WahLiao reference desk · Researched guide · Sources checked 29 September 2026. General information, not individual financial or tax advice. Examples are calculations or identified CPF Board illustrations, not personal account records.
CPF is Singapore’s social security savings system for retirement, housing and healthcare. For an employee, contributions depend on citizenship or permanent-resident status, age, wages and the applicable ceilings. The familiar 37% is a combined employee-and-employer rate for a particular group, not a deduction of 37% from everyone’s salary. MOM’s CPF overview explains the system’s purpose; the detailed rules below come from CPF Board and IRAS.
The simplest way to read CPF is to ask three questions: which account holds the money, what use is permitted, and which age or date changes the rule? Your total balance is not the same as cash available today. A housing balance, a retirement top-up and a monthly payout can all be yours while having very different conditions.
Go to the accounts · contributions · salary and bonus ceilings · interest · age 55 and retirement sums · CPF LIFE · MediSave · housing refunds · top-ups and tax relief · your next check.
What are the CPF accounts for?
| Account | Main role | Important distinction |
|---|---|---|
| Ordinary Account (OA) | Retirement savings that can also support approved housing and other permitted uses. | An OA balance is not unrestricted spending money at every age. |
| Special Account (SA) | Retirement savings before age 55. | It does not remain a separate account after the current age-55 transition. |
| MediSave Account (MA) | Approved healthcare expenses and medical-insurance uses, subject to rules and limits. | It is savings, not an insurance policy or a general cash account. |
| Retirement Account (RA) | Created at age 55 to support retirement payouts. | Creating the account is not the same as starting monthly payouts. |
The account purposes are set out in the official overview. The SA closure for members aged 55 and above took effect on 19 January 2025; members subsequently reaching 55 have their SA closed at that milestone. The CPF Board announcement explains where those savings move. Older articles describing an indefinitely retained SA after 55 should not be used as current instructions.
Read the accounts as different permissions attached to savings. That is why “I have enough in CPF” is not yet a complete answer to “Can I pay this bill?” First identify the relevant scheme, then the usable amount, then the conditions. Do not assume one account’s rules apply to another.
How much of your salary goes into CPF?
The following rates apply in 2026 to Singapore citizens and permanent residents from their third year of PR status, with monthly wages above S$750. They are percentages of wages subject to CPF, after applying the relevant ceilings. Source: CPF Board’s 2026 rate table.
| Employee’s age | Employer share | Employee share | Combined |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Lower wage bands have different calculations. First- and second-year PRs generally use graduated tables, with options to apply jointly for higher rates. An age-band change applies from the first day of the month after the relevant birthday, not from the beginning of the birthday year. Use CPF Board’s contribution guide and calculator for the actual payslip, including rounding.
A S$5,000 salary example
Assume an employee aged 30, a Singapore citizen, earns S$5,000 in Ordinary Wages for the month, with no bonus or other deduction in this illustration. The employee share is S$5,000 × 20% = S$1,000. The employer adds S$5,000 × 17% = S$850. Combined CPF contributions are S$1,850, while salary after the employee CPF deduction is S$4,000 before any other deductions.
The employer’s S$850 is additional to that stated salary; it is not a second deduction from the S$4,000. The combined contribution is then allocated among accounts under the applicable allocation rules. This example illustrates the distinction between gross salary, take-home salary and employer contribution; it is not a record of anyone’s employment.
What has been announced for 2027?
For wages earned from 1 January 2027, the combined rate for employees above 55 to 60 becomes 35.5%: 16.5% employer and 19% employee. For those above 60 to 65 it becomes 26%: 13% each. These are the announced full-rate figures for wages above S$750, not the rates to apply to September 2026 wages. Other age groups in the table remain unchanged under that announcement. See the official 2027 changes.
What do the salary and bonus ceilings mean?
From 1 January 2026, the Ordinary Wage ceiling is S$8,000 per month. A monthly salary above that does not attract mandatory CPF on the excess Ordinary Wages. Bonuses and other Additional Wages are a separate calculation; “no CPF above S$8,000” is therefore an incomplete description of the year. The IRAS employee CPF relief reference confirms the effective date and continuing S$102,000 annual salary ceiling.
For an employee with one employer, the Additional Wage ceiling is S$102,000 less total Ordinary Wages subject to CPF for the year. Use the CPF definitions of Ordinary and Additional Wages rather than assuming every irregular payment is a bonus. The employer must use the applicable computation and adjustment rules. Source: CPF Board’s wage definitions and ceilings.
| Illustrative full-year employment | Ordinary Wages subject to CPF | Remaining Additional Wage ceiling |
|---|---|---|
| S$8,000 each month for 12 months | S$8,000 × 12 = S$96,000 | S$102,000 − S$96,000 = S$6,000 |
| S$5,000 each month for 12 months | S$5,000 × 12 = S$60,000 | S$102,000 − S$60,000 = S$42,000 |
The second example does not create a S$42,000 bonus or a contribution on money not earned. It is the ceiling available for actual Additional Wages. Employment changes, multiple employers and changing wages need the official calculation; do not force them into a full-year example. Wage ceilings, retirement sums and the maximum accepted top-up are different limits.
What interest does CPF pay, and for which period?
For 1 July to 30 September 2026, the published base rates are 2.5% a year for OA and 4% for SA, MA and RA. CPF Board has also announced those same rates for 1 October to 31 December 2026. The 22 September 2026 announcement extends the 4% SA/MA/RA floor through 31 December 2027. An announced floor for that period is not a promise that every future rule will remain unchanged.
OA has a legislated minimum rate of 2.5%. SA, MA and RA use a separate pegging formula subject to the currently extended floor. Keep the distinction: it is inaccurate to describe both floors as identical permanent statutory promises. The CPF interest reference explains the rate structure and applicable quarter.
Below 55, extra interest is 1% on the first S$60,000 of combined CPF balances, with at most S$20,000 from OA counted. From 55, it is 2% on the first S$30,000 and 1% on the next S$30,000, with the same OA cap. Extra interest generated by OA goes to SA or RA, rather than increasing the OA balance available for housing. These limits are also stated in the quarterly announcement.
“Up to 6%” is not 6% on every dollar in every account. Age, the combined-balance bands and the OA cap matter. For illustration only, S$10,000 held for a full year at a base rate of 2.5% generates S$250 before extra-interest rules; at 4%, it generates S$400. Those are simple arithmetic examples, not a calculation of a member’s actual statement.
Actual CPF interest is computed monthly, credited by the following year and compounded annually. Contributions and refunds received this month start earning interest next month; withdrawals or deductions stop earning interest from the month they occur. The interest-computation FAQ explains why multiplying today’s balance by a yearly rate may not reproduce the statement.
What changes when you turn 55?
At 55, a Retirement Account is created. Savings move first from SA, then from OA, up to the applicable Full Retirement Sum. The SA closes; remaining SA savings move to OA. Where savings are insufficient, up to S$5,000 may be retained in OA for withdrawal. Read CPF Board’s age-55 explanation alongside your own Retirement Dashboard rather than treating the transition as a fourth account added to three unchanged accounts.
BRS and FRS follow your cohort; ERS follows the calendar year
| Year you turn 55 | Basic Retirement Sum (BRS) | Full Retirement Sum (FRS) |
|---|---|---|
| 2026 | S$110,200 | S$220,400 |
| 2027 | S$114,100 | S$228,200 |
The BRS is tied to the year you turn 55 and remains the same for life; FRS is twice BRS. The official BRS table is the source for these cohort figures. Someone who turned 55 in 2026 does not acquire the 2027 cohort FRS merely because January arrives.
| Calendar year | Enhanced Retirement Sum (ERS) |
|---|---|
| 2026 | S$440,800 |
| 2027 | S$456,400 |
ERS is different: it is the prevailing voluntary RA top-up level for members aged 55 and above, regardless of the year they turned 55. It increases yearly. It is not compulsory, and it is not the maximum amount eligible for tax relief. The dashboard calculates the amount a particular member can still top up. Source: CPF Board’s ERS explanation.
Can you withdraw everything at 55?
No. Under the normal withdrawal rules, meeting FRS allows withdrawal of eligible OA savings. If FRS is not met, withdrawal is generally limited to up to S$5,000 from available savings, with non-withdrawable OA amounts potentially transferred to RA. S$5,000 is not a grant where the member lacks that amount. Use the age-55-to-64 withdrawal rules and the amount shown in the Retirement Dashboard.
A qualifying Singapore property whose lease lasts to at least age 95 can support setting aside part of FRS through property, allowing withdrawal of eligible RA savings above BRS. That is not a universal entitlement to withdraw half of RA. Conditions, excluded monies and future refund obligations matter. See withdrawal rules for property owners.
In particular, retirement top-up monies cannot be taken out as a lump sum or released using property. CPF Board reserves them for retirement payouts. This restriction is explained separately in how retirement top-ups are used. Do not make a top-up on the assumption that crossing 55 or exceeding a retirement-sum figure will reverse it.
Does CPF LIFE begin automatically at 65?
Not for everyone, and not necessarily at 65. CPF LIFE provides lifelong monthly payouts, but automatic inclusion has conditions. CPF Board’s current rule applies when a member born on or after 1 January 1958 has at least S$60,000 in CPF retirement savings when starting payouts. Members not automatically included can choose to join; CPF Board says there is no minimum savings requirement for voluntary joining. See who can join CPF LIFE.
For members automatically included, payouts can start from 65 to 70. If no plan is chosen before 70, the default is the Standard Plan with payouts beginning at 70. Members outside automatic inclusion have different joining arrangements. The plan-selection FAQ is more precise than saying that everybody’s RA automatically becomes CPF LIFE at 65.
| Plan | Payout pattern | What to understand |
|---|---|---|
| Standard | Higher initial payouts than Escalating, with a steady pattern. | Steady nominal payouts do not automatically preserve purchasing power. |
| Escalating | Starts lower and increases by 2% each year. | A fixed 2% increase is not an exact match to the inflation each household experiences. |
| Basic | Lower payouts that can decline when combined CPF balances fall below S$60,000. | Do not assume it is simply Standard with a guaranteed larger inheritance. |
All three provide lifelong payouts. Compare them using CPF Board’s plan descriptions and the personal estimator. A bequest depends on the remaining premium balance and other remaining CPF savings; it is not a fixed promised amount attached to a plan name.
For a clearly bounded illustration, CPF Board’s table shows an estimated S$1,780 monthly from 65 for a male member on the Standard Plan who set aside S$220,400 in RA at 55. The table projects the RA growing before payout age. It is not an estimate for someone who first has S$220,400 at 65, nor a quote for every member. The official payout examples state their assumptions and possible adjustments.
Deferring can raise monthly payouts by up to 7% for each year deferred, not a guaranteed investment return of 7% on the account. Starting later also means foregoing payouts during the deferral period. The payout-start FAQ and payout-calculation factors explain the distinction. Use an individual projection rather than selecting a start age from a headline.
What is MediSave, and what is the S$79,000 figure?
MediSave helps pay approved hospitalisation, selected outpatient treatment, long-term care and other permitted healthcare uses. Specific treatment and insurance-premium limits apply. It is not a promise that every medical bill can be paid entirely from MA. Start with CPF Board’s MediSave guide and check the relevant treatment or policy with the provider.
The prevailing Basic Healthcare Sum in 2026 is S$79,000 for members below 65. For members turning 65 in 2026, that cohort amount becomes fixed for life; older cohorts generally retain their own earlier BHS. The official BHS table separates these groups. It is not an annual bill or a requirement to contribute S$79,000 in one year.
Savings above the applicable BHS are redirected within CPF according to age and retirement-sum conditions, rather than lost. They generally go towards SA or RA; where the relevant FRS conditions are met, they can go to OA. Consult the overflow rules for the actual account situation. The BHS is also not a minimum balance that must be reached before approved MediSave use: CPF Board explains the absence of a minimum MA balance requirement.
What happens when CPF is used for a home?
OA can fund eligible housing uses, subject to the applicable property, lease, financing and usage limits. Available CPF is not automatically the amount allowed for a particular purchase. Use the official home-buying guide and the Home Ownership Dashboard for the property being considered. For loan terminology, continue with WahLiao’s existing HDB loan and bank loan explainer.
When a property is sold, the required CPF refund generally includes the principal used and accrued interest: the interest those savings would have earned in CPF. A property pledge can create a further refund requirement. This is money restored to CPF savings, not a payment of accrued interest to an estate agent. Source: CPF refunds on sale or transfer.
The cash-shortfall exception matters. If the whole property is sold at market value but proceeds after the outstanding housing loan cannot cover the full required refund, CPF Board says the available balance is refunded without a cash top-up of that CPF shortfall. A below-market-value sale can require a cash top-up. Option monies form part of the selling price; they are not spare cash outside the calculation. See the official insufficient-proceeds FAQ and the sale-refund guide.
Before 55, housing refunds go to OA. From 55, refunds first help meet the required retirement sum in RA, with the remainder in OA, subject to the applicable rules. The refund-destination FAQ explains the difference. A large sale price therefore does not establish either the cash proceeds or how much CPF is available for the next home. Ask for the transaction-specific calculation before relying on either figure.
What should you understand before a retirement top-up?
Separate a retirement cash top-up, an OA-to-SA or OA-to-RA transfer, a MediSave top-up and a voluntary housing refund. They have different purposes and limits. Under the retirement top-up rules, cash top-ups and CPF transfers are irreversible and committed to retirement payouts. OA transfers go to SA below 55 or RA from 55, subject to limits. Transfers do not qualify for cash-top-up tax relief or MRSS matching. Source: retirement top-ups and transfers.
The decision is not only “Which interest rate is higher?” It also includes “Which permission am I giving up?” Money reserved for monthly retirement payouts cannot simultaneously be counted as an emergency cash buffer or a future housing payment. Write the proposed amount in one place in a household plan, not in several places that each assume it is available.
Tax relief is not a refund of the contribution
Eligible cash top-ups can attract up to S$8,000 relief for self and a separate S$8,000 in total for qualifying family members. MediSave top-ups share these buckets; there is not another S$8,000 for each account or relative. Conditions, recipient limits and the overall S$80,000 personal relief cap apply. Cash top-ups made in 2026 relate to Year of Assessment 2027. Source: IRAS CPF Cash Top-up Relief.
For retirement top-ups, the amount that can be accepted up to ERS is not the same as the amount qualifying for relief up to the relevant FRS limit. Eligibility also depends on the giver and recipient conditions; top-ups to spouses or siblings have additional conditions. Check CPF Board’s eligibility explanation rather than assuming every accepted payment reduces tax.
Amounts attracting MRSS matching do not also qualify for cash-top-up relief; the exclusion applies from YA 2026 for relevant top-ups made from 2025. Amounts attracting MMSS matching are excluded from YA 2027 for relevant MediSave top-ups made from 2026. IRAS states both exclusions on its relief page. Accepted top-ups are not refunded merely because the expected relief is unavailable.
An arithmetic illustration: if a fully eligible S$1,000 deduction reduced income otherwise taxed at an assumed 7%, the reduction in tax would be S$70, not S$1,000. The 7% is an example assumption, not the reader’s rate. Actual relief and tax saved depend on the person’s assessed position; use the official assessment rather than treating a relief cap as cash back.
What does MRSS match?
The Matched Retirement Savings Scheme offers eligible members dollar-for-dollar matching on qualifying cash top-ups, capped at S$2,000 per year and S$20,000 over a lifetime. From 2026, eligible Singaporeans below 55 with verified disability status can also qualify. Citizenship, residence, savings, income and property criteria still apply. It is not an automatic bonus for every CPF top-up. Use the MRSS scheme page, current eligibility rules and your dashboard.
Do not calculate eligibility from a headline RA balance alone: the scheme has its own definition of savings and uses specified assessment data. Check the current assessment before transferring money. The family’s intention to help is separate from whether a particular payment attracts matching, relief, both under different eligible amounts, or neither.
What happens to CPF savings after death?
A CPF nomination is separate from a will. CPF savings covered by nomination do not form part of the estate covered by the will; the nomination also covers a remaining CPF LIFE premium balance. Without a nomination, the Public Trustee distributes relevant CPF savings under the applicable intestacy framework and charges an administrative fee. The official nomination guide explains coverage and exclusions.
Properties bought using CPF, CPFIS investments and Dependants’ Protection Scheme proceeds are not all covered by the same nomination. Do not assume one document settles every asset. Review nominations at major family changes, and use the official process rather than sharing account credentials with someone offering to arrange it.
A practical way to read the next CPF statement
Begin with a question you can resolve. For a payslip, compare the wage period, applicable status and employee deduction. For retirement, distinguish the balances from the dashboard’s withdrawable amount and estimated payout. For housing, look at CPF used and the potential refund, not only the property’s asking price. For a top-up, check the permitted destination and remaining limit before considering any tax benefit.
| What you are checking | What to write down | What not to assume |
|---|---|---|
| Employment contribution | Wage period, age band, PR year if relevant, employee and employer amounts. | One percentage applies to all workers or all wages. |
| Retirement planning | Cohort BRS/FRS, current RA, payout estimate and start-age assumption. | The payout quoted for another person applies to you. |
| Cash access | The actual amount available under the relevant withdrawal rules. | Total CPF balance is available cash. |
| Housing sale | Loan balance, required refund, option monies and expected destination of the refund. | Sale price equals spendable proceeds. |
| Proposed top-up | Destination, irreversible commitment, eligibility for matching and relief. | Accepted payment guarantees tax savings. |
| Family arrangements | Nomination and the separate arrangements for excluded assets. | A will automatically covers CPF savings. |
This is a reading checklist, not a request to upload a statement or disclose a Singpass login. Keep personal identifiers and account credentials private. The public guide explains the questions; CPF Board’s authenticated services establish the numbers for an individual account.
Questions people ask
Does everyone contribute 37%?
No. It is the combined rate for the group specified above. Only the employee portion is deducted from salary. Age, wages, citizenship or PR year and employment category matter. Self-employed persons and platform workers need their applicable CPF rules rather than this ordinary employee table.
Is turning 55 the same as beginning CPF LIFE?
No. The age-55 account transition, permitted withdrawals and monthly-payout arrangements are separate steps. Consult the age-55 and CPF LIFE eligibility sections, then the personal dashboard, rather than treating one birthday as a release of the entire balance.
Can a retirement top-up be withdrawn once FRS is met?
Not merely for that reason. Retirement top-up monies have restrictions beyond the general withdrawal rules. They are reserved for payouts and cannot simply be withdrawn in cash or using property. Read the top-up conditions before payment, not after it.
Is BHS a debt if my MediSave is below it?
No. It is not a bill for the difference. The ordinary contribution obligations and permitted medical uses are separate rules. CPF Board’s BHS and minimum-balance explanations should be read together; a low balance does not create a requirement to top up to the published BHS before using approved benefits.
Is a CPF article a substitute for personal advice?
No. This guide does not know your liabilities, household obligations, health, tax position or account restrictions. Use CPF Board for account-specific explanations and suitably qualified advisers where individual financial or tax advice is needed. No product, top-up amount or investment is selected for you here.
Sources and maintenance
The linked primary sources were checked on 29 September 2026. The contribution table applies to 2026 wages; the senior-worker changes apply from 1 January 2027. Quarterly interest dates and the separately announced floor extension are stated in the interest section. BRS and FRS are cohort figures; ERS is a calendar-year figure. Examples are labelled so they are not mistaken for personal account outcomes.
Refresh triggers are a new CPF interest announcement, contribution-table change, retirement-sum or BHS announcement, material withdrawal or top-up rule change, or a revised IRAS relief rule. An edit to a link does not reverify every figure. This release explains the normal pathways and does not attempt to resolve every special withdrawal, overseas, pensioner or employment-category case.
Continue with The Ledger and the separate current-rate instrument. The broader budget framework is in the FinanceOS closed loop. Evidence standards are set out in How WahLiao Judges.
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