What is CPF Relief?

CPF Relief is the income tax relief on compulsory CPF contributions. An employee who is a Singapore Citizen or PR gets it on the compulsory employee contributions on wages up to the CPF ceilings — SGD 8,000 a month of Ordinary Wages from 1 January 2026 and SGD 102,000 of wages a year. Cash top-ups to the Special, Retirement or MediSave Account are relieved separately, under CPF Cash Top-up Relief of up to SGD 16,000 a year; voluntary contributions above the compulsory amount get no relief.

Updated Published 6 min read INCOME TAX
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Singapore · CPF Relief on SGD 102,000 of wages, employee aged 55 and below (20%)
SGD 20,400
OW ceilingSGD 8,000
Per yearSGD 102,000
Top-upsSGD 16,000
Relief capSGD 80,000
Employee rate, 55 and below20%of wages up to the ceilings, from 1 January 2026
Ordinary Wage ceilingSGD 8,000a month, from 1 January 2026
Annual salary ceilingSGD 102,000Ordinary plus Additional Wages
Cash top-up reliefSGD 16,000SGD 8,000 own + SGD 8,000 family
Self-employed MediSaveIn fullcompulsory contributions, from YA 2026
Overall relief capSGD 80,000every relief together, since YA 2018
On this pageThree kinds of reliefWorked exampleWhat it means for youMisconceptionsRelated termsSources

Key takeaways

  • CPF Relief for employees covers compulsory employee CPF contributions under the CPF Act, on Ordinary and Additional Wages within the ceilings: SGD 6,800 a month in 2024, SGD 7,400 in 2025 and SGD 8,000 from 1 January 2026, with the annual salary ceiling at SGD 102,000. It is open to Singapore Citizens and Permanent Residents.
  • Voluntary contributions an employee makes above the compulsory amount get no CPF Relief. Voluntary MediSave contributions made from 1 January 2022 are relieved under CPF Cash Top-up Relief instead.
  • CPF Cash Top-up Relief covers cash top-ups under the Retirement Sum Topping-Up Scheme: up to SGD 8,000 a year for top-ups to one’s own accounts and SGD 8,000 for family members’. A spouse or sibling without a disability must have had annual income of no more than SGD 8,000 in the year before the top-up. Top-ups that attract MRSS matching grants are excluded from YA 2026, and MediSave top-ups that attract the Matched MediSave Scheme grant from YA 2027.
  • Only cash counts: transfers from one’s own CPF savings earn no relief. A cash top-up is relieved in the following Year of Assessment if the application reaches CPF Board by 31 December. Relief stops at the current Full Retirement Sum (SGD 220,400 for top-ups made in 2026) less the recipient’s SA or RA savings, and for recipients below 55 also less net SA savings still invested under CPFIS.
  • From YA 2026 a self-employed person gets relief on the full amount of compulsory MediSave contributions made in the preceding year, with no cap. Voluntary contributions are relieved only up to the lowest of 37% of net trade income assessed, the SGD 37,740 CPF annual limit (both less relief on compulsory contributions) or the amount contributed. All CPF-related relief counts towards the SGD 80,000 personal income tax relief cap.
Definition

Which CPF money earns tax relief?

IRAS relieves CPF money in three main ways, depending on who pays it and whether it is compulsory; platform workers on increased CPF contributions have separate rules.

Employees20%The rate at 55 and below, lower above 55. Compulsory employee contributions on wages up to SGD 8,000 a month and SGD 102,000 a year; automatic where the employer is in the Auto-Inclusion Scheme.
Cash top-upsSGD 16,000Retirement Sum Topping-Up Scheme cash top-ups: SGD 8,000 for one’s own accounts and SGD 8,000 for family members’. Granted automatically from CPF Board records.
Self-employedMediSaveCompulsory MediSave contributions relieved in full from YA 2026; voluntary contributions within a cap.

Contributions on Additional Wages above the related-employers cap, and CPF on overseas employment while seconded or posted abroad, earn no CPF Relief.

Worked example

How much CPF Relief a salary earns

Relief on SGD 102,000 of wages subject to CPF in 2026 (relief in YA 2027), at CPF Board’s 2026 employee rates for Singapore Citizens and for PRs from their third year, on monthly wages above SGD 750. PRs in their first two years and lower-wage employees contribute at lower rates, so their relief is lower.

Age bandEmployee rateRelief on SGD 102,000
55 and below20%SGD 20,400
Above 55 to 6018%SGD 18,360
Above 60 to 6512.5%SGD 12,750
Above 65 to 707.5%SGD 7,650
Above 705%SGD 5,100

IRAS’s example: SGD 66,000 salary and SGD 40,000 bonus

Ordinary Wages × 20%SGD 13,200
AW ceilingSGD 36,000
Capped AW × 20%SGD 7,200
CPF Relief, YA 2026SGD 20,400

IRAS’s example of a 40-year-old paid SGD 66,000 of Ordinary Wages and SGD 40,000 of Additional Wages in 2025. The Additional Wage ceiling is SGD 102,000 − SGD 66,000 = SGD 36,000, so only that much of the bonus attracts CPF and earns relief.

What it means for you

Where CPF Relief shows up in a tax bill

Salary and bonusIncome tax calculator
Relief follows the compulsory contributions, so pay above SGD 8,000 a month, or a bonus beyond the Additional Wage ceiling of SGD 102,000 less the total Ordinary Wages subject to CPF for the year, earns none.
Topping up parentsCPF calculator
Cash top-ups to parents and grandparents, including in-laws, step- and adoptive relatives, qualify with no income test, up to SGD 8,000 a year across family members. A spouse or sibling without a disability qualifies only with income of SGD 8,000 or less in the previous year.
MediSave top-upsCPF contribution rates
MediSave cash top-ups count up to the Basic Healthcare Sum less the balance — SGD 79,000 for top-ups made in 2026, for members below 65. From 2026, top-ups that draw the Matched MediSave Scheme grant earn no relief.
Self-employed incomeIncome tax calculator
Compulsory MediSave applies once net trade income exceeds SGD 6,000. From YA 2026 those contributions are relieved in full, even in a year with no assessable net trade income.
The overall capIncome tax calculator
CPF Relief and CPF Cash Top-up Relief both count towards the SGD 80,000 cap on all personal reliefs in a Year of Assessment.
Common misconceptions

Five things people get wrong

Extra voluntary CPF contributions by an employee cut tax under CPF Relief.
Voluntary contributions above the compulsory amount get no CPF Relief. Cash top-ups under the Retirement Sum Topping-Up Scheme are relieved separately, under CPF Cash Top-up Relief.
CPF Relief always has to be claimed.
IRAS grants it automatically where the employer is in the Auto-Inclusion Scheme, and grants Cash Top-up Relief automatically from CPF Board records. An employee whose employer is not in the scheme claims CPF Relief in the income tax return.
Moving OA savings into a parent’s Retirement Account earns relief.
Only cash top-ups qualify. Transfers from one’s own CPF savings, to anyone’s account, earn no relief.
Every dollar topped up is relieved.
Relief stops at SGD 8,000 for one’s own accounts and SGD 8,000 for family members’, and at the Full Retirement Sum less existing savings. Top-ups matched under MRSS from 1 January 2025 earn none.
CPF Relief sits outside the SGD 80,000 relief cap.
The cap covers the total of all reliefs, including relief on compulsory and voluntary CPF contributions.
Sources and reviewChecked against the IRAS CPF relief pages and CPF Board’s contribution rates on 2026-09-27

Official IRAS relief rules and CPF Board rates, for general information only. Not financial advice.

Sources: IRAS CPF Board

This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to IRAS and the CPF Board and seek independent professional advice before making any financial decisions.