Central Provident Fund - CPF

Every American at one time or another has looked at his or her pay stub and seen deductions for FICA tax.

FICA is an acronym for Federal Insurance Contributions Act, which is automatically deducted from one’s paycheck to pay for Social Security and Medicare.

The Central Provident Fund (CPF) is the Singaporean version of FICA. CPF averages about 20% of one’s paycheck every month and contributes to retirement benefits, the Singaporean version of Universal Health Care, subsidized public housing, and education. Employers contribute about 17%, and both contributions gradually reduce after age 55.