A major component of Singapore’s social security system, the Central Provident Fund (CPF) was established in 1955 under the British colonial government. The scheme works on the basis of continuous employment. It is mandatory for both the employee and employer to contribute a certain percentage of the employee’s monthly gross salary to the fund under the scheme. The savings can only be withdrawn at the age of 55. Since 1968, the funds can also be used for other approved purposes, the most important being the financing of public housing or HDB flats.
