What is CPF?

CPF is a mandatory saving scheme for all Singaporeans.

It is used to purchase a home, pay for medical bills and to be utilized for retirement.

Types of Accounts

Ordinary Account
Special Account
MediSave Account
Retirement Account (Created at age 55)

Accounts are created when first top-ups/contributions are first received.

How it Works

Both employers and employees will contribute into CPF

Contribution rates depends on age

After being contributed to CPF, it is allocated into the 3 accounts

Allocation rates depends on age as well.

Funds are allocated to MA first, followed by SA and lastly OA.

Source: @Didyouknow_sg

How its Calculated

Example:
age 23
Employee salary = $2000
Sum allocated to MA = $2000 x 8% = $160
Sum allocated to SA = $2000 x 6% = $120
Sum allocated to OA = $2000 x 23% = $460

Total CPF contribution = $2000 x 37% = $740
Employee contribution = $2000 x 20% = $400
Employee take home pay = $1600

Refer to CPF board for more info.