Central Provident Fund FAQs
The Central Provident Fund commonly abbreviated by Singaporeans and referred to as CPF, is a compulsory comprehensive social security saving plan. It aims to provide working Singaporeans with a sense of security and confidence in their old age.Under the purview of the Ministry of Manpower, the Central Provident Fund is administered by the Central Provident Fund Board which is a Statutory Board.
Your CPF is for your retirement. You can withdraw your CPF savings when you turn 55, after setting aside your CPF Minimum Sum. Your CPF Minimum Sum can be used to buy life annuity from a participating insurance company, placed with a participating bank or left in your Retirement Account with the CPF Board. From 62 (current draw-down age), you will receive monthly payments from your CPF Minimum Sum to help meet your basic needs in retirement.
Yes. Employees who are exempted from CPF contributions are:
Foreigners on Employment Pass, Professional Visit Pass or Work Permit
CPF contributions are not allowed for foreigners. Both the employer’s and employee’s share of contributions for foreign employees on Employment Pass, Professional Visit Pass or Work Permit will not be accepted.
Partners, sole-proprietors or self-employed
All Singapore citizens or Singapore Permanent Residents who derive income from Singapore or from outside Singapore through any trade, business, profession or vocation excluding employment under a contract of service are considered self-employed. Unlike employees, they do not contribute to all 3 CPF accounts. Instead, they are only required to contribute to their Medisave, which is computed based on their annual net trade income earned.
Employees working overseas
CPF contributions are not mandatory for Singaporean employees who work overseas. If you wish to continue making CPF contributions for your existing employees who are posted overseas, these are deemed as voluntary contributions. You have to register for a new CPF Submission Number (CSN) for such payments.
Your monthly contributions to your Medisave Account help you build up savings for your healthcare needs. Medisave can be used to pay for your own or your dependant(s)’ hospitalization expenses as well. In addition, it can also be used for certain outpatient treatments like chemotherapy and radiotherapy treatments.
You can also use your Medisave savings to pay the premiums for MediShield or private medical insurance plans under the Private Medical Insurance Scheme (PMIS).
Your Ordinary Account savings can be used to buy a home under the CPF housing schemes. You can buy an HDB flat under the Public Housing Scheme, or a private property under the Residential Properties Scheme. Your CPF savings can be used for full or part payment of the property, and to service the monthly housing payments. If you buy a flat under the Public Housing Scheme, you will need to be insured under the Home Protection Scheme.
From 1 July 2006, the Board no longer approves application under the Non-Residential Properties Scheme (NRPS). If you are currently using CPF to service your non-residential properties, you will not be affected by the policy change.
Yes. The Education Scheme is a loan scheme that allows you to use your CPF savings for full-time tertiary education in Singapore for those who are Singapore citizens or Permanent Residents.
Your CPF nomination allows you to specify who to receive your CPF savings, and how much each nominee should receive, when you are no longer around.
You do not need to make a CPF nomination if you wish to distribute your CPF savings under the intestacy laws. Distribution under the intestacy laws ensures that your family members will receive your CPF savings.
If your nominee is below the age of 18 years old at the time your CPF savings are paid out, his/her share will be forwarded to the Public Trustee for administration until he/she reaches 18 years of age.
You can check your CPF Statement any time by logging in to the CPF website with your SingPass. With My Statement, you can get an overview of your CPF account balances as well as view your transaction and contribution histories.
Yes, you can make voluntary contributions to build up your retirement savings. These contributions can also be used for your housing and health care needs.