1. What is CPF?

The Central Provident Fund (CPF) is a comprehensive social security savings plan for working Singaporeans and permanent residents. Both employees and employers make monthly contributions to the fund.

2. How Does CPF Calculation Work?

The calculator uses the standard CPF contribution rates:

Where:

• Employee contributes 20% of monthly salary
• Employer contributes 17% of monthly salary
• Total CPF contribution is 37% of monthly salary

Explanation: These rates apply to Singaporean citizens and permanent residents below age 55, earning more than SGD 50 per month.

3. Importance of CPF Contributions

Details: CPF savings provide for retirement, healthcare, and housing needs. The funds are allocated to different accounts: Ordinary Account (OA), Special Account (SA), and Medisave Account (MA).

4. Using the Calculator

Tips: Enter your monthly salary in SGD. The calculator will compute both employee and employer contributions based on standard CPF rates.

5. Frequently Asked Questions (FAQ)

Q1: Do CPF rates change with age?
A: Yes, CPF contribution rates are reduced for older workers. The rates shown here are for workers below age 55.

Q2: Is there a salary ceiling for CPF contributions?
A: Yes, CPF contributions are only required on the first SGD 6,000 of monthly salary (for 2023).

Q3: How are CPF contributions allocated?
A: Contributions are allocated to Ordinary Account (for housing, investment, education), Special Account (for retirement), and Medisave Account (for healthcare).

Q4: Are CPF contributions tax-deductible?
A: Employee CPF contributions are tax-deductible. Employer CPF contributions are business expenses.

Q5: Can I withdraw my CPF savings?
A: CPF savings are generally preserved for retirement, but partial withdrawals are allowed for specific purposes like housing and healthcare.