OhGuide: Singapore Residents' CPF Privileges & Obligations

The CPF is a social security savings plan for both citizens and permanent residents in Singapore where both employer and employee make monthly contributions to this fund. The coverage for this fund includes retirement, healthcare, home ownership and family protection needs.

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Today, CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. In 2008 and 2009, Special, Medisave and Retirement Account savings will earn a guaranteed minimum 4% interest. In addition, the first $60,000 in the combined CPF balances, with up to $20,000 from Ordinary Account, will earn an extra 1% interest.

In the end of the day, it is important to properly plan the use of your CPF savings to ensure sufficient savings for your retirement, a fully paid-up house when you retire, sufficient savings to meet your medical needs in your golden age.

Let's take a look on the following table to see what Citizen and PR's privileges and obligation regarding this comprehensive social security savings plan.

Privileges & Obligations	Singapore Citizen	Singapore PR
Central Provident Fund (CPF) Matters
Central Provident Fund (CPF) contributions	Required	Contribution to the Central Provident Fund (CPF) is required once the foreign employee obtains Permanent Resident status. Permanent Residents will contribute a smaller rate to their CPF accounts on a graduated rate for the first two years, and the same rates as those for Singapore Citizens from the third year onwards.
Special Transfers: CPF top-up Medisave top-up New Singapore Shares (NSS) Economic Restructuring Shares (ERS) Progress Package	Eligible	Not eligible
Medisave contributions	Required	Required