The Central Provident Fund (CPF) is a social security savings scheme in Singapore that aims to help meet the retirement, healthcare, and housing needs of its members. All employees, both local and foreign, who are Singapore Citizens or Permanent Residents are required to contribute a portion of their salary to their CPF accounts throughout their working lives. Understanding how CPF contributions work is essential for individuals planning for their financial future.

There are three components to CPF contributions: Ordinary Account (OA), Special Account (SA), and Medisave Account (MA). The percentage of an employee’s salary that goes into each account differs based on their age and income level. For example, for those below 55 years old, the contribution rate for OA is 23%, SA is 6%, and MA is 8%. CPF contributions not only help save for future needs but also earn interest rates at a guaranteed minimum of 2.5% for OA, 4% for SA, and 4% for MA. Additionally, employers are required to contribute a portion of their employees’ salaries to their CPF accounts, making it a joint effort to build financial security for the future.

Knowing the basics of CPF contributions is crucial for individuals to properly plan and manage their retirement and healthcare needs. It is a valuable tool that provides a structured approach to help individuals save for their long-term goals. Keeping track of your CPF