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CPF/provident fund relief: For employees only
'CPF relief' is a relief to encourage individuals to save for their retirement.
Who can claimEmployees who are Singaporeans/Singapore Permanent Residents may claim CPF relief on:
a) Compulsory employee CPF contributions or contributions to an approved pension or provident fund.
You cannot claim...
- Voluntary contributions that you made in excess of the compulsory contributions under CPF Act.
- Voluntary contributions made while you are seconded or posted overseas for work.
- CPF contribution on additional wages that exceed the relevant employer CPF cap.
b) Voluntary contribution to your Medisave Account (from 1 Jan 2008).
How much you can claimCompulsory employee CPF contributions
Your claim is subject to a limit on the amount of compulsory employee CPF contributions made in respect of ordinary wages (OW) and additional wages (AW) under the CPF Act.
Ordinary Wages (OW) Wages due or granted wholly and exclusively in respect of an employee's employment in that month and payable before the due date for payment of CPF contributions for that month. Example, food allowance and overtime payments.
OW Ceiling
Maximum monthly ordinary wages subjected to CPF contributions
[td] | Year
| 2005 | 2006 to 31 Aug 2011
| 1 Sep 2011 onwards | Private Sector &
Public Sector: Non Pensionable
| Employer | $5,000 | $4,500 | $5,000 | Employee | $5,000 | $4,500 | $5,000 |
Additional Wages (AW)
Wages that are not granted wholly and exclusively for the month. Example, annual bonus, leave pay and incentive payments.
AW Ceiling
Maximum additional wages subjected to CPF contributions = (Overall Income Cap - Total Ordinary Wages Subjected to CPF)
[td]
Period
| Yearly Overall Income Cap
(Equivalent to 17 months of monthly Ordinary Wage Ceiling) | 01 Jan 2012 onwards | $85,000 | 01 Sep 2011 to 31 Dec 2011 - Last day of employment falls within this period
| $79,333 | 01 Jan 2011 to 31 Aug 2011 - Last day of employment falls within this period
| $76,500 | 01 Jan 2006 to 31 Dec 2010
| $76,500 | | 01 Jan 2005 to 31 Dec 2005 | $85,000 |
Note: This table applies only to Private Sector Employees, Non-Pensionale Employees in Government / Statutory Bodies / Aided Schools and Singapore Permanent Resident (SPR) for employee from their 3rd year onwards
CPF Contribution Rates
Compulsory employee CPF contribution rates for Singapore citizens and permanent residents for the year 2011 :-
[td]| Employee Age | 1 Jan to 28 Feb | 1 Mar to 31 Aug | 1 Sep onwards
| | Employer | Employee | Employer | Employee | Employer | Employee | 50 & below | 15 | 20 | 15.5 | 20 | 16 | 20 | Above 50 - 55 | 11 | 18 | 11.5 | 18 | 12 | 18 | Above 55 - 60 | 8 | 12.5 | 8.5 | 12.5 | 9 | 12.5 | Above 60 - 65 | 5.5 | 7.5 | 6 | 7.5 | 6.5 | 7.5 | Above 65 | 5.5 | 5 | 6 | 5 | 6.5 | 5 |
You may also view compulsory CPF rates for the years 2002 to 2010.
Excess CPF contributions made by you are not tax deductible as they are considered voluntary contributions.
Excess CPF contributions made by employers are taxable, in your hands as they constitute gains or profits from employment. You need to report this under 'employment - others' in your tax form and submit Form IR8A (86KB) and IR8S (64KB) to us.
Examples on how to compute OW and AW subjected to compulsory CPF contributions;
1.Year 2012
[td]Year 2012 - Period of employment 1 Jan 2012 to 31 Dec 2012 | Taxpayer A
| Taxpayer B
| Ordinary Wages (OW) | $50,000 | $70,000 | Additional Wages (AW)
| $45,000 | $19,000 | Total Wages (TW)
| $95,000 | $89,000 | Category
| OW < OW ceiling | OW > OW ceiling | | OW subjected to compulsory CPF contributions | =Lower of Actual OW or OW Ceiling
=$50,000 or ($5,000 x 12mths)
=$50,000 or $60,000
=$50,000
| =Lower of Actual OW or OW Ceiling
=$70,000 or ($5,000 x 12mths)
=$70,000 or $60,000
=$60,000
| | AW subjected to compulsory CPF contributions | =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$45,000 or ($85,000 - $50,000)
=$45,000 or $35,000
=$35,000
| =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$19,000 or ($85,000 - $60,000)
=$19,000 or $25,000
=$19,000
|
2.Year 2011 - Last day of employment before 1 Sep 2011
[td]Year 2011 - Period of employment 1 Jan 2011 to 31 Aug 2011 | Taxpayer C
| Taxpayer D
| Ordinary Wages (OW) | $30,000 | $70,000 | Additional Wages (AW)
| $45,000 | $19,000 | Total Wages (TW)
| $75,000 | $89,000 | Category
| OW < OW ceiling | OW > OW ceiling | | OW subjected to compulsory CPF contributions | =Lower of Actual OW or OW Ceiling
=$30,000 or ($4,500 x 8mths)
=$30,000 or $36,000
=$30,000
| =Lower of Actual OW or OW Ceiling
=$70,000 or ($4,500 x 8mths)
=$70,000 or $36,000
=$36,000
| | AW subjected to compulsory CPF contributions | =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$45,000 or ($76,500 - $30,000)
=$45,000 or $46,500
=$45000
| =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$19,000 or ($76,500 - $36,000)
=$19,000 or $40,500
=$19,000
|
3.Year 2011 - Last day of employment between 1 Sep to 31 Dec 2011
[td]Year 2011 - Period of employment 1 Jan 2011 to 31 Dec 2011 | Taxpayer E
| Taxpayer F
| Ordinary Wages (OW) | $50,000 | $70,000 | Additional Wages (AW)
| $45,000 | $19,000 | Total Wages (TW)
| $95,000 | $89,000 | Category
| OW < OW ceiling | OW > OW ceiling | | OW subjected to compulsory CPF contributions | =Lower of Actual OW or OW Ceiling
=$50,000 or
($4,500 x 8mths) + ($5,000 X 4mths)
=$50,000 or $56,000
=$50,000
| =Lower of Actual OW or OW Ceiling
=$70,000 or
($4,500 x 8mths) + ($5,000 X 4mths)
=$70,000 or $56,000
=$56,000
| | AW subjected to compulsory CPF contributions | =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$45,000 or ($79,333 - $50,000)
=$45,000 or $29,333
=$29,333
| =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$19,000 or ($79,333 - $56,000)
=$19,000 or $23,333
=$19,000
|
4.Year 2006
[td]Year 2006 - Period of employment 1 Jan 2006 to 31 Dec 2006 | Taxpayer G
| Taxpayer H
| Ordinary Wages (OW) | $50,000 | $70,000 | Additional Wages (AW)
| $45,000 | $19,000 | Total Wages (TW)
| $95,000 | $89,000 | Category
| OW < OW ceiling | OW > OW ceiling | | OW subjected to compulsory CPF contributions | =Lower of Actual OW or OW Ceiling
=$50,000 or ($4,500 x 12mths)
=$50,000 or $54,000
=$50,000
| =Lower of Actual OW or OW Ceiling
=$70,000 or ($4,500 x 12mths)
=$70,000 or $54,000
=$54,000
| | AW subjected to compulsory CPF contributions | =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$45,000 or ($76,500 - $50,000)
=$45,000 or $26,500
=$26,500
| =Lower of Actual AW or AW Ceiling (Overall Income Cap OW Subjected to CPF)
=$19,000 or ($76,500 - $54,000)
=$19,000 or $22,500
=$19,000
|
Voluntary contributions to Medisave accountYour claim is limited to the lowest of the following: - Voluntary cash contribution directed specifically to Medisave Account.
- Annual CPF contribution cap for the year less Mandatory Contribution (MC).
MC refers to compulsory contribution by employee and his employer. - Prevailing Medisave Contribution Ceiling (MCC), less the balance in Medisave Account before the voluntary cash contribution.
- Medisave Contribution Ceiling (MCC)
[td]With effect from
| Medisave Contribution Ceiling | 1 Jul 2011 | $41,000 | 1 Jul 2010 | $39,500 | 1 Jul 2009 | $37,000 | 1 Jul 2008 | $34,500 | Prior to 1 Jul 2008 | $33,500 |
Illustrations on Tax Relief for Voluntary Contributions to Medisave Account
Example : Employee making voluntary contribution to Medisave Account
[td]A is an employee who is 30 years old | Year 2011 | Year 2012 | Total Salary | $80,000 | $80,000 | Compulsory CPF contributions made by A's employer | - Jan -Feb 11
15% x $76,500 x 2/12
= $1,912.50 Mar to Aug 11
15.5% x $76,500 x 6/12
= $5,928.75 Sep to Dec 11
16% x $79,333 x 4/12
= $4,231.10
| 16% x $80,000
=$12,800 | Compulsory CPF contributions made by A | (20% x$76,500 x 8/12) +
(20% x $79,333 x 4/12)=$15,488.90
| 20% x $80,000
=$16,000 | Total Contribution | $27,561.25
| $28,800
| Tax Relief on voluntary cash contribution made by A's to his own Medisave account | $3,038.75 Annual CPF contribution cap :
$30,600 - $27,561.25
= $3,038.75 | $1,800
Annual CPF contribution cap :
$30,600 - $28,800
= $1,800 |
How to claimEnter your claim for your compulsory employee CPF contributions under 'CPF/Provident fund' in your tax form.
If your employer is one of the participants of the auto-inclusion scheme, you do not need to claim this relief. We will automatically grant you this relief based on the information send to us by your employer.
You do not need to make any claim for your voluntary contributions to your Medisave Account. This relief will be allowed automatically based on information provided by CPF board.
Find out more about how to submit your tax form.
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