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
- Compulsory employee CPF contributions under the CPF Act or contributions to an approved pension or provident fund;
- Voluntary contributions to your Medisave Account.
Please note that a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including relief on compulsory/ voluntary CPF contributions) for each Year of Assessment.
There will be no refund for accepted voluntary CPF contributions. Please evaluate whether you would benefit from tax relief on your voluntary CPF contributions and make an informed decision.
Contributions that do Not Qualify for CPF Relief
- Voluntary contributions made in excess of the compulsory contributions under the CPF Act;
- 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
- 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 |
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From 1 Jan 2016 | $6,000 per month |
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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) |
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| From 1 Jan 2016 | $102,000 less Total OW subject to CPF
($102,000 = 17 months x $6,000) |
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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 2019:
| Employment Period: 1 Jan 2019 to 31 Dec 2019 | Ordinary Wage (OW) | Additional Wage (AW) |
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Total wages for 2019 | $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) 2020 is computed as follows:
| CPF Relief on | Amount |
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OW | $60,000 x 20% = $12,000 |
AW | $42,000 x 20% = $8,400 |
Total CPF Relief allowed for YA 2020 | = $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 2019:
| Employment Period: 1 Jan 2019 to 31 Dec 2019 | Ordinary Wage(OW) | Additional Wage (AW) |
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Total wages for 2019 | $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. | 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 2020 is computed as follows:
| CPF Relief on | Amount |
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OW | $72,000 x 7.5% * = $5,400 |
AW | $10,000 x 7.5% * = $750 |
Total CPF Relief allowed for YA 2020 | = $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 2019. She received the following income in 2019:
Employment Period:
1 Jan 2019 to 30 Nov 2019 | Ordinary Wage (OW)
| Additional Wage (AW)
|
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Total wages for 2019 | $7,000 x 11 months = $77,000 | $45,000 |
OW & AW Ceiling | Jan to Nov 2019
= $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 2020 is computed as follows:
| CPF Relief on | Amount |
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OW | $66,000 x 20% = $13,200 |
AW | $36,000 x 20% = $7,200 |
| Total CPF Relief Allowed for YA 2020 | = $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 2019. He received the following income in 2019:
Employment Period:
1 Jan 2019 to 31 Aug 2019 | Ordinary Wage (OW)
| Additional Wage (AW)
|
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Total wages for the year 2019 | $7,000 x 8 months = $56,000 | $19,000 |
OW & AW ceiling | Jan to Aug 2019 = $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 2020 is computed as follows:
| CPF Relief on | Amount |
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OW | $48,000 x 20% = $9,600 |
AW | $19,000 x 20% = $3,800 |
Total CPF Relief allowed for YA 2020 | = $13,400 ($9,600 + $3,800) |
Andrew is 30 years old. He made voluntary contributions to his Medisave Account in 2019. His CPF Relief for the Year of Assessment 2020 is computed as follows:
|
Total Salary (OW + AW) | $95,000 |
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Compulsory CPF contributions made by Andrew's employer | 17% x $95,000 cap = $16,150 |
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Compulsory CPF contributions by Andrew as an employee | 20% x $95,000 cap = $19,000 |
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Total Contribution by Andrew and his employer | = $35,150 ($16,150 + $19,000) |
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Annual CPF contribution cap | $37,740 |
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Voluntary cash contribution directed by Andrew to his Medisave Account | $3,500 |
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Maximum tax relief allowed on voluntary contribution made by Andrew to his Medisave Account | $2,590 ($37,740 - $35,150) |
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Total CPF Relief allowable to Andrew | = $21,590 ($19,000 + $2,590) |
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How to Claim CPF Relief (e-Filing)
| Is your employer participating in the Auto Inclusion Scheme? |
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No | Yes |
- Login with your SingPass or
IRAS Unique Account (IUA) at
myTax Portal.
- Go to Individuals > “File Income Tax Return”.
- Select “Edit My Tax Form”.
- Go to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
- Go to “CPF/ Provident Fund”.
- 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? |
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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.
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