CPF and Australians in Singapore: why you don't pay it, until you become PR
Short answer: on an Employment Pass you and your employer pay nothing into CPF. The day you become a permanent resident, that changes.
The short version
- The Central Provident Fund (CPF) is Singapore's compulsory savings scheme. Contributions are payable for Singapore citizens and permanent residents only [1].
- Employment Pass, S Pass and ONE Pass holders don't contribute, and neither does their employer. You keep your whole salary, but you also build no CPF savings.
- New PRs phase in over two years: 5% from you and 4% from your employer in year one, rising to 20% and 17% from year three for those aged 55 and under [1][2].
- CPF is capped: contributions apply to ordinary wages up to S$8,000 a month from 1 January 2026 [3].
- If you give up PR and leave, you can withdraw your CPF savings in full [2][4]. Australia and Singapore have no social security agreement, so CPF and super never talk to each other [5].
Why EP holders don't pay CPF
CPF works a bit like super, a bit like Medicare and a bit like a home deposit scheme rolled together. It's built for citizens and PRs, and the CPF Board's own contribution tables cover only those two groups [1].
For Australians on an Employment Pass, the effect is simple:
- No deductions from your pay. Your payslip shows gross salary less nothing (remember there's no PAYG either; see our income tax guide).
- No employer contribution. Nothing like the 12% Superannuation Guarantee you'd get at home. That's why Singapore packages for foreigners often look generous on paper.
- No CPF accounts. You can't use MediSave for hospital bills or the Ordinary Account for a flat.
Some employers make up the gap with a retirement allowance or a contribution to an overseas plan. That's a negotiation point, not a legal requirement. Ask when you're comparing offers.
What about your super?
Your Australian super keeps sitting there while you're on an EP. If your Singapore employer isn't an Australian employer, no Superannuation Guarantee goes in. You can still make voluntary contributions, subject to the usual caps. Our guide to your super while living overseas covers that side.
What changes when you become a PR
PR status flips the switch from the day it's granted [6]. To soften the drop in take-home pay, the first two years are "graduated" [1][2]:
| PR year (age 55 and under) | You pay | Employer pays | Total |
|---|---|---|---|
| Year 1 | 5% | 4% | 9% |
| Year 2 | 15% | 9% | 24% |
| Year 3 onwards | 20% | 17% | 37% |
Sources: [1][2].
You and your employer can jointly apply to pay more sooner: either both at full rates from day one, or the employer at the full 17% while you stay on graduated rates [7]. If you're aiming to buy an HDB resale flat or want MediSave to build faster, that can be worth asking for.
Rates fall as you get older. From 1 January 2026, a full-rate employee aged above 55 to 60 pays 18% with 16% from the employer, and the rates keep stepping down beyond 60 [1].
The wage ceiling
Contributions only apply to ordinary wages up to a monthly ceiling, which rose to S$8,000 on 1 January 2026 [3]. If you earn S$15,000 a month, the 20% employee share is worked out on S$8,000, not S$15,000. That's a cap Australians rarely expect, since super has its own maximum contribution base and caps but works differently.
Where the money goes
Your CPF is split across accounts, each with its own job [2]:
| Account | What it's for | Rough comparison with home |
|---|---|---|
| Ordinary Account (OA) | Housing, approved investments, insurance, education | A bit like a home deposit scheme you can draw on |
| Special Account (SA) | Retirement | Closest to super |
| MediSave (MA) | Hospital bills and approved health insurance premiums | No real equivalent; Medicare is funded by the levy |
From 55, a Retirement Account is set up, and CPF LIFE later pays a monthly income for life. For people turning 55 in 2026, the Full Retirement Sum is S$220,400 [3].
MediSave is the part most new PRs notice first. It pays towards MediShield Life, Singapore's basic hospital insurance, and can be used for some hospital and outpatient costs. As a PR you also get more subsidised rates at public hospitals than EP holders, though still less than citizens.
Getting your CPF out if you leave
This is the question Australians ask most, because most don't stay forever.
If you never became PR, there's nothing to withdraw. You never had a CPF account.
If you're PR and leave Singapore but keep your status, your account stays open and keeps earning CPF interest while your Re-Entry Permit is valid. Nobody has to keep contributing for you [2].
If you renounce PR, you can withdraw your CPF savings in full [2][4]. The account closes in the month after you renounce, and money left in it stops earning normal CPF interest [4]. Under the current rules, leftover balances earn interest similar to bank rates only until 31 March 2027, then nothing [2].
Closing your account, step by step
- Renounce your PR through the Immigration & Checkpoints Authority before or when you leave.
- Gather documents: passports (old and current), your PR card if you have one, and a bank statement for the account you want paid into [4].
- Apply to close your CPF account using the CPF Board's account closure process. Overseas, Singapore missions such as the High Commission in Wellington witness the form by appointment [4].
- Check the money lands, and note that any CPF LIFE plan you're on ends and its balance is paid out with the rest [2].
- Tell the ATO if you're moving back. Bringing money home isn't income in itself, but get advice on any earnings component.
Leaving PR is a big decision. You may not get it back easily, and it can affect children's schooling and future visits. Don't renounce just to get at the money unless you're sure.
Super, the Age Pension and no agreement
Australia has social security agreements with a long list of countries, including Japan, Korea and India in Asia. Singapore isn't on the list [5]. What that means:
- No double-coverage rules. There's nothing to stop both CPF and super applying if you were ever employed in both systems at once, though this rarely happens in practice.
- Your CPF years don't count towards the Age Pension. Normally you need 10 years of Australian residence, with at least five in one stretch, to qualify. With an agreement, years in the other country can help fill the gap. Without one, Singapore years count for nothing.
- You can't roll CPF into super. Withdrawn CPF arrives as cash. If you want it in super, it goes in as a voluntary contribution, and the contribution caps apply.
Our guide to Centrelink and the Age Pension abroad explains residence rules in more detail.
Thinking about PR and want to hear how others found the CPF hit? Ask in Cooee Singapore, our Facebook group for Australians in Singapore.
Sources
- How much CPF contributions to pay – CPF Board
- A comprehensive guide to CPF for newly approved permanent residents – Endowus (updated August 2026)
- Six CPF changes in 2026 – Beansprout
- Withdrawal of CPF contributions – Singapore High Commission in Wellington
- Agreements with countries in Asia – Services Australia
- I have just obtained my Singapore PR status. Do I need to contribute CPF? – Ask.gov.sg
- How can I contribute more CPF for my new PR employee? – CPF Board