Singapore’s Central Provident Fund (CPF) is a savings scheme that helps residents save for their retirement, healthcare, and housing needs. Every month, both employees and employers contribute a percentage of the employee’s salary to their CPF accounts. This contribution rate is determined based on the employee’s age and salary, with higher rates for older employees and a cap on the amount of CPF that can be contributed. By understanding the CPF contribution rates, individuals can better plan for their retirement and financial stability in the future.
The CPF contribution rates for retirement in Singapore are divided into three main categories: Ordinary Wage (OW), Additional Wage (AW), and Medisave. The OW and AW rates are based on the employee’s monthly salary, while the Medisave rate is a flat percentage for all employees. For OW, the contribution rate ranges from 17% for employees below 35 years old, to 37% for employees aged 55 and above. For AW, the rate ranges from 17% to 37.5% for the same age groups. As for the Medisave rate, it is currently set at 8% for all employees.
It is also important to note that there is a salary ceiling for CPF contributions, which is currently set at $6,000. This means that any amount earned above $6,000 will not be subject to