What are the statutory pension benefits in Singapore?

In Singapore, statutory pension benefits are provided under the Central Provident Fund (CPF) scheme. Here are the key components:

• Eligibility:
• All employees who are Singaporean citizens or permanent residents must participate in the CPF scheme.
• Contribution rates differ for permanent residents based on the duration of their residency. Expatriate employees do not contribute to or receive CPF pension benefits.

• Contributions:
• Employees contribute a portion of their monthly wages to the CPF.
• Employers are required to contribute a certain percentage of the employee's salary each month.
• Contribution rates vary by age and salary and are subject to monthly and annual limits. Standard rates for citizens and permanent residents from the third year are 20% of Ordinary Wage plus 20% of Additional Wage for employees aged 55 and below.

• Permanent Residents:
• Permanent residents have a lower CPF contribution rate in the first 2 years of residency. From the third year, standard rates apply.
• Contributions can be increased during the initial years if mutually agreed upon with the employer.

• CPF Accounts and Benefits:
• Ordinary Account (OA): For housing, investments, insurance, and education.
• Special Account (SA): For retirement financial products.
• Medisave Account: Covers medical expenses.
• Retirement Account (RA): Established at age 55, funded by transfers from the OA and SA.
• Benefits are typically paid through CPF LIFE (Lifelong Income for the Elderly). Some situations, such as medical reasons or permanent emigration, allow for early withdrawals.

• Foreign Nationals:
• Non-citizen or non-permanent resident employees may contribute to the Supplementary Retirement Scheme (SRS), which has annual contribution caps and is an option for foreigners working in Singapore.

For additional information about the Supplementary Retirement Scheme (SRS), please visit the Government of Singapore’s website (https://www.mom.gov.sg/employment-practices/progressive-wage-model/what-is-pwm).