vah wrote:Hello, I have been getting conflicting advice regarding how my take home pay will change if I apply for PR and it got approved (I am currently on Employment Pass). Will I get the same take home pay + employer has to contribute to CPF ? or will employer contribute to CPF from my take home pay, essentially cutting my take home pay ? Or does it differ based on company policy ?
thank you in advance.
I have heard stories of this from this forum and if i remember correctly from some other forums.
I have seen this. But it is purely illegal to do so.bro75 wrote: ↑Tue, 29 Oct 2019 4:53 pmI have heard stories of this from this forum and if i remember correctly from some other forums.
I have not experienced this first hand or second hand though since my employer did the correct thing when I converted.
Let us take an example. Someone has got his PR with his basic salary as 6000 SGD. ICA has approved his PR based on the assumption that 6000-1200 (CPF for employee) will be his take home. If they deduct 6000-1200-1000 (CPF for both employer and employee) his take home will be around 3800. In that case, ICA surely wont grant him a PR.sundaymorningstaple wrote: ↑Tue, 29 Oct 2019 6:00 pmNot necessarily so, SF. If, like our contracts before I retired, there was a codicil in that contract that stated that a contract would be negotiated IF a Foreign Employee were to take up PR or SGC, then it's perfectly legal, and a lot of them do just that.
Agree. What I am saying is that salary alone is not the only factor, but if ICA knew that his take home would be 3800, I doubt they would have approved it.sundaymorningstaple wrote: ↑Tue, 29 Oct 2019 6:06 pmTrue, but the employee should know better than to sign that contract as well. Again, that is assuming the only reason he got his PR was because of his $6K salary. We already know that you can earn downwards of $4.5K and even lower if you are from M'sia and still get PR.
Baloney. It's a matter of negotiation. When I applied for PR and needed a support letter in 1994 my employer (Sam Sassoon) made it clear that I would be expected to bear the EE and ER CPF from my salary as a quid pro quo for supporting my PR. In those days it was note a tapered hit either. If it's in the open and the employee goes forward with the application why should the employer cover the additional cost?
This. As others in the thread have shared, some companies expect not to be 'financially penalized' and therefore reduce your basic pay.
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