Singapore CPF Contribution Rates 2026 · Complete Guide
The Central Provident Fund (CPF) is Singapore’s mandatory social security savings scheme. For citizens and permanent residents, it provides a tripartite safety net covering retirement, healthcare (Medisave), and home financing.
1. Standard Contribution Rates for Citizens & PRs
For private sector employees aged 55 and below earning more than S$750 per month, the statutory employee CPF deduction is 20% of monthly Ordinary Wages. Employers contribute an additional 17%, generating a total monthly CPF contribution of 37% of salary into the employee’s account.
2. The Ordinary Wage (OW) Ceiling
CPF is not deducted on uncapped earnings. The monthly Ordinary Wage (OW) ceiling limits the maximum salary subject to CPF. As part of a phased multi-year schedule, the ceiling was raised to S$7,400 in 2025 and reaches S$8,000 in 2026. This caps maximum employee monthly deductions at S$1,600 and employer contributions at S$1,360.
3. Tax Exemption & Retirement Growth
All mandatory employee CPF contributions directly reduce your chargeable income for Singapore personal income tax. For instance, an employee earning S$72,000 per year who contributes S$14,400 to CPF pays tax only on the remaining S$57,600, yielding effective income tax rates under 3.5%.
4. Expatriate Exemption Rules
Foreign professionals working in Singapore on Employment Passes (EP), S Passes, or Work Permits are entirely exempt from CPF contributions. Employers make no CPF payments for foreign workers, meaning foreign professionals receive their full gross salary minus modest IRAS personal income tax.
All figures, threshold ceilings, and contribution formulas in this guide are grounded directly in published legislation from the Central Provident Fund (CPF) Board Contribution Allocation Guidelines ↗ .