Glossary
Plain definitions of Singapore CPF, income tax and retirement terms — every figure sourced from CPF Board and IRAS, as at 2026.
FEATURED TERM
CPFCPF Ordinary Account (OA)
The CPF account that can be used for housing, insurance, approved investments and education. OA savings earn a floor interest rate of 2.5% p.a.
2.5% p.a.
OA floor rate (as at 2026) · CPF Board
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Short definitions, A–Z. Every figure is sourced from an official government authority and stated as at 2026 / YA 2026.
C
CPF & RETIREMENT
Central Provident Fund (CPF)
Singapore’s compulsory savings scheme for retirement, housing and healthcare, funded by monthly employee and employer contributions and administered by the CPF Board.
Total contribution (≤55)
37%
Example: On a SGD 5,000 monthly wage, combined CPF contributions are 37%, or SGD 1,850.
INCOME TAX & GST
Chargeable income
The portion of income on which tax is calculated: assessable income minus approved personal reliefs. Resident rates apply to this amount, not gross income.
Tax-free band (YA 2026)
First SGD 20,000
Example: Assessable income of SGD 90,000 minus SGD 10,000 reliefs = SGD 80,000.
CPF & RETIREMENT
CPF accrued interest
The interest CPF savings used for a property would have earned, refunded to CPF on sale. Calculated at the OA floor rate of 2.5% p.a., compounded yearly.
Accrued interest rate
2.5% p.a.
Example: OA savings used for a home are refunded with 2.5% accrued interest on sale.
CPF & RETIREMENT
CPF Basic Retirement Sum (BRS)
The lower CPF retirement sum tier set aside at age 55 for basic retirement payouts. SGD 110,200 for members turning 55 in 2026.
Basic Retirement Sum (2026)
SGD 110,200
Example: Property owners may set aside the BRS and withdraw savings above it.
CPF & RETIREMENT
CPF contribution rate
The share of wages paid into CPF each month by employee and employer, set by age. For employees aged 55 and below it is 37% (17% employer, 20% employee).
Total rate (≤55)
37%
Example: Under-55s: employee 20% + employer 17% = 37% of wages.
CPF & RETIREMENT
CPF Enhanced Retirement Sum (ERS)
The highest CPF retirement sum a member can set aside for larger CPF LIFE payouts. SGD 440,800 in 2026 — four times the Basic Retirement Sum.
Enhanced Retirement Sum (2026)
SGD 440,800
Example: Members can top up to the ERS for higher CPF LIFE payouts.
CPF & RETIREMENT
CPF Full Retirement Sum (FRS)
The standard CPF retirement sum set aside at age 55 and the reference point for CPF LIFE payouts. SGD 220,400 for members turning 55 in 2026.
Full Retirement Sum (2026)
SGD 220,400
Example: The FRS is the default retirement sum set aside at age 55.
CPF & RETIREMENT
CPF LIFE
Singapore’s national annuity scheme paying lifelong monthly income from Retirement Account savings, from the payout eligibility age of 65.
Payout eligibility age
65
Example: Payouts can start any time from age 65 to 70.
CPF & RETIREMENT
CPF MediSave Account (MA)
The CPF account reserved for healthcare costs and approved insurance premiums. The 2026 Basic Healthcare Sum is SGD 79,000 for members below 65.
Basic Healthcare Sum (2026)
SGD 79,000
Example: MediSave can pay MediShield Life premiums and approved hospital bills.
CPF & RETIREMENT
CPF Ordinary Account (OA)
The CPF account that can be used for housing, insurance, approved investments and education. OA savings earn a floor interest rate of 2.5% p.a.
OA floor rate (as at 2026)
2.5% p.a.
Example: OA savings can be applied to the monthly repayment of an HDB housing loan.
CPF & RETIREMENT
CPF Retirement Account (RA)
The CPF account created at age 55 from SA and OA savings, up to the Full Retirement Sum, to fund CPF LIFE payouts. Earns a 4% p.a. floor.
RA floor rate (as at 2026)
4% p.a.
Example: At 55, SA and OA savings move to the RA up to the Full Retirement Sum.
CPF & RETIREMENT
CPF Retirement Sum Topping-Up (RSTU)
A CPF scheme to top up your own or a loved one’s Special or Retirement Account. Cash top-ups qualify for up to SGD 16,000 in tax relief a year.
Max cash top-up relief
SGD 16,000
Example: Cash top-ups can earn up to SGD 16,000 in tax relief a year.
CPF & RETIREMENT
CPF Special Account (SA)
The CPF account for retirement savings held by members below age 55, earning a 4% p.a. floor — higher than the OA. Closed for members aged 55 and above from January 2025.
SA floor rate (as at 2026)
4% p.a.
Example: A member below 55 with SA savings earns the 4% p.a. floor rate.
E
INCOME TAX & GST
Earned Income Relief
A personal income tax relief for those with income from work, a trade or a profession. SGD 1,000 (below 55), SGD 6,000 (55–59), SGD 8,000 (60+).
Below age 55
SGD 1,000
Example: A worker aged 58 qualifies for SGD 6,000 Earned Income Relief.
I
INCOME TAX & GST
Income tax
The tax individuals pay on chargeable income each year. Residents are taxed at progressive rates from 0% to 24% (YA 2026), administered by IRAS.
Top resident rate (YA 2026)
24%
Example: Chargeable income of SGD 80,000 gives YA 2026 tax of SGD 3,350.
P
INCOME TAX & GST
Personal income tax relief
Deductions from a resident’s income for approved circumstances that reduce chargeable income. Total reliefs are capped at SGD 80,000 a Year of Assessment.
Personal relief cap (YA 2026)
SGD 80,000
Example: Reliefs are capped at SGD 80,000 a Year of Assessment.
INCOME TAX & GST
Progressive tax rate
A tax structure where each higher band of chargeable income is taxed at a higher rate. Singapore resident rates rise from 0% to 24% (YA 2026).
Resident rate range (YA 2026)
0% – 24%
Example: Chargeable income of SGD 120,000 gives YA 2026 tax of SGD 7,950.
S
CPF & RETIREMENT
Supplementary Retirement Scheme (SRS)
A voluntary scheme complementing CPF: contributions earn tax relief and returns grow tax-free until withdrawal. Annual cap SGD 15,300 (SC/PR), SGD 35,700 (foreigners).
Annual cap (SC/PR)
SGD 15,300
Example: A SGD 15,300 SRS contribution reduces chargeable income by the same amount.
T
INCOME TAX & GST
Tax residency
Determines how income is taxed: residents pay progressive 0–24% rates and can claim reliefs; you are generally resident if in Singapore 183+ days a year.
Resident threshold
183 days
Example: 183 days or more in a calendar year means resident tax rates apply.
Y
INCOME TAX & GST
Year of Assessment (YA)
The year in which income tax is charged, based on the preceding year’s income. YA 2026 taxes income earned in 2025.
YA 2026 covers
2025 income
Example: Income earned in 2025 is taxed in YA 2026.
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This glossary is provided for educational and informational purposes only. Definitions and figures are illustrative, do not constitute financial advice, and are subject to change. Always refer to the relevant government authority and seek independent professional financial advice before making any financial decisions.