Seeing a chunk of your monthly salary goes to CPF every month? Do you ever wonder how things are going with that chunk and how it will benefit you? Or are you one of those workers that simply follow the rules to contribute and have a retirement nest egg in the future? Then, now is the time to learn more about the CPF.
Here is the ultimate CPF guide you must know for 2021.
The Central Provident Fund in Singapore
According to the Central Provident fund board, the central provident fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds to meet financial needs. Aside from retirement, CPF's primary purpose is to help Singaporeans save for healthcare, homeownership, family protection, and asset enhancement.
Why do we have a CPF?
The CPF requires all working Singaporeans earning more than S$500 per month to make regular contributions to the Fund through an employment-based savings scheme for their benefit. The employer will deposit the regular and compulsory CPF contribution of the employee to the CPF.
For self-employed individuals, the CPF contributions are voluntary except the Medisave contributions. CPF requires that contributions be paid after filing of taxes.