How is the social security system set up in Singapore?

Singapore's social security framework is multifaceted, focusing on compulsory savings, healthcare, and employment support. The Central Provident Fund (CPF) lies at its core, mandating contributions from both employees and employers to fund retirement, healthcare, and housing needs. MediShield Life provides basic health insurance for all citizens, offering protection against large hospital bills, while the Workfare Income Supplement Scheme boosts the incomes and retirement savings of low-wage workers. Additionally, various schemes support family welfare, education, disability, and unemployment, illustrating Singapore's comprehensive approach to social security and public welfare.

The Central Provident Fund (CPF) in Singapore is a comprehensive social security savings plan requiring contributions from both employers and employees. It aims to provide Singaporeans with a sense of security and confidence in their retirement through savings, healthcare, and housing needs. Members see their savings grow via contributions throughout their working life, to be used for retirement income, healthcare expenses, and home purchases, ensuring a solid foundation for their future.

MediShield Life is a basic health insurance plan in Singapore, covering all Singaporean citizens and Permanent Residents against large hospital bills and certain outpatient treatments, regardless of age or health condition. It's designed to complement individual savings in the CPF's MediSave accounts, ensuring that healthcare remains affordable. The plan covers hospitalization, certain outpatient treatments, and includes higher claim limits and lifetime coverage, protecting members throughout their lives. MediShield Life operates on a co-payment basis, encouraging responsible healthcare usage while providing financial protection against high medical costs. 


The Workfare Income Supplement Scheme in Singapore is designed to supplement the incomes and retirement savings of low-wage workers. It targets individuals who are employed and earning a lower income, providing them with additional financial support. This scheme not only boosts their current income but also contributes to their Central Provident Fund accounts, enhancing their financial security in retirement. It's part of Singapore's broader approach to encourage work and self-reliance among its citizens while providing a safety net for the lower-income population.


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