CPF
What is Central Provident Fund (CPF)?
Singapore’s mandatory social-security savings scheme. Each month a slice of your salary, topped up by an employer contribution, goes into CPF and is split across accounts for housing, healthcare and retirement. The savings earn government-guaranteed interest.
How your CPF contributions work
Every month you and your employer both pay a percentage of your wage into CPF. For employees aged 55 and below the combined rate is 37% — 20% from you and 17% from your employer — and it steps down with age: 34% from 55 to 60, 25% from 60 to 65, 16.5% from 65 to 70, and 12.5% above 70 (in force from 1 January 2026). Contributions are charged only on the first $8,000 of monthly salary (the 2026 Ordinary Wage ceiling), and total contributions from all sources are capped at the CPF Annual Limit of $37,740 a year.
The money is split across three accounts — the Ordinary Account, Special Account and MediSave — with the largest share going to your Ordinary Account when you are young and progressively more directed to MediSave as you age. From age 55 a Retirement Account is created to hold your retirement savings.
Why CPF matters
CPF is the backbone of most Singaporeans’ finances: it pays for your flat, your hospital bills and MediShield Life premiums, and your retirement income through CPF LIFE. Balances earn government-guaranteed interest — a floor of 2.5% a year in the Ordinary Account and around 4% in the Special, MediSave and Retirement Accounts — and the first $60,000 of your combined balances earns an extra 1% (with a further 1% on the first $30,000 from age 55). Because the returns are risk-free, how you manage CPF is one of the biggest levers over your long-term wealth.