To use a CPF contribution calculator by hand, take the monthly wages that attract CPF (up to the Ordinary Wage ceiling) and multiply them by the employee and employer rates for the worker's age and residency status. Take-home pay is gross salary minus the employee's share. The employer's share is paid on top and does not reduce your pay.
What is CPF and how does it affect my salary?
The Central Provident Fund (CPF) is Singapore's mandatory savings scheme for retirement, housing and healthcare. It applies to Singapore Citizens and Permanent Residents (PRs) who work for an employer. Foreign employees on work passes are generally outside it.
Each month, the employer pays CPF on your wages. Part of that is deducted from your pay (the employee share), and part is added by the employer (the employer share). Both go into your CPF accounts.
This is why your gross salary and your take-home pay differ. Gross pay is the amount in your contract. Net pay is what reaches your bank account after the employee share is taken out.
What are the current CPF contribution rates?
CPF contribution rates depend on your age band and residency status. The employer and employee rates are both percentages of your wages. Rates are lower for older workers, and the CPF Board updates them from time to time. Always check the current table on the CPF Board website before you calculate.
Rates by age band
The CPF Board groups employees into age bands, such as 55 and below, above 55 to 60, above 60 to 65, above 65 to 70, and above 70. Each band has its own employer rate, employee rate and total rate. Moving into a new band changes the amounts from the following month.
Ordinary Wage and Additional Wage ceilings
- Ordinary Wage (OW) is wage earned for work in a given month, such as basic salary and regular allowances. CPF applies only up to a monthly OW ceiling.
- Additional Wage (AW) is pay that is not for the month alone, such as bonuses. It is subject to an annual AW ceiling.
- The AW ceiling is worked out from an annual wage limit minus the total OW that was subject to CPF during the year.
The ceiling amounts change over time, so use the figure currently published by the CPF Board.
New Permanent Residents
New PRs are usually on graduated rates during the early years of their PR status. These rates start lower than the full rates and step up. An employer and employee can jointly ask to use the full rates from the start. Check the CPF Board's table for the year of PR status you are in.
How do you calculate CPF contributions step by step?
Work through five steps: find the age band and rates, identify the CPF-liable wages, calculate the employee share, calculate the employer share, then add them together.
- Find the age group and rates. Look up the employee and employer percentages for the worker's age and residency status.
- Identify monthly Ordinary Wages subject to CPF. Add basic pay and other regular wages for the month. If the total is above the OW ceiling, use the ceiling instead.
- Calculate the employee share. Multiply the CPF-liable wages by the employee rate.
- Calculate the employer share. Multiply the same wages by the employer rate.
- Add the two shares. The sum is the total CPF contribution that goes into the employee's accounts for the month.
CPF applies rounding rules to contribution amounts, so a manual result can differ from payroll by a small amount.
How do you calculate your take-home pay (net salary)?
Net salary equals gross salary minus the employee's CPF contribution. The employer's share is not part of the deduction, because the employer pays it in addition to your gross salary.
Net salary = Gross salary − Employee's CPF contribution
Worked example with placeholder rates
The rates below are made-up round numbers to show the method. They are not real CPF rates. Replace them with the current rates for your age band.
- Monthly gross salary: $4,000 (assumed to be below the OW ceiling)
- Placeholder employee rate: 10%, so the employee share is $400
- Placeholder employer rate: 8%, so the employer share is $320
- Total contribution into CPF accounts: $720
- Take-home pay: $4,000 − $400 = $3,600
Other deductions
CPF may not be the only deduction. Your payslip may also show voluntary contributions, contributions to a self-help group fund, unpaid leave or other agreed deductions. Income tax is normally assessed separately by the tax authority and is not deducted through CPF.
How do you use the CPF contribution calculator?
Enter your monthly wage, your age and your residency status. The CPF Contribution Calculator (Employer & Employee) then applies the rates and ceilings and shows the result, so you do not need to look up each table yourself.
What to enter
- Your monthly gross wage.
- Your age, which sets the age band.
- Whether you are a Singapore Citizen or a PR, and for PRs, how long you have held PR status.
How to read the result
The output separates the employee share, the employer share and the total contribution. It also shows your net pay. Compare the net figure with your payslip. If they differ, check whether your payslip includes other deductions, or whether bonuses or allowances were included.
A calculator is faster than working by hand. It also reduces mistakes with age bands and ceilings, especially when your age or PR year changes.
What happens to CPF money, and what interest does it earn?
Your contributions are split between your Ordinary Account (OA), Special Account (SA) and MediSave Account (MA). Once you reach 55, a Retirement Account is also set up. Each account earns interest set by the CPF Board.
Account allocation
- Ordinary Account: housing, insurance, investment and education.
- Special Account: retirement savings.
- MediSave Account: hospitalisation and approved medical expenses.
The share that goes to each account depends on your age, so it changes as you move through age bands.
Interest rates and compounding
Each account type has its own interest rate, and the CPF Board reviews them regularly. Extra interest is also paid on a portion of your combined balances. Interest is credited to your accounts and then earns interest itself, so long-term savings grow faster the longer they stay in. Check the CPF Board's page for the current rates.
What are common CPF scenarios in practice?
Most questions come from four situations: high earners, bonuses, citizen and PR differences, and foreign employees. The table summarises the treatment of each group.
| Group | CPF treatment |
|---|---|
| Singapore Citizen | Full rates for the age band from the start of employment. |
| New PR | Graduated rates in the early years, unless both sides apply for full rates. |
| Established PR | Same rates as a citizen of the same age band. |
| Foreign employee on a work pass | No CPF contributions are normally due. |
Earning above the OW ceiling
CPF is calculated only on wages up to the monthly OW ceiling. Pay above that amount attracts no extra CPF, so the contribution stays capped once you reach the ceiling.
Bonuses
Bonuses are Additional Wages. CPF applies at the rates for your age band, subject to the annual AW ceiling. If your regular wages already used a large part of the annual limit, less room is left for bonus CPF. Overtime is usually part of monthly wages; our guide on How to Calculate Overtime Pay in Singapore (MOM Rules) explains how it is worked out.
When no CPF is deducted
If you hold a work pass as a foreign employee, your employer normally does not pay CPF for you, so your net pay is not reduced by it. If you are a citizen or PR and see no CPF on your payslip, ask your employer to explain, and check the CPF Board's rules on which payments count as wages.
Next step
Get the current rates and ceilings from the CPF Board, then enter your wage and age into the CPF Contribution Calculator (Employer & Employee). Compare the net pay with your latest payslip. If a gap remains, look for other deductions or wages that were treated differently.
