Understanding CPF Contribution Rates for Permanent Residents in Singapore
Becoming a Permanent Resident (PR) in Singapore comes with various benefits, including access to the Central Provident Fund (CPF). This article clarifies the CPF contribution rates for PRs, addressing common queries and providing a comprehensive overview.
CPF Contribution Rates for PRs: A Graduated System
Unlike Singapore citizens, PRs enjoy a graduated CPF contribution rate system during their first two years of residency. This helps ease the transition into the full contribution rates.
First Year of PR Status
- Employee Contribution: 4% of your salary
- Employer Contribution: 5% of your salary
Second Year of PR Status
- Employee Contribution: 9% of your salary
- Employer Contribution: 15% of your salary
Third Year and Onwards
- Employee Contribution: 20% of your salary
- Employer Contribution: 17% of your salary
It's important to note that both you and your employer can jointly apply to the CPF Board to contribute at the full rates (20% employee, 17% employer) from your first year. However, this requires approval from the CPF Board.
Comparison of Contribution Rates
Difference Between 1st and 2nd Year PR Contribution Rates
The difference in contribution rates between the first and second year is significant:
- Employee contribution increases by 5% (from 4% to 9%).
- Employer contribution increases by 10% (from 5% to 15%).
Difference Between PR and Citizen Contribution Rates
The main difference lies in the graduated system for PRs. Singapore citizens contribute at the full rates from the outset (20% employee, 17% employer for those aged 55 and below). PRs can opt for full rates from the first year, but this requires a joint application with their employer and approval from the CPF Board.
Timing and Allocation of CPF Contributions
When Do CPF Contributions Begin?
Your CPF contributions begin on the date your PR status is approved, as shown on your Form 5/5A. If your PR status is granted mid-month, your contributions will be prorated. Learn more about PR calculation for foreign workers.
CPF Account Allocation
Your CPF contributions are divided among three accounts: Ordinary Account (OA), Special Account (SA), and Medisave Account (MA). The allocation percentages depend on your age:
| Age Group | OA (%) | SA (%) | MA (%) |
|---|---|---|---|
| 35 and below | 62.17 | 16.21 | 21.62 |
| Above 35 – 45 | 56.77 | 18.91 | 24.32 |
| Above 45 – 50 | 51.36 | 21.62 | 27.02 |
| Above 50 – 55 | 40.55 | 31.08 | 28.37 |
| Above 55 – 60 | 38.72 | 27.41 | 33.87 |
| Above 60 – 65 | 15.92 | 36.36 | 47.72 |
| Above 65 – 70 | 6.07 | 30.3 | 63.63 |
| Above 70 | 8 | 8 | 84 |
The allocation process prioritizes Medisave, then Special Account, with the remainder going to the Ordinary Account. For more details on CPF contributions, visit the CPF contribution Singapore page.
Additional Considerations
CPF Contributions for PRs Above 55
For PRs above 55, the contribution rates are consistent with the graduated or full rates based on their PR status duration, unlike Singapore citizens who have age-based reductions. Explore retirement age Singapore for more information.
Voluntary CPF Contributions
PRs can make voluntary contributions to their CPF accounts, subject to annual limits. These contributions are generally not tax-deductible, except for voluntary contributions to your MediSave Account under specific circumstances. Check out employer contribution to CPF for more insights.
Giving Up PR Status
If you renounce your PR status, you can withdraw your CPF savings after submitting the necessary forms and documents to the CPF Board.
Employer CPF Contribution Exemptions
There are no specific employer CPF contribution exemptions for hiring PRs. However, lower contribution rates apply during the first two years of PR status. Employers can opt for full contributions with CPF Board approval.
CPF Contribution Rates for PRs Earning More Than $750
For PRs earning more than $750 a month, the graduated rates apply to the first $6,000 of their monthly ordinary wages. Additional wages (bonuses, etc.) have a separate annual cap. For related topics, see gross salary Singapore.
This information is for general guidance only. For the most accurate and up-to-date information, please refer to the official CPF Board website.
