Page 1 of 1

Question about CPF cut

Posted: Thu, 06 Aug 2020 10:08 pm
by hellrage
Hi Guys,
I'd like to ask about CPF cut; let's say my monthly salary is around SGD$5k. I understand when you converted to Singapore Permanent Resident there will be 20% CPF cut/contribution.

My salary component is composed of MS/CS (Monthly/Consol Salary) and MVC (Monthly Variable Component) both add up to $5k in total. My question is, will CPF Cut deducted from my total $5k salary or only from MS/CS?

Thank you.

Re: Question about CPF cut

Posted: Fri, 07 Aug 2020 7:37 am
by x9200
hellrage wrote:
Thu, 06 Aug 2020 10:08 pm
Hi Guys,
I'd like to ask about CPF cut; let's say my monthly salary is around SGD$5k. I understand when you converted to Singapore Permanent Resident there will be 20% CPF cut/contribution.

My salary component is composed of MS/CS (Monthly/Consol Salary) and MVC (Monthly Variable Component) both add up to $5k in total. My question is, will CPF Cut deducted from my total $5k salary or only from MS/CS?
From the total amount. Also all your bonuses (if any) are subject to cpf.

Re: Question about CPF cut

Posted: Fri, 07 Aug 2020 8:35 am
by PNGMK
The CPF deduction ramps up in time (over three years) as well. Also your employer will probably try to find a way to claw back the employer components (which is why, quite reasonably, employers aren't keen on EP holders becoming PR, when I applied I had to agree that the ER could deduct his share from my wages).

Re: Question about CPF cut

Posted: Fri, 07 Aug 2020 10:24 pm
by hellrage
x9200 wrote:
Fri, 07 Aug 2020 7:37 am
hellrage wrote:
Thu, 06 Aug 2020 10:08 pm
Hi Guys,
I'd like to ask about CPF cut; let's say my monthly salary is around SGD$5k. I understand when you converted to Singapore Permanent Resident there will be 20% CPF cut/contribution.

My salary component is composed of MS/CS (Monthly/Consol Salary) and MVC (Monthly Variable Component) both add up to $5k in total. My question is, will CPF Cut deducted from my total $5k salary or only from MS/CS?
From the total amount. Also all your bonuses (if any) are subject to cpf.
@X9200 ok noted with thanxs.

Re: Question about CPF cut

Posted: Mon, 31 Aug 2020 1:39 pm
by TropicalExpat
I would be surprised if on your salary you get PR though.

If your total compensation is 5k per month, then it suggests your monthly salary is below that.