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CPF contributions

CPF is an authority in Singapore which ensures the financial stability of employees of registered companies in the country. CPF ensures that employers pay both the company’s and the employee’s share of the contribution to the fund as long as the employee earns over $50 a month.

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Who is entitled to CPF contributions in Singapore and How It Works?

Central Provident Fund – CPF is an authority in Singapore which ensures the financial stability of employees of registered companies in the country. CPF ensures that employers pay both the company’s and the employee’s share of the contribution to the fund as long as the employee earns over $50 a month. All the Singapore citizens and the permanent residents who work in Singapore are covered through this Fund. However, foreign workers who are working for a Singapore based company through a work permit are not allowed to enter the CPF scheme.


How does CPF contribution calculated?

The amount that you will be contributing to the CPF is calculated taking two things under consideration – your age and the amount of your salary + other incomes. If you are age 55 or below, the basic percentage of your wage contributed by the employer will be 17%, while you contribute 20%. Altogether a 37% of your salary will be contributed for the fund. Once you are over the age 55, these percentages decrease.

Every month when the contributions are made by your employer to the Fund, they are distributed to three separate CPF accounts under your name including,

  • Ordinary Account (OA)
  • Special Account (SA)
  • Medisave Account (MA)

Once you are over 55 of age, your CPF fund rates from your wage will decrease, however, the share for your Medisave Account will accordingly increase to meet any of the healthcare needs that you might need to cover as a senior citizen.

Important things to know

What if you are an employee in more than one company?

Given that you have completed the working hours which are allocated to you through a company, it is possible for someone to work for more than one company. This especially happens if you are a consultant in a certain field. If you are working for more than one company and earn a wage that is more than the usual Original Wage Ceiling specified by CPF, you can make a request to reduce your own contributions to the Fund. Your employer, however, has to pay the same rates for applicable considering your age and the amount of your salary.

Evaluating your Statements

While your employer is legally bound to pay their share of the Fund continuously, it is always a good habit to check your statements monthly in order to see if it is done properly. Check if the contribution amount that they have done is correct, and the deduction fees mentioned on your play slip are in accordance to the CPF rules.


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