The Central Provident Fund (CPF) is a retirement savings scheme that is mandatory for all employed Singaporeans and Singapore Permanent Residents. It enables them to save for their retirement and medical needs. In this article, we will explore the CPF contribution rates for employers and employees, and discuss how to determine your employees’ CPF contributions.
What is CPF Contribution?
CPF contribution is the mandatory contribution that employers must make on behalf of their employees, based on the employee’s salary.
The CPF contributions are made up of two parts: the employer’s contribution and the employee’s contribution. The employer’s contribution is known as the employer’s share of the CPF contribution.
As per the CPF Act, employers are required to make CPF contributions to the CPF Board on behalf of their employees. The employer’s share of the CPF contribution is calculated based on the employee’s age and salary range.
Employers play a major role in the CPF scheme, as they are responsible for calculating, deducting and making CPF contributions for their employees.
Employers are also required to submit their CPF contributions to the CPF Board by the 15th of the following month, in order to comply with the CPF Act.
In addition to the mandatory CPF contributions, employers may also voluntarily contribute to the Special Account (primarily for retirement needs) or the MediSave Account (primarily for healthcare needs), based on the Ministry of Manpower’s requirements.
The employer’s voluntary contributions to the Special Account and MediSave Account must not exceed 50% of the employee’s monthly wages.
What is the CPF Contribution Cap?
Prior to processing your employees’ CPF contributions, it is important to be aware of the prescribed monthly contribution limit. This limit is referred to as the CPF Wage Ceiling and encompasses two distinct components: the Ordinary Wage Ceiling and the Additional Wage Ceiling.
The Ordinary Wage Ceiling constitutes a CPF contribution threshold applicable to your employees’ monthly remuneration, currently set at S$6,000. This signifies that CPF contributions are applicable to the initial S$6,000 of their monthly salary.
Any amount surpassing S$6,000 is exempt from CPF deductions, consequently relieving the employer of the obligation to contribute to CPF accounts for earnings exceeding this threshold.
The Additional Wage Ceiling establishes a CPF contribution constraint on supplementary compensation elements such as yearly bonuses or supplementary incentive disbursements.
The computation for determining the Additional Wage Ceiling is represented by S$102,000 subtracted by the Ordinary Wages subject to CPF for the corresponding fiscal year.
CPF Contribution Rates for Employers and Employees
As of 1 January 2023, the CPF contribution rates for employees aged 55 to 70 have been increased in order to bolster their retirement security. Here is the CPF contribution rate for employers and employees based on the employee’s age.
Employee’s Age (years)
CPF Contribution Rates from 1 January 2023
(% of wage)
(% of wage)
(% of wage)
(% of wage)
55 and below
55 to 60
60 to 65
65 to 70
Determining Your Employees' CPF Contributions
Employers are responsible for calculating, deducting and making CPF contributions for their employees. Here is how you determine your employee’s CPF contributions:
1. Select the Contribution Rate Table Based on Citizenship Status
The first step in determining your employees’ CPF contributions is to select the contribution rate table that applies to your employee based on their citizenship status. You can see the tables here.
Table 1: Singapore Citizen or Singapore Permanent Resident (SPR) from the third year of SPR status
Table 2: SPR in the first year of SPR status
Table 3: SPR in the second year of SPR status
Please make sure that your employees give you the information regarding the date when they became Singapore Citizens or SIngapore Permanent Residents, as the applicable CPF contribution rate will vary depending on that.
If you do not know how to determine the year of SPR status, here is how:
The first year begins on the day of SPR conversion
The second year begins on the first day of the month after the first anniversary of SPR conversion
The third year begins on the first day of the month after the second anniversary of SPR conversion
For example, if your employee has obtained the SPR status on 15 January 2023, the start and end dates for first, second, and third year of obtaining SPR status are:
First year: 15 January 2023 – 31 January 2024
Second year: 1 February 2024 – 31 January 2025
Third year: 1 February 2025 – not applicable
2. Determine the Rates Based on Age Group and Wage Band
The CPF contributions have different rates based on the age group and wage band. New contribution rates apply from the first day of the month after the employee’s 55th, 60th, or 65th birthday. For instance, if your employee’s 55th birthday falls on 13 January 2023, than the contribution rates are:
For wages earned in January 2023
(55 years and below)
For wages earned in February 2023
(Above 55 to 60 years)
37% of total wages (>$750)
(Employer’s share = 17%;
Employee’s share = 20%)
28% of total wages (>$750)
(Employer’s share = 14%;
Employee’s share = 14%)
3. Determine the Total Wages Subject to CPF Contributions
An employee’s CPF contributions are calculated based on their Total Wages for a calendar month. Total Wages includes both Ordinary Wages (OW) and Additional Wages (AW), each of which is subject to different ceilings.
Notes: Deputy Prime Minister and Finance Minister Lawrence Wong announced in his Budget statement on 14 February 2023 that the Central Provident Fund (CPF) monthly salary ceiling will be gradually increased from S$6,000 to S$8,000 by 2026.
The first stage of this increase will take place from September 2023, with the CPF monthly salary ceiling going up by S$300 to S$6,300. This will be followed by further increases, with the ceiling rising to S$6,800 from January 2024, S$7,400 from January 2025, and finally reaching S$8,000 from January 2026.
However, this change will not affect people earning monthly salaries below the ceiling.
4. Compute the CPF Contributions on Total Wages
To calculate the Total CPF contributions for an employee, you must multiply the applicable contribution rate by their Total Wages that are subject to CPF. This total is made up of your contribution and that of the employee.
For example, if you are a Singapore Citizen born in August 1988 (35 years as of January 2023) with a Total Wages of SG$1000,00 (800 OW + 200 AW), your CPF contributions on January 2023 are:
Employer’s contribution: 1,000 x 17% = SG$170,00
Employee’s contribution: 1,000 x 20% = SG$200,00
CPF contribution total: 170 + 200 = SG$370,00
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