If you are working in Singapore
on an Employment Pass or S Pass,
one of the first financial concepts
you need to understand is the
Central Provident Fund — commonly
known as CPF.
CPF is Singapore's mandatory
social security savings scheme.
Both you and your employer
contribute a percentage of
your monthly salary to your
CPF accounts every month.
Over time these contributions
accumulate into a significant
pool of savings that can be
used for housing, healthcare
and retirement.
Understanding how CPF works
is essential for financial
planning as an expat in Singapore.
This complete guide covers
everything you need to know
about CPF in 2026 — from
contribution rates to how
you can use your CPF savings
and what happens when you
leave Singapore.
Before reading this guide,
you may also want to check
our article on
how to open a DBS bank account in Singapore as your
CPF contributions will be
closely linked to your
Singapore banking arrangements.
Who Must Contribute to CPF in Singapore?
CPF contributions are mandatory
for Singapore Citizens and
Permanent Residents (PRs)
who are employed in Singapore.
Employment Pass holders:
If you hold an Employment Pass,
you are NOT required to
contribute to CPF. This is
one of the key differences
between holding an EP and
being a Singapore PR.
S Pass holders:
S Pass holders are also NOT
required to contribute to CPF.
However their employers must
pay a Foreign Worker Levy.
Work Permit holders:
Work Permit holders are NOT
required to contribute to CPF.
Singapore PRs:
Once you become a Singapore PR,
both you and your employer
must start contributing to CPF.
This means that if you are
currently on an Employment Pass
or S Pass, you will only
start contributing to CPF
if and when you obtain
Singapore Permanent Residence.
CPF Contribution Rates in Singapore 2026
CPF contribution rates depend
on your age and are split
between employee and employer contributions.
For employees aged 55 and below:
Total contribution: 37% of monthly wage
Employee contribution: 20%
(deducted from your salary)
Employer contribution: 17%
(paid by your employer on top of your salary)
For employees aged 55 to 60:
Total contribution: 29.5%
Employee contribution: 15%
Employer contribution: 14.5%
For employees aged 60 to 65:
Total contribution: 20.5%
Employee contribution: 9.5%
Employer contribution: 11%
For employees aged 65 and above:
Total contribution: 15.5%
Employee contribution: 7%
Employer contribution: 8.5%
CPF contributions apply on
monthly wages up to SGD 6,800
(Ordinary Wage ceiling).
Wages above this amount
are not subject to CPF contributions.
This means the maximum monthly
CPF contribution for an employee
aged 55 and below is:
Employee: SGD 6,800 x 20% = SGD 1,360
Employer: SGD 6,800 x 17% = SGD 1,156
Total: SGD 2,516 per month
CPF Accounts Explained
Your CPF savings are split
across three main accounts,
each serving a different purpose.
Ordinary Account (OA)
The Ordinary Account is the
most flexible CPF account.
It earns a base interest rate
of 2.5% per annum and can
be used for:
Purchasing residential property
Paying for housing loan repayments
Investment through the CPF
Investment Scheme (CPFIS)
Paying for education fees
Insurance premiums
Allocation of monthly contributions (age below 35):
Ordinary Account: 23% of wages
Special Account: 6% of wages
MediSave Account: 8% of wages
Special Account (SA)
The Special Account earns
a higher interest rate of
4% per annum and is primarily
for retirement purposes.
Withdrawals from the SA
are more restricted than
the OA. The SA can be
used for approved retirement
investments.
MediSave Account (MA)
The MediSave Account earns
4% per annum and is specifically
for healthcare expenses.
It can be used to pay for:
Hospitalisation and day surgery
Approved outpatient treatments
MediShield Life premiums
CareShield Life premiums
Approved medical insurance premiums
Retirement Account (RA)
The Retirement Account is
created automatically when
you turn 55 years old.
At this point, savings
from your OA and SA are
transferred to your RA
to meet the Full Retirement Sum.
CPF Interest Rates 2026
One of the most attractive
features of CPF is the
guaranteed interest rates
that are significantly
higher than most bank
savings accounts.
Ordinary Account: 2.5% per annum
Special Account: 4% per annum
MediSave Account: 4% per annum
Retirement Account: 4% per annum
Additional interest:
The first SGD 60,000 of combined
CPF balances earns an extra 1%
interest per annum.
Members below 55 years old
earn an extra 1% on the first
SGD 20,000 in their OA.
This means that for many CPF
members, the effective interest
rate on their CPF savings
is significantly higher than
the base rates suggest.
Using CPF for Housing in Singapore
One of the most significant
benefits of CPF for Singapore
PRs is the ability to use
Ordinary Account savings
to purchase property.
Buying an HDB Flat with CPF
Singapore PRs can use their
OA savings to purchase
an HDB resale flat. This is
one of the most powerful
benefits of PR status as
HDB flats are significantly
more affordable than private
condominiums.
CPF can be used to:
Pay the down payment
for an HDB flat
Repay the HDB housing loan
Pay stamp duties
Read our guide on
renting and housing options in Singapore for more
context on the Singapore
property market.
Buying Private Property with CPF
CPF OA savings can also be
used to purchase private
residential property subject
to certain conditions and
limits depending on the
remaining lease of the property.
Using CPF for Healthcare
Your MediSave Account is
specifically designed to
help with healthcare costs
which can be very high
in Singapore without insurance.
MediSave can be used to pay for:
Hospital and surgical bills
Approved outpatient treatments
for chronic conditions
MediShield Life premiums
(Singapore's national health insurance)
Approved Integrated Shield Plan premiums
We strongly recommend reading
our detailed guide on
health insurance for expats in Singapore to understand
how MediSave interacts with
private health insurance.
CPF Investment Scheme
Once your Ordinary Account
balance exceeds SGD 20,000
and your Special Account
balance exceeds SGD 40,000,
you can invest the excess
amounts through the CPF
Investment Scheme (CPFIS).
Approved CPFIS investments include:
Unit trusts and investment funds
Singapore government bonds
and treasury bills
Endowment insurance policies
Singapore shares on the
Singapore Exchange (SGX)
Gold and gold-related products
The CPFIS gives you the
opportunity to potentially
earn higher returns than
the base CPF interest rates.
However it also comes with
investment risk so it is
important to carefully
consider whether investing
your CPF savings is right
for your financial situation.
What Happens to Your CPF When You Leave Singapore?
This is one of the most
important questions for
expats who have become
Singapore PRs and accumulated
CPF savings.
Withdrawing CPF When Leaving Singapore Permanently
If you are a Singapore PR
who is leaving Singapore
permanently and renouncing
your PR status, you can
apply to withdraw all your
CPF savings.
To be eligible for full withdrawal:
You must be a Singapore PR
(not a citizen)
You must be leaving Singapore
permanently
You must renounce your PR status
The withdrawal includes
your OA, SA and MA balances.
However note that if you
have used CPF for property
purchases, the amount used
plus accrued interest must
be refunded to your CPF
account when the property
is sold.
CPF Withdrawal at Age 55
When you turn 55, you can
withdraw savings above
the Full Retirement Sum
from your CPF accounts.
The Full Retirement Sum
in 2026 is SGD 205,800.
CPF LIFE
CPF LIFE (Lifelong Income
For the Elderly) is Singapore's
national annuity scheme.
At age 65, your Retirement
Account savings are automatically
used to join CPF LIFE which
provides monthly payouts
for life.
Tips for Expats Managing CPF in Singapore
Check your CPF balance regularly
through the CPF Online Services
portal or the CPF mobile app.
Understanding exactly how much
you have in each account
helps with financial planning.
Consider voluntary top-ups
to your Special Account.
Voluntary top-ups to your SA
earn 4% per annum tax-free
and reduce your taxable income.
This can be a very tax-efficient
savings strategy for high-income
Singapore PRs.
Use your MediSave for approved
insurance premiums. Many
Integrated Shield Plan premiums
can be paid with MediSave which
reduces your out-of-pocket
healthcare costs.
Understand the CPF withdrawal
rules before making any
property purchase decisions.
Using CPF for property
creates obligations when
you sell the property
that can significantly
affect your finances.
Frequently Asked Questions
Do Employment Pass holders need to contribute to CPF?
No. Employment Pass holders
are not required to contribute
to CPF. CPF contributions
only become mandatory when
you obtain Singapore PR status.
Can I use CPF to invest in overseas property?
No. CPF savings can only
be used for residential
property in Singapore.
You cannot use CPF to
purchase overseas property.
What is the CPF Annual Limit?
The CPF Annual Limit is
the maximum total CPF
contributions that can
be made in a calendar year.
In 2026 the limit is
SGD 37,740 per year
(inclusive of both employee
and employer contributions).
Can my employer contribute more than the mandatory CPF rate?
Yes, employers can make
additional voluntary contributions
to your CPF accounts above
the mandatory rates. However
the total contributions
cannot exceed the CPF
Annual Limit.
Useful Resources
CPF Board Singapore:
cpf.gov.sg
CPF Online Services:
CPF Member Portal
CPF Contribution Calculator:
CPF Contribution Calculator
Ministry of Manpower Singapore:
mom.gov.sg
Final Thoughts
CPF is one of the most unique
and powerful aspects of
Singapore's financial system.
For Singapore PRs, it provides
a guaranteed, government-backed
savings vehicle with interest
rates that far exceed typical
bank savings accounts.
If you are considering applying
for Singapore PR, the CPF
benefits — particularly the
ability to use savings for
housing and the guaranteed
retirement payouts — are
a significant part of the
financial case for making
Singapore your long-term home.
Understanding CPF thoroughly
helps you make smarter
financial decisions during
your time in Singapore
and ensures you maximize
the value of every dollar
contributed to your accounts.
Have questions about CPF
in Singapore? Leave a comment
below and we will be happy
to help you navigate
Singapore's social security
system!
Comments
Post a Comment