Concept
The Central Provident Fund (CPF) is Singapore's mandatory social-savings scheme: employer and employee both pay a percentage of wages into the employee's CPF accounts every month, funding retirement, healthcare and housing. It applies to Singapore citizens and Permanent Residents — and deliberately not to foreign work-pass holders, which is why it sits at the centre of every salary comparison between a local hire and an expatriate package.
Who Is In, Who Is Out
- In: Singapore citizens and Permanent Residents employed in Singapore. Both sides contribute — the employer's share is on top of the wage, the employee's share is deducted from it.
- PRs in their first two years: graduated (lower) rates apply in the year of obtaining PR and the following year — the full rates apply from the third year (verify the graduated schedule at cpf.gov.sg).
- Out: foreigners on work passes (EP, S Pass, Work Permit) — no CPF on either side. This is a real cost difference between a local and an expatriate hire, not a paperwork detail.
- Self-employed: no employer-employee CPF; MediSave contributions apply to self-employed citizens and PRs above an income threshold (verify current rules at cpf.gov.sg).
The 2026 Rates by Age Band
Rates from 1 January 2026, for monthly wages above S$750 (CPF Board schedule; the senior-worker increase was announced in the MOM COS 2025 factsheet, read 2026-08-19 at mom.gov.sg; the age band changes from the month after the employee's birthday month, per AskGov/CPF):
| Age band | Employee share | Employer share | Total |
|---|---|---|---|
| 55 and below | 20% | 17% | 37% |
| Above 55 to 60 years | 18% | 16% | 34% |
| Above 60 to 65 years | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 7.5% | 9% | 16.5% |
| Above 70 years | 5% | 7.5% | 12.5% |
- Ceilings: the Ordinary Wage ceiling is S$8,000 per month from 1 January 2026 (the final step of the phased increase announced in Budget 2023); an annual salary ceiling of S$102,000 caps total CPF-liable wages.
- Accounts: contributions are allocated across the Ordinary, Special, MediSave and (from 55) Retirement accounts; the Special Account closed for members aged 55+ from early 2025 (MOF Budget 2024, Annex F-1 — verified at mof.gov.sg), and the 2026 senior-rate increase is allocated fully to the Retirement Account (MOM COS 2025 factsheet).
Leaving Singapore
A foreigner who never contributed has no CPF position at all — there is nothing to close or withdraw. For citizens and PRs the money does not travel: balances remain in CPF and continue to earn interest. Withdrawal on leaving is the exception, not the rule: permanent departure with renunciation of PR (or citizenship) opens an application to close the account and withdraw; otherwise the ordinary rules apply — withdrawal rights from age 55 subject to the retirement sums, and CPF LIFE payouts later (verify the current withdrawal-on-departure mechanics at cpf.gov.sg).
Q/A
Do foreigners on an EP pay CPF?
No. CPF covers Singapore citizens and Permanent Residents only; Employment Pass, S Pass and Work Permit holders are outside it, and their employers pay no CPF for them. The expatriate package replaces it with contractual benefits — which is precisely why total-cost comparisons must add the employer CPF share to a local hire's salary.
What happens to CPF when leaving Singapore?
Depends on status. A foreign employee: nothing — no contributions were ever made. A citizen or PR who leaves: balances stay in CPF under the ordinary withdrawal rules (from 55, against the retirement sums). A person who renounces PR or citizenship on permanent departure can apply to close the account and withdraw — mechanics and current conditions at cpf.gov.sg (verify).
How much do employers and employees contribute?
From 1 January 2026, for employees aged 55 and below on wages above S$750 a month: 20% employee + 17% employer = 37% of ordinary wages up to S$8,000 a month. The rates taper by age band down to 5% + 7.5% above 70 (CPF Board schedule; 2026 senior increase per MOM COS 2025 factsheet — verified 2026-08-19).
*Reviewed: 2026-08-19 · Sources: MOM — COS 2025 Factsheet on Senior Employment (2026 CPF rate increase); MOF — Budget 2024 Annex F-1 (SA closure, retirement sums); AskGov/CPF Board answer on age-band timing (ask.gov.sg); CPF Board — cpf.gov.sg (rates schedule; graduated PR rates and departure-withdrawal mechanics — verify).*
Cite as: wiki.private.law — "CPF in Singapore: Who Contributes, the 2026 Rates, and What Happens When You Leave", https://wiki.private.law/en/singapore-cpf (reviewed 2026-08-19).
Sources
- Ministry of Manpower — COS 2025 Factsheet on Senior Employment Announcements (read 2026-08-19)
- Ministry of Finance — Budget 2024 Annex F-1 (CPF system adjustments) (read 2026-08-19)
- AskGov — CPF contribution rate age-band timing; CPF Board — cpf.gov.sg (rates, PR graduation, departure mechanics — verify current details)