CPF/PROVIDENT FUND

Compulsory Contributions to CPF / Approved Pension or Provident Fund by Singapore Citizens and Singapore Permanent Resident Employees

 

Such contributions must not be more than the statutory contributions under the CPF Act.

 

The ordinary wage ceiling for CPF contribution is $6,000 per month. The total ordinary wages (OW) will be capped at $72,000 (i.e. 12 months x $6,000) per year and the overall income cap on compulsory CPF contributions is $102,000 (i.e. 17 months x $6,000). Additional wages will be capped at an amount equal to the difference between $102,000 and the amount of ordinary wages.

 

The CPF contributions of employees seconded or posted overseas are considered as voluntary contributions and are not claimable.

Do not claim this relief if your employer is participating in the Auto-Inclusion Scheme for Employment Income as your employer has already provided details of your CPF contributions to IRAS.

 

Contributions to CPF by Self-employed Persons

  

If you are a self-employed person (Singapore citizen or Singapore permanent resident), you are required to make compulsory Medisave contribution if you earned a net trade income of more than $6,000 in 2016.

For more details on the Medisave contribution rates, please refer to the CPF Board website at mycpf.cpf.gov.sg.

The total tax relief for compulsory and voluntary CPF contributions will be capped at $37,740.

This relief will automatically be included based on the contribution records transmitted by CPF Board.

 

Voluntary contribution to one’s own Medisave Account

If you were a Singapore Citizen or Singapore Permanent Resident in 2016, you can claim your voluntary cash contribution within the annual CPF contribution cap of $37,740   (i.e. 17 months x $6,000 x 37%) and within the basic healthcare sum, that is specifically directed by you to be paid to your own Medisave Account. Such voluntary contribution must not have been claimed by you as a self-employed person.

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