Thursday, 15 November 2012

CPF (a brief summary)


THE CENTRAL PROVIDENT FUND (CPF) is a comprehensive social security savings plan. The overall scope and benefits of the CPF encompass the following:


Working Singaporeans and their employers make monthly contributions to the CPF and these contributions go into three accounts:

1) Ordinary Account - the savings can be used to buy a home, pay for CPF insurance, investment & education.
2) Special Account - for old age and investment in retirement-related financial products.
3) Medisave Account - the savings can be used for hospitalisation expenses and approved medical insurance.

The CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. Special, Medisave and Retirement Account savings currently earn a guaranteed minimum 4% interest until 31 December 2012. In addition, the first $60,000 in your combined CPF balances, with up to $20,000 from your Ordinary Account, will earn an extra 1% interest.



CPF CONTRIBUTION

Contribution rates varies depending mainly on work sectors, residential status, age group and amount of salary.

An example of contribution rates (from 1 Sept 2012) are as follows:

SECTION A
For   (1) Private Sector Employees
       (2) Non-Pensionable Employees (Statutory Bodies & Aided Schools)
       (3) Non-Pensionable Employees (Ministries)

       Note: For (1), (2) and (3), the Ordinary Wage Ceiling is $5,000.
Table A1
For   (a) Singapore Citizen
       (b) SPR in the 3rd year and onwards of obtaining SPR status
       (c) SPR in the 1st & 2nd year of obtaining SPR status but who has jointly
            applied with employer to contribute at full employer and employee rates


Employee
Age (Years)
Contribution Rate
(for monthly wages ≥ $1,500)
Credited into
Contribution by Employer
(% of
wage)
Contribution by Employee
(% of
wage)
Total Contribution
(% of wage)
Ordinary Account
(% of wage)
Special Account
(% of wage)
Medisave Account
(% of wage)
35 & below1620362367
Above 35-451620362178
Above 45-501620361989
Above 50-551418.532.513.59.59.5
Above 55-6010.51323.51229.5
Above 60-6577.514.53.51.59.5
Above 656.5511.5119.5

Note: For monthly wages < $1,500, please refer to the CPF Contribution Rates Table.


Contributions can be easily tabulated using the Online CPF Calculator provided on the website. http://www.cpf.gov.sg/cpf_info/Online/Contri.asp?prof= 


CPF SUBMISSION / PAYMENT

Submit CPF contribution details electronically via the CPF website, where payment is deducted electronically (GIRO). 
You will need a SingPass (https://www.singpass.gov.sg/sppubsvc/faq.html#S1_spto access this online service.


Submission is to be made 14 days after the end of the month of contribution. If the last day of the grace period falls on a Saturday, Sunday or Public Holiday, CPF contributions must be paid by the next working day. Interest would be imposed on late payment.





(SOURCE: CPF WEBSITE, http://mycpf.cpf.gov.sg/)

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