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Singapore's provident fund system

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CPF (Central Provident Fund) Chinese can be translated into a central provident fund. It is a social security savings plan established by the Singapore government for all Singapore citizens and permanent residents. Each participant is required to pay monthly.

The CPF has a total of three accounts, an Ordinary Account (OA) , a Special Account (SA), and a Medisave Account .


How much does it cost to go to the CPF account each month?

After taking part in the work, local Singaporeans need to contribute 20% of their monthly salary to the CPF account , and the employer will contribute an additional 17% of the monthly salary to the employee's CPF account . For example, after graduating from Mike University, he joined a foreign company with a monthly salary of S$3,000. Then Mike needs to contribute 600 SGD to his CPF account each month. Mike actually gets a salary of S$2,400 per month. At the same time, the employer will make an additional 510 SGD to contribute to Mike's CPF account, plus Mike's own contribution of S$600. Mike's CPF account this month will increase by S$1110.


What is the purpose of each CPF account?

Ordinary account: mainly used for daily needs, can be used for housing, investment, education and so on.

Buying a house: A general account can be used to pay for the purchase of a property. The maximum extractable amount is determined by the price of the house purchased and the age of the house and the age of the youngest buyer.

Investment: CPF has an investment plan that can be used to invest in CPF-authorized CPFIS-OA, a financial institution authorized by CPF, to purchase risky financial products, but even if it is profitable, it will enter the CPF account and cannot be withdrawn.

Education: CPF can be used for the education expenses of individuals and spouses or children, that is, to withdraw the OA account in the form of a loan (pay interest and repay after the completion of the study), pay the spouse, children or their own full-time education tuition.

Medical account: mainly used for medical needs, can be used to pay hospital bed fees, outpatient fees, surgery fee treatment fees and health care fees for certain approved hospitals. It can also be used to purchase joint medical inpatient support jointly launched by government and commercial insurance companies to achieve 100% reimbursement for hospitalization and surgery.

Special account: mainly used for the needs of the elderly. After retirement, the interest can be taken out monthly as the cost of living for the elderly.


CPF is a compulsory provident fund system of the Singapore government, equivalent to five insurance and one gold in the country. If you are fortunate enough to apply for Singapore permanent residents or Singapore citizens, you must plan for housing, medical care, and pensions in strict accordance with the provident fund system.