Home
Back
CPF Contribution Formula:
| From: | To: |
CPF (Central Provident Fund) Contribution is a mandatory savings scheme in Singapore where both employees and employers contribute a percentage of the employee's salary to fund retirement, healthcare, and housing needs.
The calculator uses the CPF contribution formula:
Where:
Explanation: The calculation multiplies the salary amount by the contribution rate percentage to determine the total CPF contribution amount.
Details: Accurate CPF calculation is crucial for financial planning, retirement preparation, and ensuring compliance with Singapore's mandatory savings requirements for both employees and employers.
Tips: Enter your monthly salary in SGD and the contribution rate percentage. The default rate is set to 20% (combined employee and employer contribution), but you can adjust this if needed.
Q1: What is the standard CPF contribution rate?
A: The standard total CPF contribution rate is 20% of wages for employees aged 55 and below, with both employee and employer contributing portions of this amount.
Q2: Are there different contribution rates for different age groups?
A: Yes, CPF contribution rates vary by age group, with lower rates for older employees. This calculator uses the standard 20% rate but can be adjusted.
Q3: Is there a salary ceiling for CPF contributions?
A: Yes, CPF contributions are subject to a monthly salary ceiling of $6,300 (for 2023). Contributions are only required on salary up to this amount.
Q4: How is the CPF contribution split between accounts?
A: CPF contributions are allocated to different accounts: Ordinary Account (OA), Special Account (SA), and Medisave Account (MA), with percentages varying by age.
Q5: Can I use this calculator for self-employed persons?
A: No, this calculator is designed for employee-employer contributions. Self-employed persons have different CPF contribution rules and rates.