CPF and its purposes

The Central Provident Fund, or CPF, was set up to play one of the most important functions in Singapore’s social security system.

The main purpose of CPF is to ensure that Singaporeans have enough money for retirement, to pay for medical bills when they fall ill, and to buy a home with. 

CPF also ensures that the home ownership rate in Singpaore continues to be relatively high, since it can only be used to pay for home purchases and not rent.

Foreigners on Singapore work passes such as Employment Pass, S Pass, etc. are exempted from CPF contributions in Singapore.

CPF contributions are payable once a foreign employee obtains Singapore Permanent Resident (SPR) status. To help the SPR employee adjust to the lower take-home pay, both the employer and employee will contribute CPF at graduated rates for the first two years.

Some useful links: