EPF vs CPF: Difference and Comparison

EPF and CPF are the two types of provident funds where an employee has to contribute a fixed percentage of his or her basic salary. They are issued to the salaried employees of an organization.

CPF is mainly for non-pensionable government employees. Though EPF and CPF are two types of provident funds with various similarities, they also have some significant differences.

Key Takeaways

  1. EPF and CPF are both retirement savings schemes.
  2. EPF is available to employees in Malaysia, while CPF is available to employees in Singapore.
  3. EPF allows withdrawals for certain purposes, such as buying a house, while CPF has more restrictions.


The difference between EPF and CPF is that EPF is Employee Provident Fund, whereas CPF refers to Central Provident Fund. EPF is mainly for the salaried people of India and Malaysia. On the other hand, the CPF scheme is designed for the employees of Singapore. They both are implemented in different countries and also have different clauses.


EPF is implemented as a social security tool, and it stands for Employees Provident Fund. This scheme is specifically for Indian and Malaysian salaried employees.

Under the EPF program, an employee has to contribute 12% of his salary to the EPF account. The percentage is decided by the government.

This fund can be withdrawn on the retirement of the employee.

CPF is known as the Central Provident Fund and is beneficial for the salaried employees of Singapore. Under the CPF scheme, an employee can contribute 20% of his salary.

The share of the contribution starts from a 13% minimum, and it cannot be touched until the retirement of the employee. There are three types of CPF accounts, that are, Ordinary Account, Special Accounts, and Medisave Accounts.

Comparison Table

Parameters of Comparison  EPF  CPF  
Stands for  Employee Provident Fund  Central Provident Fund  
What is it?  It is a social security savings scheme maintained by the Central Government for the employees working in the organized sectors.  It is a social security tool funded by the salaried employees of Singapore.  
Percentage of contribution  Employees under EPF program required to pay 12% of the basic salary.  Minimum 20% of the basic salary.  
Eligibility  Employees of Indian and Malaysian organizations.  Employees of Singapore.  
Fund withdrawal age  58 years.  55 years.  
Established in  1952  1955  

What is EPF?

EPF is a type of provident fund issued to the salaried employees of an organization. EPF refers to the Employees Provident Fund. This social security tool is for the employees of India and Malaysia.

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Under the EPF program, medical insurance and housing bills are covered. This fund can be withdrawn on the retirement of the worker.

It was established in 1952 and includes various financial facilities and security schemes.

In this scheme, the employee and employer both contribute 12% of their basic salary towards the EPF fund. There is a total of 12% contribution, 8.33% of it is diverted to the EPS or pension scheme, and the left 3. 67% is invested in EPF.

It pays out a lump sum upon housing programs, pension schemes, and insurance policies. It also covers health care and retirement-related costs.

Only the employees of organized sectors are eligible for the EPF program. Any organization or sector with more than 20 employees must be registered under the EPF program.

An employee will be eligible for the EPF pension scheme if he completes 10 years of cumulative service under any EPF-registered organization. The current EPF interest is 8.50%, and the government decides it from time to time.

What is CPF?

CPF is a social security service scheme that provides financial security to employees and employers. It is administered by the Central Provident Fund board and was formed on July 1, 1955.

Employees and employers under the CPF scheme are required to make a monthly contribution to the CPF account. This social security tool is mainly for the salaried people of Singapore.

CPF provides a healthy retirement plan for Singaporeans and also covers health, retirement, medical, and housing-related needs. CPF is for non-pensionable government service holders.

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This scheme includes monthly pensions, home protection, and insurance schemes. Under this scheme, workers in the public sector are required to deposit 20% of their monthly earnings to the CPF fund.

Employees are eligible to draw down funds at the age of 55 from the CPF account.

There are three main types of CPF accounts: Ordinary Accounts, Special Accounts, and Medisave Accounts. The ordinary account is for CPF insurance payouts, education costs, housing programs, and investments.

Special accounts provide retirement-related financial arrangements. The Medisave account covers medical insurance policies.

At the age of 65 years, the employee under this scheme starts receiving monthly payouts from the CPF savings account.

central provident fund

Main Differences Between EPF and CPF

  1. EPF stands for Employee Provident Fund. On the other hand, CPF stands for Central Provident Fund.
  2. EPF was established in 1952. On the other hand, CPF was established after the establishment of the EPF program in 1955.
  3. EPF is for the Indian and Malaysian employees of various organizations. On the other hand, CPF is for Singaporean employees.
  4. People under the EPF scheme need to contribute 12% of their basic salary. On the other hand, the employees need to pay at least 20% of their basic salary towards the CPF account.
  5. The fund withdrawal age for the EPF program is 58 years. On the other hand, under the CPF program, the employees can withdraw the money at the age of 55.
Difference Between X and Y 2023 06 09T102319.795
  1. https://books.google.com/books?hl=en&lr=&id=Do6LBQAAQBAJ&oi=fnd&pg=PT49&dq=epf+and+cpf+account&ots=nd5Ym5CV9r&sig=RMwNHnNswZ1YBw-4VESYK5xyLuc
  2. https://www.researchgate.net/profile/Nik-Hazimi-Mohammed-Foziah/publication/330036182_Analysis_of_private_sector_retiree’s_decision_towards_EPF_retirement_benefit_of_annuity-based_option/links/5c6227ac45851582c3e177ae/Analysis-of-private-sector-retirees-decision-towards-EPF-retirement-benefit-of-annuity-based-option.pdf

Last Updated : 13 July, 2023

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12 thoughts on “EPF vs CPF: Difference and Comparison”

  1. This is a thorough comparison between EPF and CPF; presented more clearly than any other article I’ve read online this far.


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