Who do these provident fund rates cover?

India: the INR 25,000 ceiling applies from 17 September 2026, up from INR 15,000, and the rates are on EPF wages, which are basic pay plus dearness allowance, not gross pay. Of the employer's 12%, 8.33% goes to the pension fund and 3.67% to the EPF account. Singapore: the ceiling is for ordinary wages, and the rates are for citizens and permanent residents in their third year or later, aged 55 and below, on monthly wages above SGD 750. Malaysia: the rates are for citizens and permanent residents under 60, with non-Malaysian employees paying 2% each side from October 2025 wages, and no wage ceiling. Hong Kong: the figures are a floor of HKD 7,100 and a cap of HKD 30,000 a month of relevant income. The employee pays nothing below the floor and the employer still pays 5%, and above the cap each side pays HKD 1,500 a month. Figures were read from the official sources listed on this page on 20 October 2026.

What is the provident fund ceiling in India?

INR 25,000 a month of EPF wages from 17 September 2026. It was INR 15,000 before. Mandatory EPF contributions of 12% from the employer and 12% from the employee are charged on wages up to the ceiling.

Which countries have a provident fund?

Provident funds are common across Asia. Singapore has the Central Provident Fund, India the Employees' Provident Fund, Malaysia its own Employees Provident Fund, and Hong Kong the Mandatory Provident Fund. Several other countries, including parts of Africa and the Pacific, run similar schemes. Each has distinct rates, ceilings and withdrawal rules.

Do both the employer and employee pay in?

In most schemes, yes. The employer withholds the employee's contribution from salary and adds its own share on top, then remits the combined amount to the fund. The split between employer and employee varies by country and, in some schemes, by the worker's age or income.

Can employees withdraw provident fund money early?

Usually only under defined conditions. Provident funds are built for retirement, but many allow earlier withdrawals for specified purposes such as housing, healthcare or education, subject to local rules. Full access typically comes at the statutory retirement age or when a worker permanently leaves the country.

Why does a provident fund matter when budgeting a hire?

The employer contribution is a direct, non-negotiable cost of employment in these markets, often a significant percentage of salary. Leaving it out of a hiring budget understates the true cost. It also has to be registered and remitted on time, or the employer faces penalties.

Glossary

Provident Fund

A provident fund is a mandatory retirement savings scheme into which employer and employee each pay a set share of wages. India's EPF applies to wages up to INR 25,000 a month from 17 September 2026. Singapore, Malaysia and Hong Kong run their own schemes.

Reviewed by Teamed's in-house employment-law team·Last updated 20 October 2026

Also known as: mandatory provident fund, employees provident fund

What is Provident Fund?

A provident fund is a compulsory savings scheme, required by law in several Asian markets, that builds a retirement pot for an employee from regular contributions. Both the employer and the employee pay in a fixed share of the worker's salary each month, and the balance, plus investment returns or interest, is paid out on retirement or on meeting other qualifying conditions.

The best known schemes carry local names. Singapore runs the Central Provident Fund, or CPF. India operates the Employees' Provident Fund, or EPF. Malaysia has its own EPF. Hong Kong has the Mandatory Provident Fund, or MPF. Each sets its own contribution rates, salary ceilings, and withdrawal rules.

For an employer, a provident fund is a statutory on-cost, not an optional benefit. Any business hiring in these markets, whether directly or through an employer of record, has to register, deduct, and remit the contributions correctly to stay compliant.

How does a provident fund work?

Each month the employer withholds the employee's share of contributions from pay, adds the employer's own share, and remits the total to the fund or its approved administrator. The money accumulates in the employee's account, earning interest or investment returns, and is released on retirement or when other statutory conditions, such as certain medical or housing needs, are met.

Because the pot is defined by contributions rather than a promised benefit, the eventual payout depends on the rates paid in and the returns the fund earns over time.

What is India's EPF wage ceiling in 2026?

INR 25,000 a month from 17 September 2026, up from INR 15,000. Mandatory EPF contributions of 12% each from employer and employee now run on EPF wages up to that ceiling, so the maximum is INR 3,000 a month from each side.

EPF wages are basic pay, dearness allowance and any retaining allowance, not gross pay. The rates did not change, only the base.

How much does an employer contribute to Singapore's CPF?

For employees aged 55 and below, the employer contributes 17% of the worker's wages to the Central Provident Fund, on top of the employee's own 20%, giving a combined 37%. The rate applies to monthly wages above 750 Singapore dollars and steps down for older age bands.

Is a provident fund the same as a pension?

They serve the same goal but differ in structure. A provident fund is usually a defined-contribution pot: what the worker receives depends on what was paid in and how it grew. A traditional pension often promises a defined benefit based on salary and service. Many countries run one, the other, or both.

Key facts

India EPF wage ceiling: INR 25,000 a month from 17 September 2026Up from INR 15,000. Employer and employee each pay 12% of EPF wages up to the ceiling.Source: Ministry of Labour and Employment, notification S.O. 5109(E), Gazette of India, 17 September 2026· verified 2026-10-20
Singapore CPF employer rate: 17% of wages for employees aged 55 and below, on monthly wages above SGD 750.The employee adds 20%, for a combined 37%. Rates step down for older age bands.Source: Central Provident Fund Board, Singapore· verified 2026-10-20
Malaysia EPF employer rate: 13% of monthly wages up to RM5,000, and 12% aboveThe employee pays 11%. There is no wage ceiling for mandatory contributions. Rates are for Malaysian citizens and permanent residents under 60.Source: Employees Provident Fund (KWSP), employer mandatory contribution rates· verified 2026-10-20
Hong Kong MPF: 5% each, on relevant income between HKD 7,100 and HKD 30,000 a monthThe most either side pays is HKD 1,500 a month. Below HKD 7,100 the employer pays 5% and the employee pays nothing.Source: Mandatory Provident Fund Schemes Authority, mandatory contributions for employees· verified 2026-10-20

Provident funds by country

Scheme	Employer	Employee	Ceiling a month
India EPF	12%	12%	INR 25,000
Singapore CPF	17%	20%	SGD 8,000
Malaysia EPF	13% to RM5,000, 12% above	11%	None
Hong Kong MPF	5%	5%	HKD 7,100 to 30,000

Frequently asked questions

Who do these provident fund rates cover?
India: the INR 25,000 ceiling applies from 17 September 2026, up from INR 15,000, and the rates are on EPF wages, which are basic pay plus dearness allowance, not gross pay. Of the employer's 12%, 8.33% goes to the pension fund and 3.67% to the EPF account. Singapore: the ceiling is for ordinary wages, and the rates are for citizens and permanent residents in their third year or later, aged 55 and below, on monthly wages above SGD 750. Malaysia: the rates are for citizens and permanent residents under 60, with non-Malaysian employees paying 2% each side from October 2025 wages, and no wage ceiling. Hong Kong: the figures are a floor of HKD 7,100 and a cap of HKD 30,000 a month of relevant income. The employee pays nothing below the floor and the employer still pays 5%, and above the cap each side pays HKD 1,500 a month. Figures were read from the official sources listed on this page on 20 October 2026.
What is the provident fund ceiling in India?
INR 25,000 a month of EPF wages from 17 September 2026. It was INR 15,000 before. Mandatory EPF contributions of 12% from the employer and 12% from the employee are charged on wages up to the ceiling.
Which countries have a provident fund?
Provident funds are common across Asia. Singapore has the Central Provident Fund, India the Employees' Provident Fund, Malaysia its own Employees Provident Fund, and Hong Kong the Mandatory Provident Fund. Several other countries, including parts of Africa and the Pacific, run similar schemes. Each has distinct rates, ceilings and withdrawal rules.
Do both the employer and employee pay in?
In most schemes, yes. The employer withholds the employee's contribution from salary and adds its own share on top, then remits the combined amount to the fund. The split between employer and employee varies by country and, in some schemes, by the worker's age or income.
Can employees withdraw provident fund money early?
Usually only under defined conditions. Provident funds are built for retirement, but many allow earlier withdrawals for specified purposes such as housing, healthcare or education, subject to local rules. Full access typically comes at the statutory retirement age or when a worker permanently leaves the country.
Why does a provident fund matter when budgeting a hire?
The employer contribution is a direct, non-negotiable cost of employment in these markets, often a significant percentage of salary. Leaving it out of a hiring budget understates the true cost. It also has to be registered and remitted on time, or the employer faces penalties.

Related terms

Note

This is general information, not legal advice. Statutory rules vary by country and change over time.

Glossary

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Last verified 2026-10-20