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Social security in Singapore.

Learn about social security in Singapore thanks to Horizons’ up-to-date guide.

Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 150 countries worldwide, without the need to open a local entity.

Social security in Singapore – Overview

Singapore has a straightforward social security system based almost entirely on contributions to the Central Provident Fund (CPD).

What does the social security system in Singapore cover?

The social security system in Singapore is operated through the Central Provident Fund (CPF). This mandatory social security savings scheme is funded by joint contributions made by employers and employees and is designed to cover health care, retirement and home ownership needs of Singaporean citizens and permanent residents.

What are the mandatory contributions for employees to social security in Singapore?

Employees are required to contribute 20% of monthly earnings subject to a maximum monthly salary ceiling of SGD 6,000. However, voluntary contributions above the mandatory amounts can be paid.

What are the mandatory contributions for employers to social security in Singapore?

Employers are required to contribute 17% of employees’ monthly salaries subject to a maximum monthly salary ceiling of SGD 6,000. However, voluntary contributions above the mandatory amounts can be paid.

How do mandatory contributions compare to the surrounding countries?

Mandatory contributions in Singapore are generally simpler than in neighboring countries, such as China (with ‘the 5 Insurances’) and Malaysia (with both the Employees Provident Fund and employment injury insurance). 

Frequently asked questions (FAQ):

Employers are required to contribute 17% of employees’ monthly salaries subject to a maximum monthly salary ceiling of SGD 6,000.

Social security contributions are designed to cover healthcare, retirement and home ownership needs of Singaporean citizens and permanent residents.

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