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If you have just received your Singapore PR approval, the Central Provident Fund (CPF) is one of the first financial changes you will notice. CPF is Singapore's mandatory savings scheme, and as a new PR, your contributions follow a graduated schedule that starts much lower than what citizens pay. This guide covers the 2026 CPF contribution rates for PRs, how your money is split across three accounts, and what happens when you withdraw — including if you decide to leave Singapore.
The key number: a PR in their third year contributes the same 37% of wages as a Singapore citizen aged 55 and below. In your first year, that figure is only 9%.
What is CPF and why does it matter for new PRs?
CPF is a compulsory savings scheme funded by contributions from both employees and employers. Every working PR and citizen pays into CPF each month, and the money goes into three accounts: the Ordinary Account (OA) for housing, the Special Account (SA) for retirement, and the MediSave Account (MA) for healthcare.
For new PRs, CPF kicks in from your first month of employment after obtaining PR status. Your employer is legally required to make contributions on your behalf, and the employee share is deducted from your salary. If you have been on an Employment Pass or S Pass until now, this is a noticeable change — CPF did not apply to you before.
CPF affects your take-home pay, your ability to buy property in Singapore, your medical coverage, and your retirement savings. It also provides tax relief, since employee CPF contributions are tax-deductible up to the statutory cap.
CPF contribution rates for PRs in 2026: the graduated system
New PRs follow a three-year graduated schedule. Rates start lower in your first year, increase in your second year, and reach the full citizen rate from Year 3 onward.
First year PR rates (GG rates)
In Year 1, the numbers are much lower than you might expect. For employees aged 55 and below, the combined rate is just 9% of wages, compared to 37% for citizens.
Second year PR rates (FG rates)
In Year 2, rates jump noticeably. For those aged 55 and below, the combined rate rises to 24%.
Third year and beyond (full rates, same as citizens)
From your third year of PR status onward, you pay the same CPF rates as Singapore citizens. These are the rates effective from 1 January 2026:
One change for 2026: the Ordinary Wage (OW) ceiling increased to $8,000 per month, up from $7,400 in 2025. If your monthly salary is between $7,400 and $8,000, you will see higher CPF contributions under the new ceiling because that portion of wages now attracts contributions. If you earn above $8,000, the ceiling still caps contributions at the $8,000 mark.
The Annual Wage (AW) ceiling for 2026 remains at $102,000 minus total ordinary wages for the year, which caps CPF contributions on bonuses and variable pay.
What this looks like in dollar terms
If you earn $6,000 per month:
In Year 1, your total CPF contribution is $540 per month (employer pays $240, you pay $300). Your take-home pay after CPF deduction: $5,700.
In Year 2, your total CPF contribution jumps to $1,440 per month (employer pays $540, you pay $900). Your take-home pay: $5,100.
From Year 3 onward, total CPF hits $2,220 per month (employer pays $1,020, you pay $1,200). Your take-home pay: $4,800.
That is a $900 per month difference in take-home pay between Year 1 and Year 3. Plan your budget accordingly.
Can you opt for higher rates earlier?
Yes. You and your employer can jointly apply to CPF Board for higher rates during Year 1 and Year 2:
Under the FG option, your employer pays the full 17% while you stay on graduated employee rates. Under the FF option, both sides pay full citizen rates immediately.
Opting up makes sense if you plan to use CPF for housing soon, since a higher OA balance means more funds for your down payment.
PR vs citizen CPF rates: what is the difference?
There is no difference from Year 3 onward. Here is the comparison for employees aged 55 and below:
During your first two years, your CPF balance grows more slowly, which affects how quickly you can save for a housing down payment. If you are weighing the differences between PR and citizenship, CPF rates are one area where PRs reach full parity with citizens from Year 3.
How your CPF is split: OA, SA, and MA explained
Your total CPF contribution does not sit in a single pot. It is split across three accounts based on your age, and the allocation shifts toward retirement and healthcare as you get older.
Your Ordinary Account (OA) receives the largest share for younger workers. You can use it for housing (HDB purchase, mortgage payments), approved education, and investments under the CPF Investment Scheme. The OA earns 2.5% interest per annum.
Your Special Account (SA) is reserved for retirement. You cannot withdraw until age 55, when it converts into a Retirement Account (RA). The SA earns 4% per annum. At age 55, amounts above the Full Retirement Sum ($220,400 in 2026) can be withdrawn.
Your MediSave Account (MA) funds healthcare needs, including MediShield Life and CareShield Life premiums. It earns 4% per annum. As a PR, you are automatically enrolled in MediShield Life (hospitalisation insurance). If you are aged 30 or above, you are also covered by CareShield Life, which provides a monthly cash payout of $689 in 2026 should you need long-term care. CareShield Life payouts increase each year. The growth rate was raised from 2% to 4% for 2026 to 2030 to help members keep up with rising healthcare costs.
Allocation rates by age (2026)
Notice how the OA allocation drops sharply after age 55, while the MA allocation stabilises at 10.5% from age 50 onward.
CPF members also receive extra interest. If you are below 55, you earn an additional 1% on the first $60,000 of combined balances (capped at $20,000 from OA), bringing effective CPF interest rates up to 5% on SA/MA and 3.5% on OA in 2026. Members aged 55 and above get extra interest of up to 2% on the first $30,000 and 1% on the next $30,000, with effective rates reaching 6% on RA/SA/MA. Interest is credited to your account on 1 January each year.
Using your CPF: housing, medical, and investment
Housing
You can use OA savings to pay the down payment and monthly mortgage for an HDB resale flat or private property. PRs cannot buy new BTO flats (reserved for citizens), and CPF housing grants for PR households differ from citizen grants. See our guide on properties PRs can buy in Singapore for details.
Medical
Your MA automatically covers MediShield Life premiums, giving you basic hospitalisation insurance from day one as a PR. You can also use MA funds for approved outpatient treatments, dental procedures, and vaccinations for yourself and immediate family.
CPF Investment Scheme (CPFIS)
You can invest OA funds above the first $20,000 and SA funds above the first $40,000 through CPFIS. Options include unit trusts, ETFs, government bonds, and shares. Returns are not guaranteed, and losses reduce your CPF balance.
CPF withdrawal rules for PRs in Singapore
This is the part most PRs want to read first, especially if you are not certain Singapore will be your permanent home.
At age 55: Retirement Account creation
When you turn 55, your SA balance is transferred to a newly created Retirement Account (RA). If your RA balance exceeds the Full Retirement Sum (FRS), you can withdraw the excess. Any amount up to the FRS stays in your RA to fund CPF LIFE payouts later.
The three retirement sum tiers for 2026 are:
If you can afford to set aside more, the ERS nearly doubles your monthly payout compared to the FRS. The BRS option is available if you own a property that is pledged to cover the difference.
CPF LIFE from age 65
From age 65, you start receiving monthly payouts under CPF LIFE, Singapore's national annuity scheme. The Standard Plan provides steady payouts for life. The Escalating Plan starts lower but increases by 2% each year, which helps keep pace with inflation. There is also a Basic Plan (a legacy option that may be phased out for new members), where payouts decrease when your CPF balance falls below $60,000. Most PRs choose between Standard and Escalating based on whether they prioritise stable income or inflation protection.
Withdrawing CPF when renouncing PR
This is the question we hear most often. If you decide to leave Singapore permanently and renounce your PR status, you can withdraw your entire CPF balance (all three accounts) in a lump sum. The process works like this:
- Apply to ICA (Immigration and Checkpoints Authority) to formally renounce your PR status.
- Once ICA confirms the renunciation, obtain a verification letter confirming you are no longer a PR.
- Submit a CPF withdrawal application to CPF Board with the verification letter.
- CPF Board processes the withdrawal and pays out the full balance to your designated bank account.
CPF withdrawals upon renouncing PR are not taxed in Singapore. That said, check the tax treatment in your destination country — some jurisdictions may treat the lump sum as taxable income. The process can take several weeks, especially if you have already left Singapore.
If you leave Singapore without renouncing PR, your CPF stays put and continues earning interest. You cannot withdraw until you formally renounce PR or reach the qualifying withdrawal age. For more on what is expected of you as a PR, see our guide on obligations after Singapore PR approval.
Frequently asked questions
When do CPF contributions start for new PRs?
CPF contributions begin from the first month of employment after your PR status takes effect. Your employer handles the payment, and your share is deducted from your salary automatically.
Can my employer pay full CPF rates in my first year?
Yes. You and your employer can jointly apply to CPF Board to opt for higher rates during Year 1 and Year 2. Under the "FF" option, both parties pay full citizen rates immediately.
What happens to my CPF if I leave Singapore without renouncing PR?
Your CPF balance remains in your account and continues earning interest (2.5% on OA, 4% on SA/MA). You cannot withdraw it until you formally renounce your PR status through ICA or reach the qualifying withdrawal age.
Can PRs use CPF for education expenses?
Yes, but only from the OA and only for approved institutions. The CPF Education Scheme allows you to pay tuition fees at local polytechnics and universities. Note that this reduces your OA balance, which may delay your housing plans.
What is the Full Retirement Sum for 2026?
The Full Retirement Sum is $220,400. This is the amount that stays in your Retirement Account at age 55 to fund CPF LIFE payouts. The Basic Retirement Sum is approximately $110,200, and the Enhanced Retirement Sum is $440,800.
Can I nominate beneficiaries for my CPF?
Yes. You can make a CPF nomination online through the CPF Board website to specify who receives your savings in the event of your death. Without a nomination, your CPF is distributed according to Singapore's intestacy laws.
New PR CPF checklist
If you have just obtained PR status, here is a quick checklist to get your CPF on track:
- Notify your employer. Confirm they have your PR effective date so contributions start correctly.
- Check your first payslip. Verify the graduated rate (Year 1) deduction matches the tables above.
- Decide whether to opt up. If you plan to buy property soon, discuss the FG or FF rate option with your employer.
- Set up your CPF online account at my.cpf.gov.sg to track balances and transactions.
- Make a CPF nomination to decide who receives your CPF savings if something happens to you.
- Review your MediShield Life coverage and check if you need Integrated Shield Plan top-ups for wider hospital coverage.
- Budget for the Year 2 and Year 3 jumps. Your take-home pay will drop as graduated rates increase, so plan ahead.
Ready to apply for Singapore PR?
If you are considering applying for Singapore PR and want help putting together a strong application, get in touch with us for a consultation. You can also read our complete PR application guide to understand the process step by step.
For more on life as a PR, see our guides on salary requirements for PR, how salary affects PR approval, life after getting Singapore PR, Re-Entry Permit renewal, and the Singapore citizenship guide.
Disclaimer: CPF contribution rates and policies are set by the CPF Board and may change. The figures in this guide reflect rates effective from 1 January 2026. For the latest information, visit cpf.gov.sg or iras.gov.sg.
