CPF Contribution Singapore

The CPF is a social security system in Singapore contributed by employers and employees. CPF is only applied to Singapore citizens and permanent residents, it doesn’t apply to foreigners who work in Singapore under Employment Pass, S Pass or work permit. At age 55 years old, you can start to withdraw your CPF funds but to get a monthly pay out it will start once you turn 65 years old. The amount you can withdraw depends on how much money you have in the Ordinary Account and Special Account. Let us first explain what contribution rates are and give some real life examples.

Employee CPF contribution rates

At the end of the month, your employer will automatically pay the CPF contribution for you. He will pay the employer CPF contribution and he will also pay the employee (your contribution). Your take home pay is what is left after the employer has deducted the employee CPF contribution from your salary. The CPF contribution rates are explained as following:

• For employees aged 55 and under, CPF contribution rate is 20%. For employers, CPF contribution rate is 17%. So the total contribution rate is 37%.
• For employees aged 55 to 60, CPF contribution rate is 13%. For employers, CPF contribution rate is 13% too. So the total contribution rate is 26%.
• For employees aged 60 to 75, CPF contribution rate is 7.5%. For employers, CPF contribution rate is 9%. So the total contribution rate is 16.5%.
• For employees aged over 65, CPF contribution rate is 5%. For employers, CPF contribution rate is 7.5%. So the total contribution rate is 12.5%.

For example:

• Leo, a 35 years old warehouse worker with $1.700 salary will contribute to his CPF as following:



-Total CPF contribution: 37% x S$1.700 = S$629 (rounded to nearest dollar)

-Employee’s share of CPF contribution: 20% x S$1700 = S$340 (cents should be dropped)

-Employer’s share of CPF contribution: $629 - S$340 = S$289



Leo will contribute to his CPF for S$340 and his employer has to contribute S$289. Leo receives a take home pay is S$1.360 (S$ 1.700 base salary - S$340 employee CPF contribution)

• Mia, a 23 years old admin assistant with S$2300 salary will contribute to her CPF as following:



-Total CPF contribution: 37% x S$2300 = S$851 (rounded to nearest dollar)

-Employee’s share of CPF contribution: 20% x S$ 2300 = S$460 (cents should be dropped)

-Employer’s share of CPF contribution: S$851 - S$460 = S$391



Mia will contribute to her CPF for S$460 and her employer has to contribute S$391. Mia receives a take home pay is S$1840 (S$2300 base salary - S$460 employee CPF contribution)

If you want to calculate how much CPF you need to contribute, visit this link CPF contribution calculator