CPF Contribution Table 2025: The Central Provident Fund (CPF) is a key social security savings scheme in Singapore designed to help citizens and permanent residents secure their future through contributions made by both employees and employers. It ensures individuals have sufficient savings for retirement, healthcare, and housing needs.
The CPF contribution rates and wage ceilings are adjusted periodically by the government to keep up with economic changes and workforce needs. For 2025, new contribution limits and updated rates have been introduced, affecting how much both employees and employers must contribute. Understanding these changes is important for every working Singaporean and employer to ensure compliance with regulations and to plan for financial security.
This article provides a detailed breakdown of the CPF Contribution Table 2025, explaining the new limits, contribution percentages, and their implications for workers in different age groups.
Overview of the CPF Contribution Table 2025
| Category | Details |
| Scheme Name | Central Provident Fund (CPF) |
| Regulated By | Singapore Government |
| Purpose | Retirement, healthcare, and housing savings |
| Applies To | Singaporean citizens and permanent residents |
| Ordinary Wage Ceiling | S$6,800 |
| Additional Wage Ceiling | Assessed annually |
| Employer Contribution (up to 55 years) | 17% |
| Employee Contribution (up to 55 years) | 20% |
| Total Contribution (up to 55 years) | 37% |
| Effective Date | January 1, 2025 |
How the CPF System Works
CPF is a compulsory savings scheme where employees and employers contribute a portion of wages each month. The funds are distributed across different CPF accounts, each serving a specific purpose:
- Ordinary Account (OA): Used for home loans, education expenses, and certain investments.
- Special Account (SA): Focuses on retirement savings and investment in retirement-related products.
- MediSave Account (MA): Allocated for healthcare expenses, insurance premiums, and medical treatments.
- Retirement Account (RA): Formed at age 55, combining OA and SA savings to provide monthly payouts during retirement.
These structured accounts ensure CPF members have dedicated funds for different financial needs throughout their lives.
CPF Contribution Limits and Wage Ceilings in 2025
Ordinary Wage Ceiling
The Ordinary Wage (OW) ceiling is set at S$6,800 per month for 2025. CPF contributions apply only to salaries up to this amount each month. Any earnings beyond this threshold will not be subjected to CPF deductions.
Additional Wage Ceiling
The Additional Wage (AW) ceiling applies to bonuses and other non-regular earnings. It is calculated annually using the formula:
Annual CPF Wage Ceiling = (S$102,000 – Total Ordinary Wages Subject to CPF Contributions)
For instance, if an employee earns S$6,800 per month and receives a S$50,000 bonus, CPF contributions would apply to an additional wage cap of S$20,400. This ceiling ensures contributions are limited each year to prevent excessive deductions.
CPF Contribution Rates by Age Group (Effective January 1, 2025)
CPF contribution rates are structured by age, ensuring that younger workers contribute at higher rates to build long-term savings while older workers transition to lower rates. The updated CPF rates for 2025 are as follows:
| Age Group | Employer Contribution | Employee Contribution | Total CPF Contribution |
| Up to 55 years | 17% | 20% | 37% |
| 55 to 60 years | 15% | 16% | 31% |
| 60 to 65 years | 11.5% | 10.5% | 22% |
| 65 to 70 years | 9% | 7.5% | 16.5% |
| Above 70 years | 7.5% | 5% | 12.5% |
As workers get older, CPF contributions decrease to account for changing financial needs and retirement planning.
CPF Contribution Rules for Permanent Residents (PRs)
Newly granted permanent residents (PRs) contribute CPF at a lower rate during their first two years before transitioning to the standard rates applicable to citizens.
- First-Year PRs: Employers contribute between 4% to 9%, while employees contribute 5% to 15%.
- Second-Year PRs: Employer contribution increases to 6% to 15%, while employee contribution ranges from 7.5% to 12.5%.
- Third-Year Onwards: PRs contribute at the same rates as Singaporean citizens.
This adjustment period allows PRs to ease into the CPF system without significantly reducing their take-home income.
Benefits of CPF Contributions
CPF serves as an essential financial safety net for working Singaporeans and PRs. Some of the significant benefits include:
- Retirement Security: CPF savings provide monthly payouts upon reaching the eligible retirement age.
- Higher Interest Rates: CPF accounts earn 3.5% interest on OA and 5% on SA and MA, offering better returns than regular bank savings.
- Healthcare Coverage: CPF MediSave ensures individuals have enough savings to cover medical treatments, hospital bills, and insurance premiums.
- Employer Contributions: Employers contribute up to 17% of an employee’s wages to CPF, effectively increasing total savings.
- Homeownership Support: CPF OA can be used to pay for housing loans, down payments, and monthly mortgage installments.
How to Submit CPF Contributions
Employers are responsible for submitting CPF contributions on behalf of their employees every month. Payments can be made through the following methods:
- CPF Online Portal (CPF e-Submit): Employers log in using SingPass or CorpPass to process payments.
- Direct Debit or Bank Transfer: Allows automated monthly payments.
- eNETS and AXS Stations: Offers digital payment options for CPF submissions.
- Cheque Payments: Although less common, employers can still process CPF contributions via cheque.
Employers must make payments by the last day of each month to avoid penalties or legal action.
Frequently Asked Questions (FAQs)
What is the CPF contribution rate for employees under 55 in 2025?
Employees under 55 will contribute 20% of their monthly salary, while employers will contribute 17%, making the total CPF contribution 37%.
What happens if an employee earns above the CPF wage ceiling?
CPF contributions apply only to the first S$6,800 of monthly wages. Any amount earned above this ceiling is not subject to CPF deductions.
When can CPF savings be withdrawn?
CPF savings from the Special Account can be withdrawn upon reaching age 63. Ordinary and MediSave accounts remain accessible for specific needs like housing and medical expenses.
Do PRs contribute the same CPF rates as Singaporean citizens?
Not immediately. PRs contribute at reduced rates for the first two years before transitioning to the same CPF contribution rates as Singaporean citizens in the third year.
How can employers ensure CPF contributions are submitted on time?
Employers must process CPF payments through the CPF online portal or other accepted payment methods before the last day of each month to avoid penalties.
Conclusion
The CPF Contribution Table 2025 highlights key updates that impact both employees and employers in Singapore. With adjusted wage ceilings, updated contribution rates, and continued benefits, CPF remains a critical part of financial planning.
Understanding how CPF contributions work allows individuals to plan for their retirement, healthcare, and housing expenses more effectively. Employers must also ensure compliance with CPF regulations to avoid penalties. For the latest updates, individuals should check the official CPF website or consult financial advisors.
