CPF (Central Provident Fund) Relief for Employees

CPF Relief is given to encourage individuals to save for their retirement. The amount of CPF Relief is capped to ensure that CPF is not used as a tax shelter.

Employees Qualifying for CPF Relief

Employees who are Singapore Citizens or Singapore Permanent Residents may claim CPF Relief.

Qualifying and Non-Qualifying Contributions for CPF Relief

Contributions that Qualify for CPF Relief

  1. Compulsory employee CPF contributions under the CPF Act or contributions to an approved pension or provident fund;
  2. Voluntary contributions to your Medisave Account.

Please note that there will be a personal income tax relief cap of $80,000, which will apply from the Year of Assessment (YA) 2018. This cap applies to the total amount of all tax reliefs claimed, including any relief on compulsory/ voluntary CPF contributions  made on or after 1 Jan 2017.

There will be no refund for accepted voluntary CPF contributions. As such, taxpayers who make voluntary CPF contributions on or after 1 Jan 2017 should take note of the overall personal income tax relief cap. You should evaluate whether you would benefit from tax relief on your voluntary CPF contributions, and make an informed decision accordingly.

Contributions that do Not Qualify for CPF Relief

  1. Voluntary contributions made in excess of the compulsory contributions under the CPF Act;
  2. CPF contributions on additional wages that exceed the CPF cap on wages from related employers (employed concurrently by two or more related employers in a year); and
  3. CPF contributions made in respect of your overseas employment (i.e. while you are seconded or posted overseas for work).

Amount of CPF Relief

CPF Relief is capped by the amount of compulsory employee CPF contributions made on Ordinary Wages and Additional Wages under the CPF Act.

Ordinary wages are wages due or granted for employment. They include allowances (e.g. food allowance and overtime payments) earned by an employee in the month. Ordinary wages must be paid before the due date for payment of CPF contributions for that month.

Additional wages are wage supplements which are not granted wholly and exclusively for the month. These include your annual bonus and leave pay.

You can only claim CPF Relief if your employee CPF contributions have not exceeded the Ordinary Wage Ceiling and Additional Wage Ceiling.

Ordinary Wage (OW) Ceiling

From 1 Sep 2011 to 31 Dec 2015

$5,000 per month

From 1 Jan 2016

$6,000 per month

Additional Wage (AW) Ceiling

From 1 Jan 2012 to 31 Dec 2015

$85,000 less Total Ordinary Wages subject to CPF
($85,000 = 17 months x $5,000)

From 1 Jan 2016 

$102,000 less Total OW subject to CPF
($102,000 = 17 months x $6,000)

For more information on OW Ceiling and AW Ceiling, please refer to CPF Board's website.

Excess / Voluntary CPF Contributions

When employee or employer CPF contributions have exceeded the OW Ceiling or AW Ceiling, the excess amount is considered voluntary CPF contributions.

Excess Employee CPF Contributions

These do not qualify for CPF Relief.

Excess Employer CPF Contributions

These are taxable as your employment income because they constitute gains or profits from employment. You need to report this under 'Employment - Others' in your tax form.
Excess / Voluntary Contributions while on Secondment or Overseas

If the excess / voluntary amount of employer CPF contributions is made while you are seconded or posted overseas for work, this amount is not taxable.

Sample Computations of CPF Relief

Mr Lim is 40 years old. His compulsory employee CPF contribution rate is 20%. He received the following income in 2016:

Employment Period: 1 Jan 2016 to 31 Dec 2016Ordinary Wage (OW)Additional Wage (AW)

Total wages for 2016

$5,000 x 12 months = $60,000

$45,000

OW & AW Ceiling

$6,000 x 12 months
= $72,000

$102,000 - (A)
= $102,000 - $60,000
= $42,000

Wages subject to compulsory CPF contributions

$60,000 (A)
The OW ($60,000) is subject to compulsory CPF contributions as the total OW for the year has not exceeded the OW Ceiling ($72,000).

$42,000
The AW ($45,000) exceeds the AW Ceiling ($42,000). The AW subject to compulsory CPF contribution is capped at $42,000 .

Mr Lim's CPF Relief for the Year of Assessment (YA) 2017 is computed as follows:

CPF Relief on

Amount

OW

$60,000 x 20% = $12,000

AW

$42,000 x 20% = $8,400

Total CPF Relief allowed for YA 2017

= $20,400 ($12,000 + $8,400)

Mr Heng is 61 years old. His compulsory employee CPF contribution rate is 7.5%. He received the following income in 2016:

Employment Period: 1 Jan 2016 to 31 Dec 2016Ordinary Wage(OW)Additional Wage (AW)

Total wages for 2016

$7,000 x 12 months = $84,000

$10,000

OW & AW Ceiling

$6,000 x 12 months
= $72,000

$102,000 - (A)
= $102,000 - $72,000
= $30,000

Wages subject to compulsory CPF contributions

$72,000 (A)
The OW ($84,000) has exceeded the OW Ceiling ($72,000). OW subject to compulsory CPF contribution is capped at $72,000 .

$10,000

The AW ($10,000) is subject to compulsory CPF contributions as the AW has not exceeded the AW Ceiling ($30,000).

Mr Heng's CPF Relief for YA 2017 is computed as follows:

CPF Relief on

Amount

OW

$72,000 x 7.5% * = $5,400

AW

$10,000 x 7.5% * = $750

Total CPF Relief allowed for YA 2017

= $6,150 ($5,400 + $750)

*Mr Heng is subject to 7.5% employee CPF contribution rate as he is between 60 to 65 years old.

Ms Cheong is 29 years old. Her compulsory employee CPF contribution rate is 20%. Her last date of employment was 30 Nov 2016. She received the following income in 2016:

Employment Period:

1 Jan 2016 to 30 Nov 2016
Ordinary Wage (OW)

 

Additional Wage (AW)

 

Total wages for 2016

$7,000 x 11 months = $77,000

$45,000

OW & AW Ceiling

Jan to Nov 2016
= $6,000 x 11 months
=$66,000 (A)

$102,000 - (A)
= $102,000 - $66,000
= $36,000

Wages subject to compulsory CPF contributions

$66,000 (A)
The OW ($77,000) has exceeded the OW Ceiling ($66,000). The OW subject to compulsory CPF contribution is capped at $66,000 .

$36,000
The  AW ($45,000) has exceeded the AW Ceiling ($36,000). The AW subject to compulsory CPF contribution is capped at $36,000 .

Ms Cheong's CPF Relief for YA 2017 is computed as follows:

CPF Relief on

Amount

OW

$66,000 x 20% = $13,200

AW

$36,000 x 20% = $7,200

Total CPF Relief allowed for YA 2017

= $20,400 ($13,200 + $7,200)

Mr Tan is 35 years old. His compulsory employee CPF contribution rate is 20%. His last date of employment was 31 Aug 2016. He received the following income in 2016:

Employment Period:

1 Jan 2016 to 31 Aug 2016
Ordinary Wage (OW)

 

Additional Wage (AW)

 

Total wages for the year 2016

$7,000 x 8 months = $56,000

$19,000

OW & AW ceiling

Jan to Aug 2016

= $6,000 x 8 months

= $48,000

$102,000 - (A)

= $102,000 - $48,000

= $54,000

Wages subject to compulsory CPF contributions

$48,000 (A)

The OW ($56,000) has exceeded the OW Ceiling ($48,000). The OW subject to compulsory CPF contribution is capped at $48,000 .

$19,000

The AW ($19,000) is subject to compulsory CPF contributions as it has not exceeded the AW Ceiling ($54,000).

His CPF Relief for the Year of Assessment 2017 is computed as follows:

CPF Relief on

Amount

OW

$48,000 x 20% = $9,600

AW

$19,000 x 20% = $3,800

Total CPF Relief allowed for YA 2017

= $13,400 ($9,600 + $3,800)

Andrew is 30 years old. He made voluntary contributions to his Medisave Account in 2016. His CPF Relief for the Year of Assessment 2017 is computed as follows:


Total Salary (OW + AW)

$95,000

Compulsory CPF contributions made by Andrew's employer

17% x $95,000 cap

= $16,150

Compulsory CPF contributions by Andrew as an employee

20% x $95,000 cap

= $19,000

Total Contribution by Andrew and his employer

= $35,150

($16,150 + $19,000)

Annual CPF contribution cap

$37,740

Voluntary cash contribution directed by Andrew to his Medisave Account

$3,500

Maximum tax relief allowed on voluntary contribution made by Andrew to his Medisave Account

$2,590

($37,740 - $35,150)

Total CPF Relief allowable to Andrew

= $21,590

($19,000 + $2,590)

How to Claim CPF Relief (e-Filing)

Is your employer participating in the Auto Inclusion Scheme?

No

Yes

  1. Login with your SingPass or IRAS PIN at myTax Portal.
  2. Go to Individuals > “File Form B/B1”.
  3. Select “Edit My Tax Form”.
  4. Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
  5. Go to “CPF/ Provident Fund”.
  6. Click “Update” and enter your claim.

If your employer is one of the participants of the Auto-Inclusion Scheme for Employment Income , you do not need to claim this relief.

We will automatically grant you this relief based on the information sent to us by your employer.

How to Claim (Paper Filing)

Is your employer participating in the Auto Inclusion Scheme?

No

Yes

Form B1

Complete item 6(f) on page 2 of Form B1.

 

Form B

Complete item 6(f) on page 3 of Form B.

If your employer is one of the participants of the Auto-Inclusion Scheme for Employment Income , you do not need to claim this relief.


We will automatically grant you this relief based on the information sent to us by your employer.

  • I have filed my tax return for Year of Assessment (YA) 2017. What should I do if I have forgotten to claim the CPF Relief?

    1. If your employer is not participating in the Auto-Inclusion Scheme for Employment Income

      If you have filed online, you may re-file within 14 days of your previous submission or by 18 Apr 2017, whichever is earlier. You can only re-file once.

      When you re-file, you must include all your income details and expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.

      If you could not re-file or you filed a paper tax return, please email us, with the following details/documents:

      1. your request to claim or revise the relief for YA 2017; and
      2. the Form IR8A (Return of Employee's Remuneration) or Form IR8S (Details of employer's / employee's contributions to CPF), where applicable, from your employer for YA 2017.
    2. If your employer is participating in the Auto-Inclusion Scheme for Employment Income

      IRAS will automatically grant you this relief based on the information sent to us by your employer.

  • I have received my tax bill for Year of Assessment (YA) 2017. I realise that I had submitted the amount of CPF Relief incorrectly. What should I do?

    Please file an objection within 30 days from the date of your tax bill using the “Objection to Assessment” e-Service in myTax Portal.

    If you are unable to use the e-Service, you may email us, with the following details/documents:

    1. your request to revise the relief for YA 2017; and
    2. Form IR8A (Return of Employee's Remuneration) or Form IR8S (Details of employer's / employee's contributions to CPF), where applicable, from your employer for YA 2017.
  • Can I obtain a refund of the voluntary CPF contributions I made in year 2017, if for YA 2018, the total amount of personal reliefs which I can claim is more than $80,000, even without any tax relief on voluntary CPF contributions I made?

    There will be no refund for accepted voluntary CPF contributions. As such, taxpayers who make voluntary CPF contributions on or after 1 Jan 2017 should note that the overall personal income tax relief cap of $80,000 applies from YA 2018 (when the income earned in 2017 is assessed to tax). Hence, you should evaluate whether you would benefit from tax relief on your voluntary CPF contributions, and make an informed decision accordingly.

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