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SPR CPF Rates

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
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the lynx
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Postby the lynx » Wed, 02 Apr 2014 8:53 am

x9200 wrote:It says deducted in the OP post. Besides, what also maters is what this is in reality, not whether this is called this or that way.


I agree with PNGMK and rduejj.

Essentially it is still his money, just channelled to a different place for him to use it in different ways.

This is not one of those kickback schemes where an employer declares a foreign employee's salary as $4000 just to get him EP and then deducts $1000 every month to match his 'actual' salary.

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Postby Beeroclock » Wed, 02 Apr 2014 9:59 am

x9200 wrote:It says deducted in the OP post. Besides, what also maters is what this is in reality, not whether this is called this or that way.
I suspect OP was quoting from my post one earlier, as the wording exactly same as what I wrote, rather than his contract. So maybe the contract says adjusted or revised down to offset employer cpf contribution, or some more legally appropriate words. It seems a widespread practice even in International Schools here, so if it's illegal it is definitely not being enforced as such. As others said, IMHO from the employer perspective it is only fair to maintain the overall remuneration (including cpf) as the base case. After that, if parties mutually agree something different then there is nothing to stop that.

OP did you consult your employer before you decided to apply for PR ?

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Postby x9200 » Wed, 02 Apr 2014 10:35 am

the lynx wrote:
x9200 wrote:It says deducted in the OP post. Besides, what also maters is what this is in reality, not whether this is called this or that way.


I agree with PNGMK and rduejj.

Essentially it is still his money, just channelled to a different place for him to use it in different ways.

The difference is PNGMK, rduejj and yourself talk about practicabilities while I am talking about the legal side. Sure it is his money but for some reason the legislator came up with such system that both, the employer and the employee have to contribute. If there is a clear indication that the employer contributes using the employees salary then this is only the employee contributing. As simple as this. Why do you think some mature and legally aware companies goes via bonus or other non-base-salary related rewarding systems to address this issue?

TBH I don't think CPF will punish any company based on this, especially if this a first offense, but this does not make it legal.

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Postby rdueej » Wed, 02 Apr 2014 2:35 pm

x9200 wrote: Why do you think some mature and legally aware companies goes via bonus or other non-base-salary related rewarding systems to address this issue?


I think this is how it might work out in practice.

The OP seems to say that his salary is being deducted. If his salary was structured something like base + retirement allowance + ... , the retirement allowance portion could now be diverted into CPF.

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Postby Beeroclock » Wed, 02 Apr 2014 2:44 pm

Beeroclock wrote:.... Some employers will even include a clause in employment contract stating if employee becomes PR then employer contributions to be deducted from salary.


alibaba1984 wrote:Yea, there is one clause in my employment contract stated that "... if employee becomes PR then employer contributions to be deducted from salary... "


As already mentioned, it looks to me like OP is quoting me, not his employment contract, in which case the "deduction" phrasing is my practical description rather than his employment contract which probably has a more legally acceptable wording.

For info, I have seen elsewhere the following clause used :

The remuneration provided herein shall include any amounts payable for both employer and employee contributions to the CPF

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Postby x9200 » Wed, 02 Apr 2014 3:59 pm

Understood. Just wanted to point out that it should not be removed/adjusted/deducted within the base salary.

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Postby PNGMK » Wed, 02 Apr 2014 4:36 pm

x9200 wrote:Understood. Just wanted to point out that it should not be removed/adjusted/deducted within the base salary.


In a fire at will country... the employer will win this argument.

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Postby x9200 » Wed, 02 Apr 2014 5:09 pm

Maybe. But it will lose also for the bonuses workaround solution in any EU country.


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