | Nil | 17% |
| > $750 | 37% | 20% | 17% |
Age 55 to 60
| Monthly Wages | Total Contribution Rate | Employee’s Share | Employer’s Share |
| > $750 | 32.5% | 17% | 15.5% |
Age 60 to 65
| Monthly Wages | Total Contribution Rate | Employee’s Share | Employer’s Share |
| > $750 | 23.5% | 11.5% | 12% |
This methodical approach guarantees that CPF contributions are sustainable and balanced throughout various life stages, assisting staff members in building up funds for retirement, housing, and medical expenses.
How to Determine Your CPF Contributions?
Although calculating CPF contributions may appear difficult, accuracy is ensured by following these steps:
- Total wages are calculated by adding OW and AW.
- Depending on your age and income level, use the appropriate rate.
- For accuracy, adhere to rounding rules.
- To calculate the employer’s share, from the total contribution subtract the employee’s share.
The Value of CPF Payments
Contributions to the CPF are essential to creating a stable financial future. The money provides for necessities like:
- Healthcare: Employees can save money for insurance premiums and medical costs by using the MediSave account. In times of medical emergency, this lessens the financial strain.
- Housing: CPF funds can be used to service housing loans or buy HDB apartments, encouraging stability and homeownership.
- Retirement: Savings in a CPF account provide protection and peace of mind by guaranteeing a consistent income following retirement.
