Ordinary Account (OA)
Used for housing (HDB flat purchase, mortgage repayment), approved investments, and education. Earns 2.5% interest per annum. Can be transferred to SA for higher interest (irreversible).
Special Account (SA)
Reserved for retirement savings and approved long-term investments. Earns 4% interest per annum. Has stricter withdrawal rules than OA. Closed at age 55 when balance transfers to RA.
MediSave Account (MA)
For medical expenses — hospitalization, approved outpatient treatments, and MediShield Life premiums. Earns 4% interest per annum. Capped at the Basic Healthcare Sum ($75,500 in 2026); excess flows to SA/RA.
Retirement Account (RA)
Created at age 55 by combining SA and OA balances up to the Full Retirement Sum (FRS). Funds the CPF LIFE annuity scheme which pays monthly from age 65. Earns 4% interest per annum.
Employee Contribution
The portion deducted from your gross salary each month. For employees aged 55 and below, this is 20% of ordinary wages. It reduces your take-home pay directly.
Employer Contribution
The additional amount your employer pays on top of your salary — you do not pay this. For employees aged 55 and below, this is 17% of ordinary wages. It goes entirely into your CPF accounts.
Ordinary Wages (OW)
Regular monthly salary. CPF on OW is capped at the OW Ceiling of $6,800/month — wages above this threshold are not subject to CPF contributions on the ordinary wage component.
Additional Wages (AW)
Irregular payments such as annual bonus, AWS (Annual Wage Supplement), or incentive payments. CPF applies to AW up to the annual AW ceiling: $102,000 minus total OW subject to CPF for the year.
Annual Wage Supplement (AWS)
Commonly known as the 13th-month bonus. A contractual one-month bonus paid once a year. CPF contributions apply subject to the annual ceiling.
Ordinary Account Interest (OA)
Interest credited monthly on your Ordinary Account balance. An additional 1% per annum is earned on the first $20,000 of OA balance (as part of the Extra Interest scheme for the first $60,000 of combined CPF balances).
Special Account Interest (SA)
Interest credited monthly on your Special Account balance. An additional 1% per annum applies on the first $40,000 of SA balance (combined with MA balances, after the OA first $20,000 is accounted for).
MediSave Account Interest (MA)
Interest credited monthly on your MediSave Account balance. Surplus MA funds above the Basic Healthcare Sum ($75,500) are automatically transferred to SA (if below 55) or RA (if above 55).
Retirement Account Interest (RA)
Interest credited monthly on your Retirement Account balance. Members aged 55 and above earn extra interest on the first $30,000 and next $30,000 of their RA balance, boosting effective retirement savings.
Extra Interest Bonus
Members below 55 earn an extra 1% p.a. on the first $60,000 of combined CPF balances (capped at $20,000 from OA). This is in addition to the base interest rates above. Rates vary by account type — check cpf.gov.sg for current rates.
Basic Retirement Sum (BRS)
$106,500 in 2026. The minimum RA balance for CPF LIFE enrolment if you own property with at least one other owner. Provides ~$860/month payout from age 65.
Full Retirement Sum (FRS)
$213,000 in 2026 (2× BRS). The standard target retirement balance providing ~$1,650/month payout from age 65 via CPF LIFE. Most members aim for this.
Enhanced Retirement Sum (ERS)
$426,000 in 2026 (4× BRS). The maximum voluntary top-up limit for the RA, providing ~$3,300/month CPF LIFE payout. Introduced in 2026 at 4× BRS (previously 3×).
CPF LIFE
Lifelong Income For the Elderly — a national annuity scheme providing monthly payouts for life from age 65 (or later if deferred). Mandatory for those with RA ≥ $60,000 at age 65.
PR Graduated Rates
Permanent Residents in their 1st year contribute at 5% (employee) + 4% (employer). 2nd year: 15% + 8%. From the 3rd year, full citizen rates apply. These lower rates help PRs transition gradually.