Contributions from employees like the Central Provident Fund (CPF) are obligations in Singapore’s employment system. All the employers in Singapore are responsible for ensuring timely and accurate contributions to support their employees’ long-term financial security.
A proper planning can only be initiated when you have enough information in the first place, as it only would enable contributors to know the options and difference between to invest accordingly and wisely.
This guide has been designed to help you explore everything you must know about fulfilling your CPF responsibilities as required by labour laws. I have mentioned seven essential tips to keep your CPF contributions on track and in compliance always;
Also Read: A Step-by-Step Guide to singapore cpf contribution 2025
- Know Your CPF Allocation
CPF contributions are divided into three main accounts:
- Ordinary Account (OA) – Housing, insurance, investment, and education
- Special Account (SA) – Retirement savings and investments
- Medisave Account (MA) – Healthcare expenses
Know how funds are being allocated, helping you make informed financial decisions.
- Top Up Your CPF for Tax Relief
Voluntary top-ups to employer’s Special Account (SA) (for those under 55) or Retirement Account (RA) (for those 55 and above) provide tax relief of up to $8,000 per year.
- Maximize Interest Rates
CPF accounts offer attractive interest rates;
- OA: Up to 3.5% p.a.
- SA & MA: Up to 5% p.a.
- RA: Up to 6% p.a.
If you are updated and keep more funds in your SA and RA, you can enjoy higher compounded interest over time.
- Leverage CPF Investment Scheme (CPFIS)
You can invest your OA and SA funds in unit trusts, bonds, ETFs, and more. However, CPF’s base interest rates are already competitive, it’s advised to invest by understanding relative differences in options to mitigate risks.
- Plan for CPF LIFE Payouts
Employees in Singapore are automatically enrolled in CPF LIFE at age 55 which ensures lifelong monthly payouts. Choosing the right plan from the options, Standard, Basic, or Escalating, helps you manage your retirement cash flow effectively.
- Use CPF for Housing Wisely
While CPF OA can fund housing, withdrawing frequently could also reduce your retirement savings. Consider maintaining a balance between cash and CPF payments for your mortgage.
- Monitor Your CPF Contributions & Withdrawals
Regularly monitor your CPF statements via myCPF online, ensuring only accurate contributions and track withdrawals. Check notifications on any policy changes to plan accordingly to maximize CPF benefits.
CPF Contribution Rates
The percentage an employee contributes to CPF depends on their gross monthly wage. Employers match this same percentage with their corresponding share. Below table provides an overview of the current allocation percentages across age groups (monthly income>$750);
| Age Group | Employer’s Share (%) | Employee’s Share (%) | Total Contribution (%) |
| 55 years or below | 17 | 20 | 37% |
| Above 55 to 60 years | 15 | 16 | 31% |
| Above 60 to 65 years | 11.5 | 10.5 | 22% |
| Above 65 to 70 years | 9 | 7.5 | 16.5% |
| Above 70 | 7.5 | 5 | 12.5% |
Also Read: HRIS Software | All-In- One HR Platform
Conclusion
Monitor periodically, check the contributions being routed to the desired place, this will help you know the real time status of your CPF contributions. Check for any lags or missing reports from your employer. To manage your CPF contributions strategically, you can definitely form a secure future with optimized savings.
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