Mandatory CPF Contributions for Employees
Mandatory CPF contributions are applicable to Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) who are employed in Singapore under a contract of service [2]. Employers are legally required to make these contributions if the employee's total wages exceed $50 per month, regardless of whether the employment is full-time, part-time, temporary, contract, or casual [2]. New SPRs have a graduated contribution rate for the first two years before moving to the full rate in the third year [2].
Mandatory MediSave Contributions for Self-Employed Persons
Self-employed persons (SEPs) who are SCs or SPRs and have an annual Net Trade Income (NTI) exceeding $6,000 are required to contribute to their MediSave Account [1]. This ensures SEPs have funds for healthcare needs. Voluntary contributions to their Ordinary and Special Accounts are also possible [3].
Voluntary Contributions and Topping-Up
SCs and SPRs can make voluntary contributions to their three CPF accounts (Ordinary, Special, and MediSave), subject to the CPF Annual Limit [3]. The Retirement Sum Topping-Up Scheme (RSTU) allows individuals to top up their own or family members' Special or Retirement Accounts to boost retirement savings and may provide tax relief [1]. Cash top-ups can also be made specifically to the MediSave Account up to the Basic Healthcare Sum (BHS) [1].
Exempted Groups: Who Cannot Apply for Mandatory CPF?
Certain groups are typically exempted from mandatory CPF contributions [4].
Foreign employees
Foreigners working in Singapore are generally not required to contribute to CPF and are covered under their own social security systems. They may consider other savings schemes like the Supplementary Retirement Scheme (SRS) [1].
Other exempted persons
Specific groups may be exempted from mandatory CPF contributions, including certain students, part-time domestic employees based on hours worked, and employees of international organisations [1].
Comparing CPF Contributor Types
Understanding how different groups participate in CPF is important. The table below compares eligibility and contribution types.
| Contributor Type | Mandatory Contributions | Voluntary Contributions | Who Can Make Contributions | Key Feature |
|---|---|---|---|---|
| Employee (SC/SPR) | Yes, employer contributes based on wages [2] | Yes, can top-up all accounts [3] | Employee and Employer | Contributions cover retirement, housing, and healthcare [1] |
| Self-Employed (SC/SPR) | Yes, MediSave Account only (if NTI > $6k) [1] | Yes, can top-up all accounts [3] | Self-Employed Person | Flexibility to contribute to OA and SA as needed [1] |
| Non-Employed (SC/SPR) | No [1] | Yes, can top-up all accounts [3] | Individual | No earned income requirement for voluntary top-ups [3] |
| Foreign Employee | No (since 2003) [4] | No, consider Supplementary Retirement Scheme (SRS) [1] | N/A | Excluded from CPF, but can explore other schemes [1] |
The Role of the CPF Board
For detailed information and to manage contributions, the official CPF Board website is the primary resource [1]. You can find guidelines, calculators, and tools there to help manage savings effectively [1]. Learn more at the Central Provident Fund Board.
Conclusion: Navigating CPF Eligibility
Knowing who can apply for CPF is essential for financial planning in Singapore. Whether an employee, self-employed, or making voluntary contributions, the CPF system helps build financial security [1]. Mandatory contributions provide a savings foundation for most working SCs and SPRs, while voluntary options allow for enhanced future financial security [1].
