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How your CPF contributions and allocation rates change as you grow older

17 Dec 2019 
SOURCE: CPF Board

Remember the day you received your first paycheck at the end of the month and took your parents out for a nice meal to celebrate? Your first working CPF contributions were then deposited into your CPF accounts, and you started saving for your future! 

But #DidYouKnow that your CPF contribution and allocation rates are adjusted at various milestones to reflect your changing needs?  How your CPF contribution and allocation rates change v2019.jpg

​Age 35 and below
At the start of your career, your CPF contributions will amount to 37% of your monthly wages, with 17% contributed by your employer and 20% contributed by yourself. A large portion of this, 23% of your wages to be specific, goes towards your Ordinary Account (OA), which can also be used for your first home purchase in future.  

Above 35 to 55
If you are above 35 to 55, you’ll see that there is a gradual shift in allocation of your contributions from your OA to your Special Account (SA) and MediSave Account (MA). Between 50 and 55 years old, your SA and MA contributions will amount to 11.5% and 10.5% of your monthly wages respectively. These savings serve to form the foundation of your retirement and healthcare needs in old age.

​​​​​
Employee's age 
(years)
Total contribut​ions
for m​onthly wages ≥ $750​
(% of wage)
​ 
Allocation Rates from 1 Jan 2016
(for monthly wages ≥ $750) ​ ​
Ordinary Account
(% of wage)
Special Account
(% of wage)
MediSave Account
(% of wage)
Above 35 to 45

37


​21
79
Above 45 to 5019
810
Above 50 to 551511.510.5
 
Above 55 to 65 
Towards the later part of your working life, the percentage of your total monthly wages received in CPF contribution is reduced from 37% to 16.5%, with 9% contributed by your employer and 7.5% contributed by yourself if you are above 60 to 65. With this, you can continue to remain competitive in the workforce. 

Since it is highly likely for your home to be fully paid for and your retirement sum to be set aside in your Retirement Account (RA) by then, less of your contributions will be allocated to your OA and SA, i.e. you will continue to save 10.5% of your wages in your MA. 

Employee's age 
(years)​
​​
Total ​contributions
for monthly wages ≥ $750
(% of w​age)


Allocation Rates from 1 Jan 2016
(for monthly wages ≥ $750) ​ ​
Ordinary Account
(% of wage)
Special Account
(% of wage)
MediSave Account
(% of wage)
Above 55 to 6026123.510.5
​Above 60 to 6516.53.52.510.5
 
Above 65
If you decide to continue working after 65, your CPF contributions will be capped at 12.5% of your ​monthly wages, with 7.5% contributed by your employer and 5% contributed by yourself. Only 1% of your wages will be contributed to your OA and SA respectively. 10.5% will continue to go towards your MA to maintain the Basic Healthcare Sum (BHS)1 for any medical expenses you may incur in old age. Once the BHS has been met, the remaining contributions will be allocated to your RA.2

​​​
Employ​​ee's age 
(years)​​

Total contribut​ions
for monthly wages ≥​ $750
(% of wage)


Allocation Rates from 1 Jan 2016
​(for monthly wages ≥ $750) ​ ​
Ordinary Account
(% of wage)
Special Account
(% of wage)
MediSave Account
(% of wage)
Above 6512.51110.5
 
Do you have a better understanding of your CPF contribution and allo​cation rates now? You can put this knowledge to good use by taking your CPF savings into account when planning your finances for the future!


Information updated as at 27/8/2020


*Note: CPF contribution and allocation rates apply to Singapore Citizens and Permanent Residents in their 3rd year and onwards, who are private sector employees and public sector non-pensionable employees

1 You​​r BHS is fixed once you turn age 65 and the yearly adjustment will no longer apply to you

2​​ If you have met your BHS or Full Retirement Sum (FRS), your MediSave savings will flow into your OA


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