SPR salary

[kingsabs]

Hi All,

Greetings. This is my first post in this forum.

Very recently i got my PR approved and before i was working in EP.

My salary changes has come with CPF contributions, where my employer says both employer and employee contributions will be deducted from my salary whereas no agreement has been made on the CTC after PR approval. Also, employer says after PR salary changes are bound to take place for all.

Hence i can see a huge difference in my previous payslips to the current payslip. So if i look for the next job they consider only my current pay slip and not the previous one. So i see a huge dip in my take home scale.

Please advise on what needs to be done.

Thanks.

[Wd40]

Hi All,

Greetings. This is my first post in this forum.

Very recently i got my PR approved and before i was working in EP.

My salary changes has come with CPF contributions, where my employer says both employer and employee contributions will be deducted from my salary whereas no agreement has been made on the CTC after PR approval. Also, employer says after PR salary changes are bound to take place for all.

Hence i can see a huge difference in my previous payslips to the current payslip. So if i look for the next job they consider only my current pay slip and not the previous one. So i see a huge dip in my take home scale.

Please advise on what needs to be done.

Thanks.

Very common in many IT contracting companies. I know colleages of mine affected in the past because by the 3rd year of CPF contribution their cash flow reduced so much that they quit Singapore altogether and went back home or to another developed country.

[sundaymorningstaple]

What should have been done is far too late to contemplate. You should have though about that possibility when you took the job. e.g., you should have contemplated whether or not you would be thinking about PR in the future and negotiated accordingly. Now you are stuck with bad foresight. Your only hope is negotiating you way out of it. Anyway, with the government subsidies it should make up the differences. The only difference between you current payslip and a future payslip as far as basic wages are concerned will be a maximum of 16% of 5,000. The other 20% is the employee contribution and that figure is not figured in when giving your basic salary (basic salary is not take home salary).

[the lynx]

Meh. It is normal. Why should the employer pay to your coffers more if your decision to take up PR is a personal choice?

[ecureilx]

Meh. It is normal. Why should the employer pay to your coffers more if your decision to take up PR is a personal choice?

then again, the 'fair' companies I have seen/worked for, have budgeted the Employers contribution, and add it to the base salary of the employee's negotiated pay, for Foreigners.

And once the person gets PR they just take the amount off the full Employers contribution (the Employer's contrib that they have been paying to the employee ..)

In a way, a colleague whined that he lost 36% of his pay, when in reality, he forgot to tell me that the 16% had been coming as bonus on top of his negotiated pay !!!

then again, if the employer wants to take all out of your pocket, and it was not a bonus as in above example, then you can a) quit, or b) accept it as 36% saved every month

If you are the types who believe they have a better saving plan, and CPF is WRONG, like many Sub-Continentals do, then by all rights, you can quit !!

[PNGMK]

Hi All,

Greetings. This is my first post in this forum.

Very recently i got my PR approved and before i was working in EP.

My salary changes has come with CPF contributions, where my employer says both employer and employee contributions will be deducted from my salary whereas no agreement has been made on the CTC after PR approval. Also, employer says after PR salary changes are bound to take place for all.

Hence i can see a huge difference in my previous payslips to the current payslip. So if i look for the next job they consider only my current pay slip and not the previous one. So i see a huge dip in my take home scale.

Please advise on what needs to be done.

Thanks.

This is quite normal. Most employers aren't going to give you (in effect) a $800 month (ER contribution) bonus because you became PR - they're going to take it out of your salary. I guess you thought they should give you $1800 a month (ER and EE) with no effect on your take home pay? Moron.

[ecureilx]

Hi All,

Greetings. This is my first post in this forum.

Very recently i got my PR approved and before i was working in EP.

My salary changes has come with CPF contributions, where my employer says both employer and employee contributions will be deducted from my salary whereas no agreement has been made on the CTC after PR approval. Also, employer says after PR salary changes are bound to take place for all.

Hence i can see a huge difference in my previous payslips to the current payslip. So if i look for the next job they consider only my current pay slip and not the previous one. So i see a huge dip in my take home scale.

Please advise on what needs to be done.

Thanks.

This is quite normal. Most employers aren't going to give you (in effect) a $800 month (ER contribution) bonus because you became PR - they're going to take it out of your salary. I guess you thought they should give you $1800 a month (ER and EE) with no effect on your take home pay? Moron.

Maybe OP thought his pay will go up, with PR, considering the Employer contribution being added

Sadly not so ...

[PNGMK]

Hi All,

Greetings. This is my first post in this forum.

Very recently i got my PR approved and before i was working in EP.

My salary changes has come with CPF contributions, where my employer says both employer and employee contributions will be deducted from my salary whereas no agreement has been made on the CTC after PR approval. Also, employer says after PR salary changes are bound to take place for all.

Hence i can see a huge difference in my previous payslips to the current payslip. So if i look for the next job they consider only my current pay slip and not the previous one. So i see a huge dip in my take home scale.

Please advise on what needs to be done.

Thanks.

This is quite normal. Most employers aren't going to give you (in effect) a $800 month (ER contribution) bonus because you became PR - they're going to take it out of your salary. I guess you thought they should give you $1800 a month (ER and EE) with no effect on your take home pay? Moron.

Maybe OP thought his pay will go up, with PR, considering the Employer contribution being added

Sadly not so ...

Yes - that seems to be the common assumption. When I applied many years ago my employer was explicitly clear that all CPF costs (as he views them - quite correctly) would come off my salary.

[Wd40]

Yes - that seems to be the common assumption. When I applied many years ago my employer was explicitly clear that all CPF costs (as he views them - quite correctly) would come off my salary.

Interesting! A few threads back when I mentioned this same thing in a slightly different way i.e. "EP holders in most companies already get CPF contribution in their pay" everybody pounced on me, MiAmigo especially!

[JR8]

Yes - that seems to be the common assumption. When I applied many years ago my employer was explicitly clear that all CPF costs (as he views them - quite correctly) would come off my salary.

Interesting! A few threads back when I mentioned this same thing in a slightly different way i.e. "EP holders in most companies already get CPF contribution in their pay" everybody pounced on me, MiAmigo especially!

Well I don't know. When I was an EP holder CPF never came into discussion, consideration or my remuneration.

What I would imagine though, it that if I were the employer, and I was not involved and supportive of the PR application, I would be most unhappy to essentially be held to ransom now that said application has been approved. That would be akin to foisting a pay-rise on them, and hence I wouldn't be surprised if they turn it around (rightly or wrongly) and foist it right back on you.

Unfortunately you don't seem to have sat down and worked through the ramifications of getting PR beforehand. But perhaps you might console yourself with the knowledge that the deductions are being invested for you, plus now with PR you are outside the corporate EP quota system.

[sundaymorningstaple]

Twas never a consideration in my salaries either. When I got PR the employer started deducting the employee contribution from my salary and they paid the employers portion (and this was back when it was still 40% 20:20 ). But I was a damned good asset to the company so I reckon they still got a heck of a deal!

[Wd40]

20:20 is really nice. Why did was it reduced? I believe it was only recently that it was increased to 20:16 which means it was even lower before that.

[the lynx]

Yes - that seems to be the common assumption. When I applied many years ago my employer was explicitly clear that all CPF costs (as he views them - quite correctly) would come off my salary.

Interesting! A few threads back when I mentioned this same thing in a slightly different way i.e. "EP holders in most companies already get CPF contribution in their pay" everybody pounced on me, MiAmigo especially!

That's because only a fraction of companies do that to their EP holders. Most cut both contributions, some give ER only, some give both (meaning take-home pay is not affected)!

I only have anecdotal evidence on my end about the above.

[sundaymorningstaple]

20:20 is really nice. Why did was it reduced? I believe it was only recently that it was increased to 20:16 which means it was even lower before that.

Equal contributions peaked in 1985 at 25% each but after 1986 (at 20% each) that was the end of equal contributions. I wasn't a PR yet but as an EP holder we also had to pay CPF contributions then.

Mandatory CPF Contributions for EP holders was stopped in 1995 and voluntary contributions by EP holders were stopped a couple of years later but I cannot remember the actual year that this happened nor can I find it on the CPF site.

[Wd40]

20:20 is really nice. Why did was it reduced? I believe it was only recently that it was increased to 20:16 which means it was even lower before that.

Equal contributions peaked in 1985 at 25% each but after 1986 (at 20% each) that was the end of equal contributions. I wasn't a PR yet but as an EP holder we also had to pay CPF contributions then.

Mandatory CPF Contributions for EP holders was stopped in 1995 and voluntary contributions by EP holders were stopped a couple of years later but I cannot remember the actual year that this happened nor can I find it on the CPF site.

Interesting. Thanks!