As Singaporeans look to secure their financial future, understanding the Central Provident Fund (CPF) system remains essential. As a mandatory social security savings scheme, CPF plays a crucial role in retirement planning, home ownership, and healthcare financing. With notable updates rolled out in 2025, staying informed is key for all residents — whether you’re an employee, employer, self-employed, or platform worker.
This comprehensive 2025 CPF guide outlines contribution rates, salary ceilings, retirement sums, and new policy enhancements, empowering you to make informed financial decisions for the years ahead.
Why CPF Matters in 2025
CPF isn’t just a payroll deduction — it’s a robust system designed to ensure retirement adequacy, subsidise healthcare needs, and support home ownership. In 2025, the CPF system continues to evolve in response to longer life expectancies, inflation, and shifts in the job market. Recent updates aim to boost retirement savings, particularly for senior workers and platform workers, and to better align CPF limits with rising wages.
By understanding the updated CPF policies for 2025, you’ll be better equipped to optimise your savings and take advantage of new opportunities, such as enhanced top-up schemes and higher contribution ceilings.
CPF Contribution Rates for 2025: Who Pays How Much?
For Employees (Aged 55 and Below):
| Party | Contribution Rate |
|---|---|
| Employer | 17% |
| Employee | 20% |
| Total | 37% |
Tiered Rates for Senior Workers:
| Age Group | Employer | Employee | Total |
|---|---|---|---|
| 55–60 | 15.5% | 17% | 32.5% |
| 60–65 | 12% | 11.5% | 23.5% |
| 65–70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Note: 2025 sees an increase of 0.5% (employer) and 1% (employee) contributions for those aged 55–65 compared to 2024.
New Permanent Residents (PRs):
PRs in their first and second year continue to receive graduated contribution rates — this phased approach remains unchanged in 2025.
Self-Employed and Platform Workers:
Platform workers born on or after 1 January 1995 are now subject to phased increases in CPF contributions, aligning with the employed workforce by 2029. This shift helps bolster their retirement and healthcare savings.
CPF Contribution Ceilings: Understanding the Caps
Monthly Salary Ceiling (Ordinary Wage Ceiling):
- Effective 1 January 2025: S$7,400 (up from S$6,800 in 2024)
- Planned increase to S$8,000 by 2026
This means CPF contributions only apply to the first S$7,400 of your monthly salary in 2025.
Annual Salary Ceiling (Overall):
- Remains at S$102,000
This overall ceiling limits the total CPF contributions (from both Ordinary Wages and Additional Wages like bonuses) an individual can receive in a year.
Additional Wage (AW) Ceiling Formula:
S$102,000 – Total Ordinary Wages (OW) subject to CPF for the year.
Annual CPF Contribution Limit:
- Remains at S$37,740 for tax relief and voluntary contributions.
For more on CPF limits and formulas, visit CPF’s official calculator.
CPF Retirement Sums (2025): Planning for Your Golden Years
For those turning 55 in 2025:
| Retirement Sum Type | Amount (S$) |
|---|---|
| Basic Retirement Sum (BRS) | 106,500 |
| Full Retirement Sum (FRS) | 213,000 |
| Enhanced Retirement Sum (ERS) | 426,000 (raised from 3x to 4x BRS) |
Why It Matters:
The higher ERS cap allows individuals to save more voluntarily and receive larger monthly payouts under CPF LIFE. The CPF Board has also projected annual increases of about 3.5% in retirement sums from 2023 to 2027, ensuring savings keep pace with inflation.
Estimated Monthly CPF LIFE Payouts (Standard Plan):
| Retirement Sum | Monthly Payout (From age 65) |
|---|---|
| BRS | ~S$900–S$1,000 |
| FRS | ~S$1,750–S$1,900 |
| ERS | ~S$2,600–S$2,900 |
Actual payouts depend on gender, premium amount, and CPF LIFE plan chosen.
Other Significant CPF Changes and Enhancements in 2025
Closure of Special Account (SA) for Members Aged 55 and Above
From the second half of January 2025, the SA will be closed for members aged 55 and above:
- SA savings up to the FRS will be transferred to the Retirement Account (RA), earning 4–6% interest.
- Remaining savings (above FRS) will be moved to the Ordinary Account (OA) and become withdrawable.
- SA investments under CPFIS will continue, but new investments must come from the OA.
Matched Retirement Savings Scheme (MRSS) Enhancements
| Feature | 2024 | 2025 |
|---|---|---|
| Annual Matching Grant Cap | S$600 | S$2,000 |
| Age Cap | 55–70 | Removed |
| Lifetime Cap | S$3,000 | S$20,000 |
These enhancements encourage more top-ups from family members or individuals, helping low-balance members build sufficient retirement savings.
Basic Healthcare Sum (BHS) for 2025
- S$75,500 for those turning 65 in 2025
The BHS is the maximum Medisave balance for healthcare needs and is adjusted annually for younger cohorts.
Silver Support Scheme (SSS) Enhancements
- Payouts increased by 20%
- Household income threshold raised to S$2,300
Workfare Income Supplement (WIS) Enhancements
- Qualifying monthly income cap raised to S$3,000
- Annual payouts for senior low-wage workers increased to S$4,900
These measures strengthen support for lower-income and older workers.
CPF Allocation and Interest Rates
Allocation (Under 55):
| Account | Allocation (%) |
|---|---|
| Ordinary Account (OA) | 23–25% |
| Special Account (SA) | 6–11.5% |
| Medisave Account (MA) | 8–10.5% |
Note: Allocation changes based on age.
Interest Rates (as of 2025):
- OA: 2.5% p.a.
- SA, MA, RA: 4.0% p.a.
- Extra 1% on the first S$60,000 of combined CPF balances (capped at S$20,000 for OA).
- Additional 1% for members aged 55+ on their first S$30,000.
For more on CPF interest and allocation, refer to CPF Board’s official interest rates page.
Actionable Steps for Readers
- Check Your CPF Statement: Use the CPF app or website to view contributions, projected payouts, and account balances.
- Revisit Retirement Plans: Consider topping up CPF accounts to enjoy higher interest and secure larger CPF LIFE payouts.
- Utilise MRSS and ERS: Voluntary top-ups can lead to tax relief and greater long-term security.
- Seek Advice: Consider speaking with a CPF-accredited financial advisor if you’re unsure how to optimise your CPF strategy.
Conclusion: Stay Ahead with Proactive Planning
Singapore’s CPF system is constantly evolving to meet the changing needs of its population. In 2025, increased contribution ceilings, enhanced support for older and lower-income workers, and expanded retirement savings opportunities underscore the government’s commitment to improving retirement adequacy for all.
To fully benefit from these enhancements, take charge of your financial journey. Understand the new CPF landscape, review your retirement goals, and start planning today — because a well-prepared future begins with informed decisions today.