If you are a newly minted Singapore Permanent Resident (SPR) or an employer hiring one, take note.
Aside from all the perks you will enjoy as a newly minted SPR, like immigration and job stability and access to low-cost education and housing, you will get access to the Central Provident Fund (CPF).
Although you may feel the pinch of a lower take-home pay due to mandatory CPF contributions, you will actually be better off monetarily.
Why you may ask?
Read on to learn more about CPF fundamentals, contributions rates and more.
TL;DR: Comprehensive Singapore Permanent Resident (PR) CPF Guide
What CPF is for?
CPF is a social security system in Singapore managed by the CPF board.
Why Do We Have CPF?
According to a study on the financial planning attitudes of Singaporeans, about three out of ten, aged between 30 and 39, had not started planning for future financial needs!
We have CPF in place because it helps us set aside money for our retirement needs and reduces our nation’s risk of depending on a shrinking working population to support a growing number of elderly residents.
CPF, among other things, helps to maintain homeownership rates in Singapore, as these funds can be used to pay for home purchases.
Lastly, CPF helps us save for healthcare needs such as medical insurance, hospitalisation expenses, etc.
What Can I Use CPF For?
CPF contributions go into three accounts, but when you hit 55, the fourth account, the Retirement Account, is opened.
- Ordinary Account (OA): For housing, insurance, investment, and education
- Special Account (SA): For retirement income and retirement-related investments
- Medisave (MA): For hospitalisation expenses, approved outpatient medical care, and approved medical insurance
- Retirement Account (RA): For monthly retirement payouts
Why PRs Need CPF
CPF is Singapore’s compulsory social savings program designed to help Singapore Citizens (SC) and Singapore Permanent Residents (SPRs) ensure a secure retirement and cover essential costs like housing, children’s education, and medical expenses. Currently, CPF members can contribute up to 37% of their salaries to their CPF accounts as follows:
Upon completing the application process for your SPR status, Form 5/5A will inform you of your successful application. The date on the form marks the start of your PR status in Singapore.
If you are currently employed, this date also signifies when your employer must start making CPF contributions. Consequently, you will notice a significant portion of your salary being directed into your newly established CPF accounts, with up to 20% of your earnings contributed by you as an employee.
Adapting to an immediate reduction of up to 20% from your take-home pay may be painful. However, you will also benefit from an overall increase in your total salary due to employer CPF contributions, which can be as high as 17% of your salary. On the other hand, employers will face an additional cost of up to 17% for hiring the same employee.
Differences in CPF for PR vs Locals
Functionally, there is little to no difference in CPF for SCs and SPRs, except for the difference in contribution rates at the start.
There is a two-year acclimatization period for both employees and employers, during which CPF contribution rates start lower and gradually increase to the standard rates by the third year.
The first full year begins on the date of PR approval and concludes on the last day of the anniversary month of the PR approval. The second and third years follow this timeline, starting on the first day of the anniversary month of SPR approval.
For instance, if your PR status is approved on 6 June 2024, your first year of CPF contributions will commence on that date and end on 30 June 2025. The second year will begin on 1 July 2025 and end on 31 June 2026. Finally, standard CPF contributions will start from the third year, beginning 1 July 2026.
What Are the CPF Rates for PRs
If you are a new PR, both employers and employees contribute to CPF at a lower rate, known as the graduated employer/graduated employee (G/G) rate:
First-Year PR CPF Contribution Rate [Graduated Employee / Graduated Employer Rate (G/G)]
| CPF Contribution Rate Table from 1 January 2024 for Singapore Permanent Residents (SPR) during 1st year of SPR status under Graduated contribution rates (G/G) | |||
| 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 or less | Nil | Nil |
| > $50 to $500 | 4% (TW) | Nil | |
| > $500 to $750 | 4% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [9% (OW)]* + 9% (AW) * Max. of $612 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
|
Above 55 – 60
|
$50 or less | Nil | Nil |
| > $50 to $500 | 4% (TW) | Nil | |
| > $500 to $750 | 4% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [9% (OW)]* + 9% (AW) * Max. of $612 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
|
Above 60 – 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 3.5% (TW) | Nil | |
| > $500 to $750 | 3.5% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [8.5% (OW)]* + 8.5% (AW) * Max. of $578 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
|
Above 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 3.5% (TW) | Nil | |
| > $500 to $750 | 3.5% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [8.5% (OW)]* + 8.5% (AW) * Max. of $578 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
| Notes: For Private Sector / Non-Pensionable Employees (Statutory Bodies & Aided Schools) OW: Ordinary Wages (capped at OW Ceiling of $6,800) AW: Additional Wages TW: Total Wages = OW + AW Max: Maximum contribution on OW |
|||
| Steps to compute CPF contribution: 1) Compute the total CPF contribution (rounded to the nearest dollar), i.e., to be rounded down for an amount less than 50 cents and rounded up for an amount of 50 cents and above. 2) Compute the employee’s share of CPF contribution (rounded down to the nearest dollar). 3) Employer’s share = Total contribution – Employee’s share 4) If there is only OW payable for the month, the maximum contribution on OW is to be rounded to the nearest dollar for the total CPF contributions and rounded down to the nearest dollar for employee’s share of CPF contributions. If there are OW and AW payable for the same month, compute and sum up the CPF contributions that are payable for OW and AW and apply the rounding rules accordingly. 5) To compute CPF contributions, use the CPF contribution calculator (cpf.gov.sg/employer > Tools and services > Calculators > CPF contribution calculator). |
|||
Source: CPF
Second-Year PR CPF Contribution Rate [Graduated Employee / Graduated Employer Rate (G/G)]
| CPF Contribution Rate Table from 1 January 2024 for Singapore Permanent Residents (SPR) during 2nd year of SPR status under Graduated contribution rates (G/G) | |||
| 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 or less | Nil | Nil |
| > $50 to $500 | 9% (TW) | Nil | |
| > $500 to $750 | 9% (TW) + 0.45 (TW – $500) | 0.45 (TW – $500) | |
| > $750 | [24% (OW)]* + 24% (AW) * Max. of $1,632 |
[15% (OW)]* + 15% (AW) * Max. of $1,020 |
|
|
Above 55 – 60
|
$50 or less | Nil | Nil |
| > $50 to $500 | 6% (TW) | Nil | |
| > $500 to $750 | 6% (TW) + 0.375 (TW – $500) | 0.375 (TW – $500) | |
| > $750 | [18.5% (OW)]* + 18.5% (AW) * Max. of $1,258 |
[12.5% (OW)]* + 12.5% (AW) * Max. of $850 |
|
|
Above 60 – 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 3.5% (TW) | Nil | |
| > $500 to $750 | 3.5% (TW) + 0.225 (TW – $500) | 0.225 (TW – $500) | |
| > $750 | [11% (OW)]* + 11% (AW) * Max. of $748 |
[7.5% (OW)]* + 7.5% (AW) * Max. of $510 |
|
|
Above 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 3.5% (TW) | Nil | |
| > $500 to $750 | 3.5% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [8.5% (OW)]* + 8.5% (AW) * Max. of $578 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
Source: CPF
If your employer wants to contribute at a higher CPF rate for you, referred to as the full employer / graduated employee rate, both parties must submit a joint application.
First-Year PR CPF Contribution Rate [Full Employer / Graduated Employee Rate (F/G)]
| CPF Contribution Rate Table from 1 January 2024 for Singapore Permanent Residents (SPR) during 1st year of SPR status under Full Employer & Graduated Employee contribution rates (F/G) | |||
| 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 or less | Nil | Nil |
| > $50 to $500 | 17% (TW) | Nil | |
| > $500 to $750 | 17% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [22% (OW)]* + 22% (AW) *Max. of $1,496 |
[5% (OW)]* + 5% (AW) *Max. of $340 |
|
|
Above 55 – 60
|
$50 or less | Nil | Nil |
| > $50 to $500 | 15% (TW) | Nil | |
| > $500 to $750 | 15% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [20% (OW)]* + 20% (AW) *Max. of $1,360 |
[5% (OW)]* + 5% (AW) *Max. of $340 |
|
|
Above 60 – 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 11.5% (TW) | Nil | |
| > $500 to $750 | 11.5% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [16.5% (OW)]* + 16.5% (AW) * Max. of $1,122 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
|
Above 65 – 70
|
$50 or less | Nil | Nil |
| > $50 to $500 | 9% (TW) | Nil | |
| > $500 to $750 | 9% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [14% (OW)]* + 14% (AW) * Max. of $952 |
[5% (OW)]* + 5% (AW) *Max. of $340 |
|
|
Above 70
|
$50 or less | 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 $850 |
[5% (OW)]* + 5% (AW) *Max. of $340 |
|
Source: CPF
Second-Year PR CPF Contribution Rate [Full Employer / Graduated Employee Rate (F/G)]
| CPF Contribution Rate Table from 1 January 2024 for Singapore Permanent Residents (SPR) during 2nd year of SPR status under Full Employer & Graduated Employee contribution rates (F/G) | |||
| 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 or less | Nil | Nil |
| > $50 to $500 | 17% (TW) | Nil | |
| > $500 to $750 | 17% (TW) + 0.45 (TW – $500) | 0.45 (TW – $500) | |
| > $750 | [32% (OW)]* + 32% (AW) * Max. of $2,176 |
[15% (OW)]* + 15% (AW) * Max. of $1,020 |
|
|
Above 55 – 60
|
$50 or less | Nil | Nil |
| > $50 to $500 | 15% (TW) | Nil | |
| > $500 to $750 | 15% (TW) + 0.375 (TW – $500) | 0.375 (TW – $500) | |
| > $750 | [27.5% (OW)]* + 27.5% (AW) * Max. of $1,870 |
[12.5% (OW)]* + 12.5% (AW) * Max. of $850 |
|
|
Above 60 – 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 11.5% (TW) | Nil | |
| > $500 to $750 | 11.5% (TW) + 0.225 (TW – $500) | 0.225 (TW – $500) | |
| > $750 | [19% (OW)]* + 19% (AW) * Max. of $1,292 |
[7.5% (OW)]* + 7.5% (AW) * Max. of $510 |
|
|
Above 65 – 70
|
$50 or less | Nil | Nil |
| > $50 to $500 | 9% (TW) | Nil | |
| > $500 to $750 | 9% (TW) + 0.15 (TW – $500) | 0.15 (TW – $500) | |
| > $750 | [14% (OW)]* + 14% (AW) * Max. of $952 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
|
Above 70
|
$50 or less | 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 $850 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
Source: CPF
If you want to contribute at a higher CPF rate, referred to as the full employee/graduated employer rate (F/G), you can voluntarily top up your CPF through the Retirement Sum Top-Up Scheme (RSTU).
Suppose both you and your employer decide to contribute at a higher CPF rate, known as the full employee / full employer rate (F/F) from the first year. In that case, you will need to apply jointly for the full employer contribution and top up your CPF through the RSTU for the full employee contribution.
As previously mentioned, once you have fully transitioned by your third year, you will no longer be considered a newly initiated Permanent Resident. At this point, you will be required to pay the full contribution rate applicable to all PRs and Singapore Citizens.
Third-Year PR CPF Contribution Rate (F/F) / Full CPF Contribution Rate
| CPF Contribution Rate Table from 1 January 2024 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 or less | 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 $2,516 |
[20% (OW)]* + 20% (AW) * Max. of $1,360 |
|
|
Above 55 – 60
|
$50 or less | Nil | Nil |
| > $50 to $500 | 15% (TW) | Nil | |
| > $500 to $750 | 15% (TW) + 0.48 (TW – $500) | 0.48 (TW – $500) | |
| > $750 | [31% (OW)]* + 31% (AW) * Max. of $2,108 |
[16% (OW)]* + 16% (AW) * Max. of $1,088 |
|
|
Above 60 – 65
|
$50 or less | Nil | Nil |
| > $50 to $500 | 11.5% (TW) | Nil | |
| > $500 to $750 | 11.5% (TW) + 0.315 (TW – $500) | 0.315 (TW – $500) | |
| > $750 | [22% (OW)]* + 22% (AW) *Max. of $1,496 |
[10.5% (OW)]* + 10.5% (AW) * Max. of $714 |
|
|
Above 65 – 70
|
$50 or less | Nil | Nil |
| > $50 to $500 | 9% (TW) | Nil | |
| > $500 to $750 | 9% (TW) + 0.225 (TW – $500) | 0.225 (TW – $500) | |
| > $750 | [16.5% (OW)]* + 16.5% (AW) * Max. of $1,122 |
[7.5% (OW)]* + 7.5% (AW) * Max. of $510 |
|
|
Above 70
|
$50 or less | 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 $850 |
[5% (OW)]* + 5% (AW) * Max. of $340 |
|
Source: CPF
Any Way to Reduce CPF Contribution?
Unfortunately, as a Singapore Citizen or permanent Resident, you cannot legally reduce your CPF contributions.
But do note that there is a cap on the CPF amount employers and employees can contribute. You can read about it here:
CPF Calculator
If you were wondering, you could use this calculator from CPF to calculate the monthly CPF contributions applicable for employees in the private sector and for government employees who are not eligible for pensions:
What if I Want to Renounce my PR Status?
If you intend to permanently leave Singapore and West Malaysia and give up your PR status, you can apply to the CPF Board to withdraw your savings. This application can be submitted either by post or in person.
Upon approval, your funds will be transferred via interbank GIRO to your Singapore bank account or an overseas bank account. Be aware that any outstanding tax liabilities will be deducted from your CPF savings before the withdrawal.
If you have investments under the CPF Investment Scheme (CPFIS), your CPFIS Account will be closed, and the investments will be transferred to your Central Depository (CDP) account and liquidated.
You have the option to terminate your CPF LIFE plan and receive the remaining unused premiums or continue in the CPF LIFE Scheme to receive monthly payouts to your Singapore bank account.
If you miss Singapore and decide to return and regain your PR status, you must refund the full amount withdrawn, including accrued interest, to CPF.
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