Short answer: Once you become a PR, you and your employer contribute part of your monthly salary to CPF. New PRs start on lower graduated rates for two years, then move to full rates of 37% (17% employer, 20% employee) if aged 55 and below, on wages up to S$8,000 a month. The money goes into accounts for housing, healthcare and retirement and earns interest of 2.5% to 4% a year, plus extra interest on the first S$60,000. Check your own figures on the CPF Board website.
Key takeaways
- Graduated rates apply by default in your first two years as a PR.
- You and your employer can jointly opt for full rates earlier.
- CPF can pay for a Singapore home, approved medical costs and insurance.
- Make a CPF nomination early; it is free and done online.
What CPF is for
CPF is Singapore's compulsory savings scheme for citizens and PRs. As a work pass holder you had no CPF; as a PR, your contributions build savings for three needs.
Housing
Down payments, monthly mortgage payments, stamp duty and legal fees for a Singapore home.
Healthcare
Approved hospital bills and premiums for MediShield Life, CareShield Life and Integrated Shield Plans.
Retirement
Monthly payouts for life through CPF LIFE, from age 65.
Graduated rates for new PRs
By default, PRs contribute at graduated rates for the first two years of PR status, so the change to take-home pay is gradual. These are the rates for PRs aged 55 and below earning more than S$750 a month.
| Year of PR status | Employer | Employee | Total |
|---|---|---|---|
| 1st year (default) | 4% | 5% | 9% |
| 2nd year (default) | 9% | 15% | 24% |
| 1st year, full employer rate | 17% | 5% | 22% |
| 2nd year, full employer rate | 17% | 15% | 32% |
| 3rd year onwards | 17% | 20% | 37% |
Opting for higher rates. You and your employer can jointly apply to CPF Board to contribute at the full employer rate with graduated employee rates, or at full rates for both. Your savings grow faster from the start, but your employer must agree because it raises their cost.
Full contribution rates from your third year
From 1 January 2026, for citizens and PRs from their third year, with monthly wages above S$750:
| Age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
The wage ceiling. CPF only applies to the first S$8,000 of monthly ordinary wages. On a S$15,000 salary, contributions are calculated on S$8,000, so the most you and your employer pay together each month on ordinary wages is S$2,960. Bonuses attract CPF up to an annual wage ceiling of S$102,000.
The four CPF accounts
Contributions are split across accounts with different purposes. The split changes with age; for members aged 35 and below, a 37% contribution is roughly 23% to the Ordinary Account, 6% to the Special Account and 8% to MediSave.
Ordinary Account (OA)
The most flexible account: housing, approved education, investments under the CPF Investment Scheme, and some insurance.
2.5% a yearSpecial Account (SA)
Long-term retirement savings that cannot be used for housing. It closes at age 55, when savings move to the Retirement Account.
4% floor rateMediSave Account (MA)
Approved hospital and medical bills, and premiums for MediShield Life, CareShield Life and Integrated Shield Plans, for you and family members.
4% floor rateRetirement Account (RA)
Created at 55 from your SA and then OA savings, up to the Full Retirement Sum. It funds your CPF LIFE payouts.
4% floor rateCPF interest
Only up to S$20,000 of the Ordinary Account counts towards the extra interest, and extra interest on OA savings is paid into your Special or Retirement Account. Members below 55 can earn up to 5% a year on part of their balances. CPF Board reviews rates every quarter.
MediSave and healthcare schemes
MediShield Life
Basic national health insurance for large hospital bills, mainly in B2 and C class wards. PRs are covered automatically, for life, including pre-existing conditions. Premiums can be paid from MediSave.
Integrated Shield Plans
Optional private plans that add cover for higher ward classes or private hospitals. Part of the premium can be paid from MediSave. Premiums are usually lower if you join while young and healthy.
CareShield Life
Long-term care insurance that pays a monthly benefit if you become severely disabled. PRs born in 1980 or later are covered automatically from age 30, or from when they become PR if later. Optional supplements raise the payout.
Part of PR formalities. New PRs are covered by MediShield Life, and those eligible are enrolled in CareShield Life. If you already hold private insurance, compare it with an Integrated Shield Plan before deciding what to keep.
Retirement and CPF LIFE
At 55, a Retirement Account is created and savings are set aside up to your retirement sum. From 65, CPF LIFE pays a monthly income for life, based on how much you set aside.
| Retirement sum (turning 55 in 2026) | Amount | Estimated payout from 65 |
|---|---|---|
| Basic Retirement Sum | S$110,200 | About S$950 a month |
| Full Retirement Sum | S$220,400 | About S$1,780 a month |
| Enhanced Retirement Sum | S$440,800 | About S$3,440 a month |
- Working yearsContributions and interest
- Age 55Retirement Account created
- Age 65CPF LIFE payouts begin
- Up to 70Defer for up to 7% more a year
Using CPF for housing
What OA savings can pay for
- Down payment and monthly loan repayments
- Stamp duty and legal fees
- Home Protection Scheme premiums for HDB loans
Rules to know
- Withdrawal limits depend on the price, valuation and loan.
- For full use, the remaining lease must cover the youngest buyer to age 95.
- When you sell, CPF used plus accrued interest is refunded to your CPF.
Balance housing and retirement. Using all your Ordinary Account savings on a home can leave less for retirement. Many households use a mix of cash and CPF. See our PR property guide for HDB rules and stamp duty.
First steps for new PRs
Check your account
Log in to my cpf with Singpass or the CPF mobile app to see balances, contributions and estimated payouts.
Make a nomination
Without a nomination, CPF savings are distributed under intestacy rules. Nominating online is free.
Talk to HR about rates
Ask whether your employer will jointly apply for full rates, and check that payroll applies the right rate for each year.
Consider cash top-ups
Cash top-ups to your own retirement savings can qualify for tax relief of up to S$8,000 a year, plus up to S$8,000 more for eligible family members.
Planning PR for the rest of your family?
Book a free consultation to talk through including a spouse, children or parents in a PR application. See our family PR application service, or our citizenship application service if you are planning the next step.
This guide is general information based on CPF Board publications and is not financial, tax or legal advice. CPF rates, sums and rules change regularly; check the CPF Board website or the my cpf portal for your own position.