Singapore's Central Provident Fund (CPF) is the cornerstone of the country's social security system — a mandatory savings and contributions scheme that most expats encounter for the first time on their payslip with a mix of confusion and mild alarm.
Who Pays CPF?
CPF applies to Singapore Citizens and Permanent Residents (PRs) employed in Singapore. Foreign nationals on Employment Pass, S Pass, or other work visas are explicitly exempt from CPF. This is one of Singapore's most expat-friendly features: if you hold a work pass rather than PR status, you have no mandatory CPF obligation.
If you later obtain PR status, CPF kicks in immediately — and the rates are significant.
CPF Rates for 2026 (Employees Age 55 and Below)
The Ordinary Wage (OW) ceiling caps CPF contributions at SGD 6,000 per month (SGD 72,000/year). Above that ceiling, no CPF is due on the excess — a crucial fact for higher earners.
The Annual Bonus Cap
There is also an Additional Wage (AW) ceiling: SGD 102,000 minus total OW on which CPF was already contributed. For someone earning SGD 72,000 in ordinary wages, the AW ceiling is SGD 30,000. Bonuses above that are CPF-free.
Running the Numbers: SGD 200,000 Total Compensation
Assume SGD 162,000 base salary + SGD 38,000 annual bonus.
Employee CPF breakdown
Where Does Your CPF Money Go?
CPF contributions are split across three accounts
The money is not lost — it is yours and earns guaranteed interest. But it is locked until age 55 for most withdrawal purposes, and permanent departure from Singapore only allows withdrawal of OA and SA balances (not MA).
Should This Change Your Decision?
For most expats on Employment Pass, CPF is irrelevant — you are exempt. Singapore's income tax, while not zero, is one of the lowest among developed nations, with a top rate of 22% that only kicks in above SGD 320,000.
For those considering PR, the CPF equation becomes part of the trade-off: higher contributions, but access to subsidised HDB housing, cheaper healthcare premiums, and the ability to eventually withdraw the funds.
Use our calculator to model your Singapore take-home under both expat (no CPF) and PR (with CPF) scenarios and compare against other Asia-Pacific hubs.