Central Provident Fund (CPF) - 401k Glossary

Central Provident Fund (CPF) was introduced by the Singaporean Government to encourage the people of Singapore to save for their retirement and reduce the burden on the Pension System. Introduced in 1948 by the Progressive Party, the Central Provident Fund was meant to provide some sort of financial security for retirees living in Singapore.

The percentage of contributions from Gross Wage depends on the age of the individual. For example, individuals less than the age of 35 must contribute 33% of their Gross Wages towards the Central Provident Fund (CPF). This 33% is made up of Employee Contributions of 20% and Employer Matching Contributions of 13%