CPF Account Types and Allocation

Each employee’s total CPF contributions are allocated across three accounts based on the employee’s age group. The allocation proportions shift as employees age — directing more towards retirement and healthcare in later years.

Note: For employees above 55, allocations shift — more goes into MediSave and less into OA. The Special Account is closed at 55 and balances are transferred to the Retirement Account (RA). From 65, a new MediSave-integrated account structure applies. Refer to CPF Board for current allocation tables by age.

Understanding Ordinary Wages vs Additional Wages

Correctly classifying wages as Ordinary Wages (OW) or Additional Wages (AW) is critical — they have different CPF ceilings and the wrong classification can result in under or over-contribution.

Permanent Resident Graduated CPF Rates

New PRs contribute at reduced rates in their first two years to ease the financial transition. From Year 3 onwards, full Singapore Citizen rates apply. The PR Year is calculated from the date the employee obtained PR status — not the date of joining the company.

The above rates apply to employees aged 55 and below. For older PR employees, the standard age-based rate reductions apply on top of the PR year structure. Note: Both employer and employee may jointly elect to contribute at full SC rates from Year 1 — this election must be made in writing.

Self-Help Group (SHG) Contributions

In addition to CPF, certain Singapore employees are required to contribute to their community Self-Help Group. These are small monthly deductions based on the employee’s ethnicity and salary level. The employer deducts this from the employee’s wages and remits it alongside the monthly CPF payment — the employer does not bear this cost.

CPF Submission — How It Works

• Submit CPF contributions via the CPF e-Submit@web portal or the CPF API by the 14th of each month for the preceding month’s wages
• Employers with 10 or more employees must submit electronically — paper submissions are not accepted
• The CPF submission file includes: employee NRIC, wages paid (OW and AW separately), CPF employee and employer amounts, SDL, and SHG deductions
• After submission, CPF Board issues a confirmation and direct debit payment is processed from the employer’s designated bank account
• CPF Board sends each employee an annual Statement of Account showing their cumulative CPF balance and allocation across OA, SA and MA
• Late submission: interest at 1.5% per month on outstanding CPF amounts. A late payment fee of S$12 per employee may also be imposed for persistent late submission.

Wages and Payments That Are NOT Subject to CPF

Not all payments to employees attract CPF contributions. The following categories are generally exempt — though employers should verify against CPF Board guidelines for their specific situation:

• Genuine reimbursements: Transport, meal, medical and accommodation claims that reimburse actual expenditure with no cash element retained by the employee
• Productivity Incentive Payments (PIP): Under CPF Board-approved PIP schemes
• Retirement and long-service gratuities: Paid upon bona fide retirement or completion of long service
• Retrenchment benefits: Ex gratia payments and retrenchment benefit packages
• Certain ad-hoc gifts: One-off festive gifts of a non-cash nature (cash gifts are generally subject to CPF)
• Training allowances: Allowances paid under approved training programmes where the individual is not classified as an employee

CPF Calculation Made Automatic