The Central Provident Fund (CPF) remains a cornerstone of Singapore’s social protection framework. It is a compulsory savings scheme that enables Singaporeans and Permanent Residents (PRs) to plan and pay for essential needs such as retirement, housing, and healthcare.
With effect from 1 January 2025, the CPF contribution rates have been revised to align with Singapore’s evolving workforce demographics and retirement needs. These adjustments aim to boost savings for all working individuals while maintaining affordability for employers.
CPF contributions involve both employer and employee payments and are calculated based on age, wage level, and residency status. Whether you’re a business owner, HR professional, or salaried employee, understanding the updated CPF structure is vital for compliance and financial planning.
Table of Contents
What is Singapore CPF Contribution Table 2025
CPF contributions are made monthly and are deducted from the employee’s wages. These contributions are divided into:
- Ordinary Wages (OW): Regular salary, with CPF capped at $7,400/month.
- Additional Wages (AW): Bonuses and one-off payments, with an annual cap.
The contributions go into three CPF accounts:
- Ordinary Account (OA) – for housing, education, and insurance.
- Special Account (SA) – primarily for retirement savings.
- MediSave Account (MA) – for medical and health-related expenses.
Overview
| Factor | Details |
|---|---|
| Effective From | 1 January 2025 |
| Applies To | Singapore Citizens & SPRs (3rd year onwards) |
| Ordinary Wages (OW) Ceiling | $7,400/month |
| Additional Wages (AW) Ceiling | $102,000 – total OW for the year |
| Age-Based Contributions | Varies across 3 brackets: ≤55, 55–60, 60–65 |
| SPR Graduated Rates | Lower rates in 1st & 2nd year of permanent residency |
| No CPF if Wages ≤ $50 | Applies across all age groups |
| Official CPF Portal | cpf.gov.sg |
CPF Rates for Singapore Citizens and SPRs (3rd Year Onwards)
As of 2025, Singapore Citizens and SPRs in their third year or more follow the full CPF contribution rates based on age and monthly income. Here’s a summary:
Age 55 and Below
| Monthly Wages | Total Rate | Employee | Employer |
|---|---|---|---|
| ≤ $50 | Nil | Nil | Nil |
| $50 – $500 | 17% | Nil | 17% |
| > $750 | 37% | 20% | 17% |
Age 55 to 60
| Monthly Wages | Total Rate | Employee | Employer |
|---|---|---|---|
| > $750 | 32.5% | 17% | 15.5% |
Age 60 to 65
| Monthly Wages | Total Rate | Employee | Employer |
|---|---|---|---|
| > $750 | 23.5% | 11.5% | 12% |
This tiered structure ensures that older workers contribute slightly less as they near retirement, allowing them to take home more income while still building retirement savings.
CPF Rates for Singapore Permanent Residents (SPRs)
New SPRs are given time to adjust to CPF obligations with graduated contribution rates during their first two years of residency. This phased approach eases the financial burden on both employers and employees.
1st Year Rates for SPRs
| Age Group | Total Rate | Employee | Employer |
|---|---|---|---|
| 55 and Below | 4% | Nil | 4% |
| 55 – 60 | 4% | Nil | 4% |
| 60 – 65 | 3.5% | Nil | 3.5% |
2nd Year Rates for SPRs
| Age Group | Total Rate | Employee | Employer |
|---|---|---|---|
| 55 and Below | 9% | 5% | 4% |
| 55 – 60 | 6% | 3.5% | 2.5% |
| 60 – 65 | 3.5% | 1.5% | 2% |
Optional Full Rate Application: Employers and employees may opt-in to contribute at full rates in Year 1 or 2 by submitting a joint application to the CPF Board.
CPF Contribution Ceilings and Limits
The CPF system includes income limits to ensure fairness and avoid disproportionate deductions:
- Ordinary Wage (OW) Ceiling: $7,400/month
- Additional Wage (AW) Ceiling: Capped at $102,000 minus the total OW subject to CPF for the year
These ceilings apply to both employee and employer contributions.
Rounding CPF Contributions
To ensure consistency, CPF contributions are subject to rounding rules:
- Amounts less than 50 cents are rounded down
- Amounts 50 cents or more are rounded up
These rules apply to both employer and employee shares.
How to Calculate CPF Contributions
While CPF calculations may seem technical, following these steps makes it easier:
Step-by-Step Guide
- Determine Wages: Sum up Ordinary and Additional Wages.
- Identify Age Group: Check the employee’s age to find the correct rate.
- Apply Rate: Use the contribution rate table to calculate the total contribution.
- Split Contribution: Deduct the employee’s share from the total to determine the employer’s portion.
- Round Final Amounts: Apply CPF rounding rules for compliance.
Conclusion
Singapore’s CPF system continues to evolve in step with the workforce’s needs. The 2025 CPF contribution updates aim to strengthen retirement adequacy and maintain affordability across age groups.
With structured tiers for Citizens and PRs, simplified rounding rules, and clear age-based brackets, CPF remains a well-regulated, efficient framework for social protection. Both employers and employees benefit from understanding these changes to plan better and contribute meaningfully toward a secure future.
Whether you’re planning for retirement, buying a home, or saving for healthcare, the CPF system offers a comprehensive solution that grows alongside your life goals.
FAQs
1. When do the new CPF contribution rates apply?
A = The updated rates take effect from 1 January 2025.
2. What is the CPF wage ceiling for 2025?
A = The monthly Ordinary Wage ceiling is $7,400.
3. Are CPF contributions mandatory for all workers?
A = Yes, CPF contributions are compulsory for all eligible Singapore Citizens and PRs.
4. Do new SPRs contribute CPF at full rates?
A = No, they contribute at graduated rates in their first two years unless they opt for full rates.
