Singapore’s Central Provident Fund (CPF) is a key pillar of the country’s social security infrastructure. Designed to support citizens and permanent residents (PRs) in retirement, home ownership, and healthcare, CPF is a compulsory savings plan jointly funded by both employers and employees.
Starting 1 January 2025, updated CPF contribution rates will come into effect. These revised rates are intended to better reflect Singapore’s aging population, income changes, and the goal of ensuring long-term financial security for all working individuals. Whether you’re an employer calculating monthly payroll or an employee planning your future, understanding these updates is essential.
Table of Contents
Overview
| Category | Details |
|---|---|
| Implementation Date | 1 January 2025 |
| Applies To | Singapore Citizens & SPRs (3rd year onwards) |
| Ordinary Wage (OW) Monthly Ceiling | $7,400 |
| Additional Wage (AW) Yearly Cap | $102,000 – Total OW for the year subtracted |
| Contribution Based On | Age, residency status, and monthly income |
| SPR Adjustment Period | Lower rates in 1st and 2nd year of residency |
| Official Portal | cpf.gov.sg |
What Is the CPF Contribution Table?
The CPF scheme requires both employers and employees to make regular monthly contributions. These contributions are deducted from wages and are channelled into three dedicated accounts:
- Ordinary Account (OA): Supports expenses related to housing, insurance, and education.
- Special Account (SA): Reserved primarily for retirement savings.
- MediSave Account (MA): Used for healthcare and medical-related costs.
Contributions are divided into two wage categories:
- Ordinary Wages (OW): Monthly salary, CPF capped at $7,400.
- Additional Wages (AW): Non-monthly income like bonuses, capped annually.
Contribution Rates for Singapore Citizens & SPRs (3rd Year Onwards)
From 2025, Singapore Citizens and SPRs who have completed three years of residency will contribute at full CPF rates. These rates vary depending on age:
For Employees Aged 55 and Below
- Monthly Salary ≤ $50: No contributions from employer or employee.
- $50 – $500: Employer contributes 17%, employee contributes 0%.
- Above $750: Total CPF contribution is 37% (20% employee, 17% employer).
For Employees Aged 55 to 60
- Above $750: Total CPF contribution is 32.5% (17% employee, 15.5% employer).
For Employees Aged 60 to 65
- Above $750: Total CPF contribution is 23.5% (11.5% employee, 12% employer).
This tiered approach ensures that younger employees contribute more, while older workers nearing retirement retain a larger portion of their income.
CPF Contribution Rates for SPRs in Years 1 and 2
Newly awarded Singapore Permanent Residents (SPRs) are offered a gradual adjustment period. This helps both employees and employers ease into the CPF system.
1st Year SPR Contribution Rates
| Age Group | Total CPF Rate | Employee Share | Employer Share |
|---|---|---|---|
| 55 and below | 4% | 0% | 4% |
| 55 – 60 | 4% | 0% | 4% |
| 60 – 65 | 3.5% | 0% | 3.5% |
2nd Year SPR Contribution Rates
| Age Group | Total CPF Rate | Employee Share | Employer Share |
|---|---|---|---|
| 55 and below | 9% | 5% | 4% |
| 55 – 60 | 6% | 3.5% | 2.5% |
| 60 – 65 | 3.5% | 1.5% | 2% |
Optional Early Transition: Employers and SPR employees can jointly apply to start contributing at full rates even during their 1st or 2nd year by notifying the CPF Board.
Contribution Ceilings for CPF
To ensure equity and affordability, CPF has established limits on contributions:
- Ordinary Wage (OW) Monthly Cap: $7,400
- Additional Wage (AW) Annual Cap: $102,000 minus the cumulative OW for the year
These ceilings prevent excessive deductions from high salaries and standardize CPF contribution limits.
Rounding CPF Contributions
The CPF system follows specific rules when finalizing contribution amounts:
- Amounts ending in less than 50 cents are rounded down.
- Amounts 50 cents or more are rounded up.
This rounding is applied to both employer and employee contributions to maintain consistency and reduce calculation discrepancies.
How to Calculate CPF Contributions: Step-by-Step
Understanding CPF calculations can be straightforward if approached methodically:
Step 1: Determine the Wages
Add the employee’s Ordinary Wages (OW) and Additional Wages (AW).
Step 2: Identify the Age Group
Select the correct age bracket of the employee to apply the accurate rate.
Step 3: Apply the Contribution Rate
Use the current CPF contribution table to calculate the combined rate for the age and wage bracket.
Step 4: Divide Employer and Employee Shares
Based on the total rate, split the amount into the employer’s and employee’s respective shares.
Step 5: Apply Rounding Rules
Ensure compliance by rounding contributions according to CPF rounding policies.
Employers are encouraged to use CPF’s online calculator or the official CPF portal for accuracy.
Q1. When will the new CPF rates begin?
A: They come into effect on 1 January 2025.
Q2. What is the CPF monthly wage ceiling for 2025?
A: It is $7,400 per month for Ordinary Wages.
Q3. Are CPF contributions required for all workers?
A: Yes, CPF is mandatory for all eligible citizens and SPRs with monthly wages above $50.
