A guide to Central Provident Fund (CPF) contributions in SG

The Central Provident Fund (CPF) is the name for Singapore’s social security scheme. It covers health care, retirement and home ownership.

The Central Provident Fund (CPF) is Singapore’s national social security system, designed to support individuals in healthcare, retirement planning and home ownership.

CPF contribution rates differ based on factors such as age, income level and employment status, including whether an employee is a Singapore citizen or Permanent Resident. The CPF monthly salary ceiling has been raised from $7,400 to $8,000 on 1 January 2026. In addition to compulsory contributions, individuals may also make voluntary CPF contributions. The CPF annual salary ceiling will remain unchanged at $102,000.

The employee’s share of CPF contribution is deducted from their salary by the employer during the monthly payroll processing. Contributions payable are determined based on the employee’s actual monthly wages, age and residency status. The employer is then required to pay the employer’s and employee’s share of CPF contributions monthly for all employees (Singapore citizens and Singapore PRs) at the rates set out in the CPF Act.

This is why many businesses choose payroll outsourcing services in Singapore to ensure accurate CPF computation and timely submissions.

CPF contributions are not allowed foreigners working in Singapore under an EP, S Pass or a Work Permit.

How is the Central Provident Fund contribution calculated?

For the purpose of CPF, wages are classified into two categories.

Ordinary Wages

Ordinary Wages (OW) refers to the basic salary earned in the month. The CPF contribution on OW is currently capped at $8,000 a month.

Additional Wages

Additional Wages (AW) refers to bonuses and other variable components earned. The CPF contribution on AW is capped based on the following computation:

AW subject to CPF = Total Wages – OW subject to CPF

Total wages are capped at $102,000 a year

For example, an employee earning $10,000 a month with an annual bonus of $50,000 will contribute CPF based on the following capping:

OW: CPF will be contributed based on the cap of $8,000 on a monthly basis.

AW: AW subject to CPF =$102,000 – OW subject to CPF for the year

= $102,000 – ($8,000 x 12 months)

= $6,000

AW CPF will be contributed based on the cap of $6,000.

Employment Act to cover all employees

Core provisions of the Employment Act were updated effective 1 April 2019 to cover all employees. Prior to this, Managers and Executives earning up to $4,500 were excluded from these core provisions. With this change, all employees are now entitled to paid annual leave, paid public holidays and sick leave.

Overtime rates for non-workmen

Non-workmen earning up to $2,600 are entitled to overtime pay and are covered under Part IV provisions of the Employment Act. This section of the Act provides for hours of work, rest day and overtime payments to eligible employees.

Managers and executives continue to be excluded from Part IV provisions.

CPF Treatment of employee benefits

Effective 1 January 2020, the CPF treatment for the reimbursement of employee benefits have been revised as follows:

Reimbursements for medical and dental benefits (incurred for both local and overseas) for employees, employee’s spouse and children are not CPF contributable.
Reimbursements for holiday benefits for employees, employee’s spouse and children are CPF contributable.

	Employee	Employee's spouse & child
Medical treatment reimbursement	Not CPF Payable	Not CPF Payable
Dental treatment reimbursement	Not CPF Payable	Not CPF Payable*
Holiday benefits reimbursement	CPF Payable*	CPF Payable
Other benefits reimbursement	CPF Payable	CPF Payable