By the WahLiao desk · Last verified 29 September 2026
Foreigners on work passes do not contribute to CPF, Singapore’s national savings scheme. When you become a permanent resident, you and your employer start contributing, but at reduced graduated rates for your first two years. For employees aged 55 and under, the total is 9% of wages in the first year and 24% in the second, rising to the full 37% from the third year. Employer and employee can jointly apply to pay full rates sooner.
CPF is the biggest financial change that comes with PR status. Part of your salary moves into accounts you cannot freely withdraw, which fund housing, healthcare and retirement. The graduated rates soften the change in take-home pay over two years.
CPF for new PRs at a glance (employees aged 55 and under)
| Year of PR status | Employer | Employee | Total |
|---|---|---|---|
| Year 1 (graduated rates) | 4% | 5% | 9% |
| Year 2 (graduated rates) | 9% | 15% | 24% |
| Year 3 onwards (full rates) | 17% | 20% | 37% |
These are the CPF Board’s graduated rates for monthly wages above S$750, unchanged since 2016. Contributions apply to ordinary wages up to S$8,000 a month and total wages up to S$102,000 a year.
The WahLiao Verdict
| What changes | Your take-home pay falls as contributions start, and a savings pot begins. |
| What you get | Savings for housing, healthcare and retirement, with 2.5% to 4% interest. |
| The option | Full rates from day one, if you and your employer jointly apply. |
| Worth knowing | MediSave and MediShield Life come with it. |
| Read next | CPF Explained, for how the accounts work. |
How the graduated rates work
By default, new permanent residents and their employers contribute at graduated rates for two years: 4% from the employer and 5% from the employee in the first year, then 9% and 15% in the second, for employees aged 55 and under earning more than S$750 a month. From the third year, the full rates for citizens apply: 17% and 20%, 37% in total. Older employees and lower wages have different rates; the CPF Board’s tables set them out.
Paying full rates sooner
An employee and employer can jointly apply to the CPF Board to contribute at full employer and full employee rates from the start. Alternatively, an employer can choose to pay the full employer share while the employee stays on graduated rates. Full rates mean more savings sooner, but lower take-home pay in the first two years.
What the contributions pay for
Contributions go into the Ordinary Account, which can pay for housing, and the Special and MediSave Accounts, which fund retirement and healthcare. In the fourth quarter of 2026, the Ordinary Account earns 2.5% a year and the others 4%. The Ledger’s CPF Explained covers the accounts in full, and The Ledger lists the current numbers.
CPF for new PRs: FAQ
Do foreigners pay CPF in Singapore?
No. Employment Pass and S Pass holders do not contribute. CPF starts when you become a permanent resident.
What are the CPF rates for new PRs?
For employees aged 55 and under, 9% of wages in the first year and 24% in the second, rising to the full 37% from the third year.
Can I pay the full CPF rate as a new PR?
Yes, if you and your employer jointly apply to the CPF Board.
Is there a limit on CPF contributions?
Contributions apply to ordinary wages up to S$8,000 a month and total wages up to S$102,000 a year.
Read next
This page belongs to Moving to Singapore. Thinking about PR? Read applying for permanent residence.
Sources checked 29 September 2026: CPF Board, contribution rate tables for permanent residents, noting that graduated rates are unchanged since 1 January 2016; CPF Board, interest rates for October to December 2026. Rates for employees over 55 and for lower wages differ; check the CPF Board’s current tables. General information, not financial advice. Last updated 29 September 2026.
