Central Provident Fund (CPF)

The CPF is Singapore's national pension scheme. Contributions are payable by Singapore citizens and Singapore Permanent Residents (i.e. SPR obtained via immigration rules) only.

Employers and employees contribute 17% and 20%, respectively, of ordinary monthly wages, up to an income ceiling of SGD 6,800. Their respective maximum contributions are therefore SGD 1,156 and SGD 1,360 per month. The rates are applicable to Singaporeans and SPRs (from third year and onwards) aged 55 years and below.

Reduced rates apply for employees who are earning less than SGD 750 per month as well as for those above 55 years of age, although these rates are being gradually increased.

The income ceiling will be increased to SGD 7,400 from 1 January 2025 and SGD 8,000 from 1 January 2026. The annual ordinary wage ceiling and maximum monthly contributions for employers and employees will be increased accordingly; however, the annual salary (comprising ordinary wages and additional wages) ceiling remains at SGD 102,000.

Foreign nationals and their employers are precluded from making CPF contributions. Foreign employees who become Singapore permanent residents, and their employers, may contribute at reduced rates for the first two years.

Supplementary Retirement Scheme (SRS)

The SRS is a voluntary scheme to encourage employees and the self-employed to save for retirement over and above their CPF savings. The maximum amount to be contributed is subject to an income cap of SGD 102,000.

Employers are allowed to contribute to their employees’ SRS accounts, subject to the contribution limits below. Employees will be taxable on these employer contributions but will be allowed corresponding tax relief.

The contribution rate caps for contributions made to the SRS scheme are as follows: