CPF Relief is given to encourage individuals to save for their retirement. Employees who are Singapore Citizens or Singapore Permanent Residents may claim CPF Relief.

Contributions that qualify for 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 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 not eligible for 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 2 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 relief

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

The amount of CPF Relief is capped to ensure that CPF is not used as a tax shelter.

Ordinary Wages and Additional Wages

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 may claim CPF Relief for making employee CPF contributions on wages that have not exceeded the Ordinary Wage ceiling and Additional Wage ceiling.

 

Ordinary Wage (OW) ceiling

From 1 Jan 2016$6,000 per month

Additional Wage (AW) ceiling

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.

Examples on computations of CPF Relief

Example 1: Additional Wages exceed the ceiling

Mr Lim is 40 years old. His compulsory employee CPF contribution rate is 20%. He received the following income in 2020:

Employment period: 1 Jan 2020 to 31 Dec 2020 Ordinary Wage (OW) Additional Wage (AW)

Total wages for 2020

$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) 2021 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 2021

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

Example 2: Ordinary Wages exceed the ceiling

Mr Heng is 61 years old. His compulsory employee CPF contribution rate is 7.5%. He received the following income in 2020:

Employment period: 1 Jan 2020 to 31 Dec 2020Ordinary Wage(OW)Additional Wage (AW)

Total wages for 2020

$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 2021 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 2021

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

Example 3: Total wages exceed the ceiling

Ms Cheong is 29 years old. Her compulsory employee CPF contribution rate is 20%. Her last date of employment was 30 Nov 2020. She received the following income in 2020:

Employment period:

1 Jan 2020 to 30 Nov 2020
Ordinary Wage (OW)

 

Additional Wage (AW)

 

Total wages for 2020

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

$45,000

OW & AW ceiling

Jan to Nov 2020
= $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 2021 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 2021

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

Example 4: Claiming CPF Relief when employment has ceased

Mr Tan is 35 years old. His compulsory employee CPF contribution rate is 20%. His last date of employment was 31 Aug 2020. He received the following income in 2020:

Employment period:

1 Jan 2020 to 31 Aug 2020
Ordinary Wage (OW)

 

Additional Wage (AW)

 

Total wages for the year 2020

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

$19,000

OW & AW ceiling

Jan to Aug 2020

= $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).

Mr Tan's CPF Relief for YA 2021 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 2021

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

Example 5: Employee makes voluntary contribution to Medisave Account

Andrew is 30 years old. He made voluntary contributions to his Medisave Account in 2020. His CPF Relief for the Year of Assessment (YA) 2021 is computed as follows:

Total wages (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 CPF contributions 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 allowed for YA 2021

= $21,590

($19,000 + $2,590)

How to claim

e-Filing

Is your employer participating in the Auto-Inclusion Scheme?

NoYes
  1. Login with your Singpass or Singpass Foreign user Account (SFA) at myTax Portal.
  2. Go to “Individuals” > “File Income Tax Return”.
  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.

 

Paper filing

Is your employer participating in the Auto-Inclusion Scheme?

NoYes

Form B1 & B

Complete the item on “CPF Relief”.

Form B1 & 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.

FAQs

I have filed my Income Tax Return. 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 e-Filed your Income Tax Return, please re-file within 7 days of your previous submission or by 18 Apr, whichever is earlier. You will only be able to re-file once. When you re-file, you must include all your income details, expenses, donations and relief claims, where applicable. Once you have re-filed successfully, your new submission will override the previous submission.

If you filed a paper Income Tax Return or are unable to re-file online, please email us:

a. your request to claim or revise the relief; and

b. 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.

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 the current Year of Assessment. I realise that I had submitted the amount of CPF Relief incorrectly. What should I do?

Please file an amendment using the “Object to Assessment” digital service at myTaxPortal within 30 days from the date of your tax bill.

If you are unable to use the digital service, you may email us:

  1. your request to revise the relief; 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.

Can I obtain a refund of the voluntary CPF contributions I made in the previous year, if for the current Year of Assessment, the total amount of personal reliefs that 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 Year of Assessment 2018. Hence, you should evaluate whether you would benefit from tax relief on your voluntary CPF contributions and make an informed decision accordingly.