CPF Contribution Rates 2022: All You Need To Know About the Latest Rates & Contribution Caps
When I first graduated, the Central Provident Fund (CPF) was one of the most important topics for me to understand regarding financial planning.
Being one of the core pillars of my retirement planning, I knew I had to master this topic to better plan for my own future.
And it can be very confusing with so many different CPF terms and schemes…
What can I say? Adulting is tough.
Don’t worry if you’re having trouble navigating this confusing adult maze because we’ve got you!
Since we’ve previously touched on CPF interest rates, CPF LIFE or even how the government manages our CPF money…
Today, we’ll be looking at CPF contribution and allocation rates.
Disclaimer: this is not a sponsored article. The opinions expressed here are based on our understanding of existing CPF policies. Please do your diligence and check with CPF to clarify your questions before doing anything!
TL;DR: CPF Contribution Rates 2022 — Employer CPF Contribution and Employee CPF Contribution
According to CPF, here are the latest CPF contribution and allocation rates for Singapore Citizens (SCs) and Singapore Permanent Residents [(SPRs) from the third year onwards] earning more than $750 a month:
Contribution Rate for Monthly Wages ≥$750
(From 1 Jan 22)Allocation Rates (% of Total Wages)
Age
(Years)Employer's Contribution Employee's Contribution Total OA SA MA
≤35 17 20 37 23 6 8
>35 - 45 21 7 9
>45 - 50 19 8 10
>50 - 55 15 11.5 10.5
>55 - 60 14 14 28 12 5.5 10.5
>60 - 65 10 8.5 18.5 3.5 4.5 10.5
>65 - 70 8 6 14 1 2.5 10.5
>70 7.5 5 12.5 1 1 10.5
Note: The CPF allocation is first computed for the MediSave Account, followed by the Special Account. The remainder will be allocated to the Ordinary Account.
For context, here are the CPF contribution rates before this year’s changes:
| Employee's age (years) | Current Contribution Rate | CPF Contribution Rates from 1 Jan 2022 (monthly wages >$750) | CPF Contribution Rates ~2030 | ||
|---|---|---|---|---|---|
| Total (% of wage) | Total (% of wage) | By Employer (% of wage) | By Employee (% of wage) | Total | |
| 55 & below | 37% | 37% | 17% | 20% | 37% |
| Above 55 to 60 | 26% | 28% (+2%) | 14% (+1%) | 14% (+1%) | 37% |
| Above 60 to 65 | 16.5% | 18.5% (+2%) | 10% (+1%) | 8.5% (+1%) | 26% |
| Above 65 to 70 | 12.5% | 14% (+1.5%) | 8 (+0.5%) | 6% (+1%) | 16.5% |
| Above 70 | 12.5% | 12.5% | 7.5% | 5% | 12.5% |
What Are CPF Allocation and Contribution Rates? — CPF Contribution by Age and More
Before we begin, let’s start from the basics.
As long as you’re an employed working adult (i.e. a salaried employee), you’ll be required to contribute to your CPF account.
CPF contribution rates refer to the percentage of wages that you and your employer have to contribute towards your CPF account.
Both employer and employee contributions will be paid to your CPF accounts.
Your CPF contributions are distributed to your Ordinary Account (OA), Special Account (SA), and MediSave Account (MA) according to the CPF allocation rates.
CPF Allocation Rates (2022)
| Employee’s Age (Years) | Ordinary Account (Ratio of Contribution) | Special Account (Ratio of Contribution) | MediSave Account (Ratio of Contribution) |
|---|---|---|---|
| 35 & below | 0.6217 | 0.1621 | 0.2162 |
| Above 35 – 45 | 0.5677 | 0.1891 | 0.2432 |
| Above 45 – 50 | 0.5136 | 0.2162 | 0.2702 |
| Above 50 – 55 | 0.4055 | 0.3108 | 0.2837 |
| Above 55 – 60 | 0.4286 | 0.1964 | 0.375 |
| Above 60 – 65 | 0.1893 | 0.2432 | 0.5675 |
| Above 65 – 70 | 0.0715 | 0.1785 | 0.75 |
| Above 70 | 0.08 | 0.08 | 0.84 |
Source: CPF | CPF Allocation Rates from 1 January 2022 Private Sector / Non-Pensionable Employees (Ministries, Statutory Bodies & Aided Schools)
Note: The CPF allocation is first computed for the MediSave Account, followed by the Special Account. The remainder will be allocated to the Ordinary Account.
Confused by the ratios?
Here’s an example which should make it clearer.
Example of CPF Allocation to the Three CPF Accounts
Let’s take the example of Calmond a 30-year-old employee and working adult.
If the CPF contribution of an employee (30 years old) is $100, the allocation of his CPF contribution will be computed as:
- Employee’s Age (Years): 35 and below
- Total CPF Contribution Amount: $100
- MediSave Account: $21.62 ($100 x 0.2162).
- Special Account: $16.21 ($100 x 0.1621)
- Ordinary Account: $62.17 ($100 – $21.62 – $16.21).
CPF Contribution Rates (2022): Minimum Salary for CPF Contribution
In total, there are five categories for CPF contribution rates:
- SCs and PRs (third year onwards) who earn ≥$750 a month
- SCs and PRs (third year onwards) who earn <$750 a month
- Self-employed persons (SEPs)
- SPR (first year)
- SPR (second year)
But as most would fall under the first three categories, we would not cover the CPF contribution rates for first year and second year SPRs. But you can read all their CPF contribution rates here.
1. CPF Contribution and Allocation Rates For Singapore Citizens and Permanent Residents Earning ≥$750 a Month
These are the current contribution and allocation rates across different age groups for the first category of people.
CPF Contribution Rate Table from 1 January 2022 for Singapore Citizens or Singapore Permanent Residents (third year onwards)
| Contribution Rate for Monthly Wages ≥$750 (From 1 Jan 22) | Allocation Rates (% of Total Wages) | |||||
|---|---|---|---|---|---|---|
| Age (Years) | Employer's Contribution | Employee's Contribution | Total | OA | SA | MA |
| ≤35 | 17 | 20 | 37 | 23 | 6 | 8 |
| >35 - 45 | 21 | 7 | 9 | |||
| >45 - 50 | 19 | 8 | 10 | |||
| >50 - 55 | 15 | 11.5 | 10.5 | |||
| >55 - 60 | 14 | 14 | 28 | 12 | 5.5 | 10.5 |
| >60 - 65 | 10 | 8.5 | 18.5 | 3.5 | 4.5 | 10.5 |
| >65 - 70 | 8 | 6 | 14 | 1 | 2.5 | 10.5 |
| >70 | 7.5 | 5 | 12.5 | 1 | 1 | 10.5 |
Source: CPF | CPF Contribution Rate Table from 1 January 2022 for Singapore Citizens or Singapore Permanent Residents (third year onwards) earning ≥$750 a month
The table above shows that CPF contribution and allocation rates would vary across different age groups.
Along with the adjustments to the retirement age, CPF contribution rates will also be raised gradually over the years for older workers in tandem with the ageing workforce.
2. CPF Contribution and Allocation Rates For Singapore Citizens and Permanent Residents Earning <$750 a Month
| CPF Contribution Rate Table from 1 January 2022 for Singapore Citizens or Singapore Permanent Residents (3rd year onwards) |
|||
|---|---|---|---|
| Employee’s Age (Years) | Employee’s total wages for the calendar month | Total CPF contributions (Employer’s & Employee’s share) | Employee’s share of CPF contributions |
| 55 & below | ≤ $50 | Nil | Nil |
| > $50 to $500 | 17% (TW) | Nil | |
| > $500 to $750 | 17% (TW) + 0.6 (TW - $500) | 0.6 (TW - $500) | |
| > $750 | [37% (OW)]* + 37% (AW) * Max. of $2,220 | [20% (OW)]* + 20% (AW) * Max. of $1,200 |
|
| Above 55 - 60 | ≤ $50 | Nil | Nil |
| > $50 to $500 | 14% (TW) | Nil | |
| > $500 to $750 | 14% (TW) + 0.42 (TW - $500) | 0.42 (TW - $500) | |
| > $750 | [28% (OW)]* + 28% (AW) * Max. of $1,680 | [14% (OW)]* + 14% (AW) * Max. of $840 |
|
| Above 60 - 65 | ≤ $50 | Nil | Nil |
| > $50 to $500 | 10% (TW) | Nil | |
| > $500 to $750 | 10% (TW) + 0.255 (TW - $500) | 0.255 (TW - $500) | |
| > $750 | [18.5% (OW)]* + 18.5% (AW) *Max. of $1,110 | [8.5% (OW)]* + 8.5% (AW) * Max. of $510 |
|
| Above 65 - 70 | ≤ $50 | Nil | Nil |
| > $50 to $500 | 8% (TW) | Nil | |
| > $500 to $750 | 8% (TW) + 0.18 (TW - $500) | 0.18 (TW - $500) | |
| > $750 | [14% (OW)]* + 14% (AW) * Max. of $840 | [6% (OW)]* + 6% (AW) * Max. of $360 |
|
| Above 70 | ≤ $50 | Nil | Nil |
| > $50 to $500 | 7.5% (TW) | Nil | |
| > $500 to $750 | 7.5% (TW) + 0.15 (TW - $500) | 0.15 (TW - $500) | |
| > $750 | [12.5% (OW)]* + 12.5% (AW) * Max. of $750 | [5% (OW)]* + 5% (AW) * Max. of $300 |
|
| Notes: For Private Sector / Non-Pensionable Employees (Ministries, Statutory Bodies & Aided Schools) |
|||
| OW: Ordinary Wages (capped at OW Ceiling of $6,000) AW: Additional Wages TW: Total Wages = OW + AW |
|||
| Steps to compute CPF contribution: 1) Compute the total CPF contribution (rounded to the nearest dollar). Cents should be dropped for an amount less than 50 cents. An amount of 50 cents and above should be treated as an additional dollar. 2) Compute the employee’s share of CPF contribution (cents should be dropped). 3) Employer’s share = Total contribution - Employee’s share |
|||
| These rates are also applicable to first and second year Singapore Permanent Resident (SPR) employees and their employers after CPF Board approves their joint application to contribute to CPF at full employer- full employee rates. |
|||
Source: CPF | CPF Contribution Rate Table from 1 January 2022 for Singapore Citizens or Singapore Permanent Residents (third year onwards) earning <$750 a month
CPF Contribution Calculator: How to Calculate CPF Contribution
3. CPF Contributions for Self-Employed Persons
For a self-employed person (SEP), CPF contributions are voluntary, while Medisave contributions are compulsory.
Any self-employed persons who are Singapore Citizens or Permanent Residents and earn an annual Net Trade Income (NTI) of more than $6,000 would need to contribute to MediSave.
The MediSave contribution rates for SEPs are as follows:
| Net Trade Income (NTI) | Age as at 1 January | |||
|---|---|---|---|---|
| Below 35 years | 35 to below 45 years | 45 to below 50 years | 50 years and above | |
| Above $6,000 to $12,000 | 4.00% | 4.50% | 5.00% | 5.25% |
| Above $12,000 to $18,000 | Phased in** from 4.00% to 8.00% | Phased in** from 4.50% to 9.00% | Phased in** from 5.00% to 10.00% | Phased in** from 5.25% to 10.50% |
| Above $18,000 | 8.00% (Maximum $5,760) | 9.00% (Maximum $6,480) | 10.00% (Maximum $7,200) | 10.50% (Maximum $7,560) |
**Phase-in rates are calculated as such:
| Net Trade Income (NTI) | Age as at 1 January | |||
|---|---|---|---|---|
| Below 35 Years | 35 to below 45 years | 45 to below 50 years | 50 years and above | |
| % of NTI | % of NTI | % of NTI | % of NTI | |
| Above $12,000 to $18,000 | [[480+0.16(NTI -12,000)] x100 /NTI | [[540+0.18(NTI-12,000)] x100 /NTI | [[600+0.20(NTI-12,000)] x100 /NTI | [[630+0.21(NTI-12,000)] x100 /NTI |
Alternatively, you can use this Self-Employed MediSave Contribution Calculator to calculate the amount of MediSave you need to contribute.
CPF contributions to the other CPF accounts for self-employed persons can be done via the following methods:
- Cash top-ups to all three accounts (CPF OA, SA and MA)
- Transfer CPF OA to CPF SA or RA
- Cash top-ups via the Retirement Sum Topping-Up Scheme (RSTU).
CPF Contribution Cap and Max CPF Contribution
In addition, there is a cap on the CPF amount employers and employees can contribute.
There are mainly three CPF limits to take note of.
Ordinary Wage (OW) Ceiling
OW exclusively refers to employees’ wages in return for their employment in a month.
The OW ceiling is currently at $6,000 per month.
Additional Wage (AW) Ceiling
This is the compensation given to employees made at intervals of more than a month.
This would include your bonuses, commissions, allowances, leave pay, and other forms of compensation given at intervals of more than a month.
The AW ceiling is currently $102,000 – total OW subject to CPF for the year.
CPF Annual Limit
This is the maximum amount of mandatory and voluntary contributions CPF members can make to their Ordinary Accounts (OA), Special Accounts (SA) and Medisave Accounts (MA) in a calendar year.
The CPF Annual limit is currently $37,740.
These caps are applicable on a monthly basis for OW ceiling and a yearly basis for AW ceiling and CPF Annual Limit.
Got Any Questions About CPF?
Feeling lost about CPF?
Fret not!
You can get started with our very own Seedly’s Ultimate Guide to CPF.
Or if you do have any burning questions, just hop on over to get them answered!
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