The moment your PR status takes effect, CPF starts coming out of your pay. Year one is light: if you are 55 or below, 9% of your wage goes in, 5% from you and 4% from your employer. Year two ramps to 24% (15% from you, 9% employer). From year three you pay the full citizen rate of 37% (20% from you, 17% employer), on monthly wages up to the $8,000 Ordinary Wage ceiling that took effect on 1 January 2026. The ramp is automatic and counts from the calendar dates of your PR status, not from when you started a job. This guide covers the exact 2026 rate tables for each PR year, how the money lands across your accounts, whether you can opt to pay full rates earlier, the top-up reliefs that cut your income tax, and what happens to the balance if you give up PR and leave.
As a foreigner on an Employment Pass or S Pass, you and your employer paid zero CPF. That ends on the day your PR is approved. CPF is mandatory for every PR who works in Singapore and earns more than $50 a month, exactly as it is for citizens. Your employer cannot opt out, and neither can you.
The trade is real money out of your take-home pay in exchange for forced savings you mostly cannot touch until much later. CPF is not a tax. It is your money, held in your own accounts, earning 2.5% to 4% a year. It pays for three things: retirement income, healthcare, and housing. Most PRs feel the pinch on the payslip first and only later see the upside, which is a near-guaranteed savings pool that funds an HDB flat, MediShield Life premiums, and a monthly payout from age 65.
The one concession PRs get is a two-year softer landing. The government does not hit you with the full 37% from day one. Instead, new PRs pay graduated (lower) rates for the first two years so your salary does not drop off a cliff overnight. After that you are on the same rates as everyone else.
New PRs follow a three-step schedule. The clock runs from the calendar dates of your PR status. Your first year is the day you become a PR until the last day of the same month one year on; year two is the next 12 months; full rates start from the first day of the month after your second PR anniversary. So a PR granted on 15 March 2026 is in year one until end-March 2027, year two until end-March 2028, and on full rates from 1 April 2028.
The figures below are for the standard scheme, where both you and your employer contribute at graduated rates. This is called G/G (graduated employer, graduated employee). They apply to workers aged 55 and below on monthly wages above $750; below that wage your share is reduced or nil while the employer still pays.
Notice how the ramp shifts the burden onto you over time. In year one the split is almost even. By year two your share (15%) is already larger than the employer's (9%). From year three the employer pays 17% and you pay 20%, the standard citizen split. Plan your budget around the year-two jump, because that is the year your take-home pay falls the most.
| PR stage | Employer share | Employee share | Total |
|---|---|---|---|
| Year 1 | 4% | 5% | 9% |
| Year 2 | 9% | 15% | 24% |
| Year 3 onwards | 17% | 20% | 37% |
Once you clear the two-year ramp, your CPF rate is identical to a citizen's and steps down as you get older. From 1 January 2026 the rates for workers aged above 55 to 65 went up by 1.5 percentage points, the latest move in a multi-year plan to raise older workers' CPF closer to younger workers' rates. The 55-and-below rate stays at 37%.
These rates apply to your Ordinary Wages up to the $8,000 monthly ceiling. Bonuses and other irregular pay are capped separately by the Additional Wage ceiling, explained further down. To see the exact split on your own salary, the CPF contribution calculator does the month-by-month maths, and the take-home salary calculator shows what reaches your account after CPF.
| Age of employee | Employer share | Employee share | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Yes, but only by choice and only in a limited way. The graduated ramp lowers your CPF in years one and two, which also means less goes into your retirement and housing pot during those years. If you would rather build the balance faster, there are two options, both requiring a joint application with your employer to the CPF Board.
The cleaner option is to jointly apply to pay full rates (the F/F scheme) from the start, so both you and your employer contribute at the citizen rate of 17% plus 20% immediately. The other option is the F/G scheme, where your employer pays the full 17% but you keep contributing at the graduated employee rate. F/G is the employer's call as much as yours, since it costs them more.
Most PRs leave the default graduated rates alone, because the higher take-home pay in years one and two is useful while you settle in. Opting up makes sense mainly if you are close to buying property and want a fatter OA, or you want the extra retirement compounding and can afford the smaller paycheck. There is no way to pay less than the graduated rate. Asking your employer to under-declare your wage to cut CPF is illegal and exposes both of you to penalties.
Switching employers does not reset your PR clock. The graduated ramp tracks your PR dates, so a job change in year two still puts you on full rates from the start of your third PR year, no matter how new you are at the new company. Your CPF year stays where your PR status says it is.
What does reset is any opted-up arrangement. If you and your former employer had jointly applied to pay full rates early under the F/F or F/G scheme, that application was tied to that employer. A new employer is not bound by it, so contributions fall back to the default graduated rate unless you and the new employer file a fresh joint application. If paying full rates early was deliberate, raise it during onboarding rather than discovering the drop on your first payslip.
Your accounts and balances move with you regardless. CPF is yours, not your employer's, so the OA, SA and MA you have built carry straight over; only the contribution rate for new pay is affected.
Your total contribution does not sit in one pot. It is split across the OA, SA and MA, and the split depends on your age, not your PR year. For a worker aged 35 and below, roughly 62% of the contribution goes to the OA, about 16% to the SA, and about 22% to the MA. As you age, less goes to the OA and more is steered toward retirement and healthcare.
The OA earns 2.5% a year. The SA and MA earn the higher rate, which is 4% a year for the quarter from 1 April to 30 June 2026, with that 4% floor extended to 31 December 2026. On top of that, members below 55 earn an extra 1% on the first $60,000 of their combined balances; members aged 55 and above earn an extra 2% on the first $30,000 and an extra 1% on the next $30,000, so early balances compound faster than the headline rate suggests.
One point that trips up older new PRs: the Special Account was closed in January 2025 for members aged 55 and above, with those savings moved to the Retirement Account and Ordinary Account. If you become a PR at 55 or older, you will not have an SA. Anyone under 55 still has the full OA, SA and MA setup.
The 2.5% to 4% your CPF earns is a floor, not a ceiling. Once your balances are large enough, you can move part of them into shares, unit trusts and other approved products through the CPF Investment Scheme (CPFIS). PRs get the same access to this as citizens, with no extra waiting period beyond having the money.
The catch is the buffer the rules force you to keep. You can only invest the part of your Ordinary Account above the first $20,000, and the part of your Special Account above the first $40,000. Those first dollars stay put because they earn the extra 1% interest on the first $60,000 of your combined balances, so the government keeps them out of the market on purpose. As a new PR your OA may take a year or two to clear $20,000, so for most people CPFIS is something to grow into rather than rush.
The OA also has product limits: at most 35% of your investible OA can go into shares and 10% into gold. CPF announced a new, simpler and lower-cost investment scheme launching in 2028 to sit alongside CPFIS, so the menu is set to change. Treat any return above the CPF floor as a reward for risk, not a sure thing. If you want to compare the floor against market returns first, the compound interest calculator and the CPF Investment Scheme guide are the place to start.
All the contributions add up to one thing in the end: a monthly income for life. At 55 a Retirement Account opens and your savings are set aside against a retirement sum, which decides the size of your payout. The more you set aside, the more you draw from 65 under CPF LIFE, the national annuity that pays out for as long as you live. PRs are in exactly the same scheme as citizens.
For members turning 55 in 2026, the three reference points are the Basic Retirement Sum of $110,200, the Full Retirement Sum of $220,400, and the Enhanced Retirement Sum of $440,800. The ERS was raised on 1 January 2026 to double the current year's FRS, giving members who want a larger payout more room to top up. CPF's own estimates, on the Standard Plan and a 4% interest assumption, put the monthly payout from 65 at roughly $950 at the BRS, about $1,780 at the FRS, and around $3,440 at the ERS.
The practical takeaway for a PR: the years you spend on graduated rates are years your Retirement Account starts later and lighter than a lifelong citizen's. You have two levers to close that gap, paying full rates earlier or topping up later, both covered above. To see what your own balance could turn into, the CPF LIFE payout calculator models the monthly figure, and the CPF LIFE plans compared shows how Standard, Basic and Escalating differ.
| Retirement sum | Amount to set aside at 55 | Estimated monthly payout from 65 |
|---|---|---|
| Basic Retirement Sum (BRS) | $110,200 | ~$950 |
| Full Retirement Sum (FRS) | $220,400 | ~$1,780 |
| Enhanced Retirement Sum (ERS) | $440,800 | ~$3,440 |
Becoming a PR does more than start CPF deductions. It enrols you in two national health schemes that foreigners on a pass cannot join. MediShield Life, the basic hospitalisation insurance, covers you for life regardless of age or pre-existing conditions, and its premiums are paid from your MediSave Account. CareShield Life, the long-term disability scheme, works the same way for severe disability payouts, with premiums also drawn from MediSave.
This is part of why MediSave matters from day one, even on year-one graduated rates. The slice of every contribution that lands in MediSave is not idle savings; it is funding cover that would cost far more to buy privately, and it is one of the clearest upsides of the CPF trade for a new PR. If you later want cover above the public ward level, an Integrated Shield Plan sits on top of MediShield Life, with the MediShield Life portion still paid from MediSave. Weigh that choice in Integrated Shield versus MediShield Life.
CPF is not charged on unlimited income. Two ceilings cap it. The Ordinary Wage ceiling limits the monthly salary CPF is payable on. From 1 January 2026 it is $8,000 a month, up from $7,400. Earn $9,500 and CPF is worked out only on the first $8,000; the rest attracts nothing.
The Additional Wage ceiling limits CPF on irregular pay such as bonuses and commissions. It is calculated as $102,000 minus the Ordinary Wages already subject to CPF that year. That $102,000 is the annual salary ceiling and did not change for 2026. The practical effect: if your monthly pay is near $8,000, most of the annual room is used up by salary, so little of your bonus attracts CPF. On a lower salary, more of your bonus is contributed.
These ceilings apply the same way whether you are a year-one PR or a tenth-year citizen, just on top of whatever rate your PR stage sets. For the deeper mechanics of the ceilings, see the CPF contribution rates guide.
PRs are taxed on Singapore income the same as citizens, and the same CPF top-up reliefs apply. Two are worth knowing as a PR building up balances from a standing start.
Cash top-ups to your own Special Account (or Retirement Account if you are 55+) under the Retirement Sum Topping-Up scheme earn you up to $8,000 of tax relief a year, plus up to another $8,000 for topping up a parent's, spouse's, sibling's or grandparent's account. The money earns the 4% floor rate and goes toward your retirement payout. The catch: it is locked for retirement, so only top up cash you will not need before then.
The Supplementary Retirement Scheme is the more flexible cousin. As a PR you can contribute up to $15,300 a year, the same cap that applies to citizens (foreigners get a higher $35,700 cap), every dollar of which is deducted from your taxable income, and you can invest the funds rather than leave them idle. SRS withdrawals are taxed, but only 50% of the amount is taxable if you withdraw on or after the statutory retirement age that applied when you made your first contribution. The exact caps, the 50% concession and the penalty rules are set by IRAS, so check the current figures before you contribute. Compare the two routes in SRS versus CPF top-up, and size the tax saving with the income tax calculator before deciding. For how top-ups fit your wider plan, the CPF pillar guide lays it out.
CPF balances belong to you, so giving up PR does not forfeit them. If you renounce your PR, leave Singapore, and have no intention of returning to work or live here, you can apply to withdraw your entire CPF balance, including OA, SA and MA. You can only apply six months after you have left and once you have renounced (or are in the process of renouncing) your status. The CPF Board says processing takes about 12 weeks on average.
If you keep the account open instead of closing it, your money keeps earning normal CPF interest until the account is closed. Once closed after renunciation, the remaining balance stops earning CPF interest and instead earns a much lower commercial-style rate as a transitory measure until 31 March 2027.
One thing to weigh before withdrawing everything: if you used CPF to buy property, the principal you withdrew plus accrued interest must be refunded to your CPF when you sell, and that money is part of what you can eventually take out. And if you ever come back to take up PR or citizenship again, you must refund the full amount you previously withdrew. So withdrawing on the way out is not always the clean exit it looks like.
The mechanics are straightforward once approved. CPF pays the balance to a local bank account by GIRO, or overseas by telegraphic transfer to your foreign bank. Closing the account also ends any CPF LIFE coverage, so a younger PR who withdraws everything gives up the lifelong payout they would otherwise have drawn from 65. If you hold a CPF Investment Scheme portfolio, those holdings have to be sold or transferred out separately before the account closes. None of this is reversible cheaply, so for PRs who may return it is often worth leaving the account open and earning interest rather than cashing out.
If you are 55 or below and earn above $750 a month, total CPF is 9% in year one: 5% from your pay and 4% from your employer, on monthly wages up to the $8,000 Ordinary Wage ceiling. This is the standard graduated (G/G) rate.
From the third year of your PR status. The first day of the month after your second PR anniversary, your rate jumps to the full 37% (20% employee, 17% employer) for ages 55 and below. The ramp counts from your PR approval dates, not your job start date.
No. CPF is compulsory for every PR who works in Singapore and earns more than $50 a month. You cannot opt out, and you cannot legally pay less than the graduated rate. You can only opt to pay more by jointly applying with your employer to use full rates earlier.
Yes. The accounts and rates are identical once you have CPF. The Ordinary Account earns 2.5% a year, and the Special, MediSave and Retirement Accounts earn the 4% floor rate (in effect through 31 December 2026), with extra interest on the first $60,000 of combined balances.
Yes. Once you renounce PR, leave Singapore with no intention to return, and wait six months, you can withdraw your full CPF balance. If you used CPF for property, the principal plus accrued interest is refunded into your account on sale and forms part of what you withdraw. Coming back later means refunding what you took out.
PRs are taxed on Singapore income on the same resident rates as citizens. What CPF adds is access to tax reliefs: up to $8,000 of relief for topping up your own retirement account (and up to $8,000 more for a family member), and up to $15,300 a year into SRS, all deductible from taxable income.
G/G is the default: both you and your employer pay graduated (lower) rates in years one and two. F/G means your employer pays full rates while you stay on graduated rates. F/F means both pay full citizen rates from the start. F/G and F/F both need a joint application with your employer to the CPF Board.
The graduated ramp follows your PR dates, not your employer, so changing jobs does not reset your CPF year and you still reach full rates from the start of your third PR year. But if you had jointly opted to pay full rates early with your old employer, that arrangement does not carry over; you fall back to graduated rates unless you file a fresh joint application with the new employer. Your account balances move with you regardless.
Yes, PRs get the same CPF Investment Scheme access as citizens. You can invest Ordinary Account savings above the first $20,000 and Special Account savings above the first $40,000; those first dollars must stay put because they earn the extra 1% interest. The OA also caps share investments at 35% and gold at 10% of the investible amount. As a new PR it can take a year or two before your OA clears the $20,000 threshold.
Yes. PRs are in the same CPF LIFE scheme as citizens. At 55 a Retirement Account opens, and from 65 you draw a monthly payout for life. For members turning 55 in 2026, the Basic Retirement Sum is $110,200, the Full Retirement Sum $220,400 and the Enhanced Retirement Sum $440,800, with CPF estimating monthly payouts of roughly $950, $1,780 and $3,440 respectively on the Standard Plan.
Yes. PR status enrols you in MediShield Life, the basic hospitalisation insurance that covers you for life including pre-existing conditions, and CareShield Life for severe long-term disability. Premiums for both are paid from your MediSave Account, which is why MediSave matters even on year-one graduated rates. You can add an Integrated Shield Plan on top for higher ward cover.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.