Fired for SPR's CPF (Central Provident Fund)?

[Guest]

Went to www.e-citizens.gov.my (I think?) and it states there P1/P2/Q1/S holders will be on the CPF scheme the day the SPR is approved.

Does this mean both parties must contribute to the CPF then?

Now that the firm needs to pay more, any stories of foreign workers been fired or "laid off" because of this?

I am planning to apply for SPR more for stability and security reasons, rather than the few hundred bucks per month (also taken away from me) and was kinda worried...

[Guest]

Go ahead.

One of the requirement for SPR application is company support.
Then why will your company fires you, if they supported your SPR application.

[sundaymorningstaple]

Went to www.e-citizens.gov.my (I think?) and it states there P1/P2/Q1/S holders will be on the CPF scheme the day the SPR is approved.

Does this mean both parties must contribute to the CPF then?

Now that the firm needs to pay more, any stories of foreign workers been fired or "laid off" because of this?

I am planning to apply for SPR more for stability and security reasons, rather than the few hundred bucks per month (also taken away from me) and was kinda worried...

To answer your questions, yes both parties must contribute, but at reduced rates for the first 2 or 3 years gradually building up to the full deduction/contribution.

Yes there are stories of foreign workers being laid off even though they may have sponsored the worker. What usually happens however, is that your contract will be re-negotiated and you will possibly lose any perks like housing, transport allowances, schooling, home leave tickets, etc., etc. that you might have enjoyed as an EP holder (as an SPR you are no longer an Expat - in the Singaporean definition that is). As a Foreigner, and a non-citizen you are in fact an Expatriate of your own country.

There are a number of pros and cons to getting PR as I'm sure you have already mulled over before coming to your decision.

Hope this helps.

sms

[riversandlakes]

thank you for your replies!

i've seen the reduced contribution rates of single percentage digits for the both parties. as per the contract there is no allowance involved. guess i'll just have to prove my not-so-dispensable worth the ol' fashion way, huh?
my contract just states the firm will pay for the CPF contribs per legal requirements, but P/Q/R holders won't be required to pay for CPF. so when i apply for the SPR the firm will be legally obliged, which was why i worry...

i've yet to find a website that states the adv and disadv of being an SPR.

besides being forced to join the CPF scheme (as in no longer a choice), what are the disadvs? just to name a few?

[riversandlakes]

but i read that company sponsorship (support?) is not a pre-req for SPR application?

Go ahead.

One of the requirement for SPR application is company support.
Then why will your company fires you, if they supported your SPR application.

[sundaymorningstaple]

riversandlakes

You are correct regarding the sponsorship (required for the EP only). I did not bother to bring this up as I had assumed wrongly that this wasn't the question.

The disadvantages are few but major (again depending on your situation). First is the CPF issue. This one I have discussed in previous threads but to put it succinctly, the rate of return of 2.6 - 4% return on your contributions can be bettered outside. I tend to disagree as the "average joe" is not capable of outwitting the CFA's who have not performed quite so well in recent years. Another way of looking at it is that it is a forced savings account which also provides you with a major medical insurance as well as paying you interest on that medical stockpile @ 4%. When you decide to leave Singapore you will be allowed to take out all including interest (but if you ever decide to return to Singapore you will have to replace all including the interest that would have accrued had it not been withdrawn.)

The other disadvantage is your male children may well have to do National Service here. If you are looking at this kind of duration it may well do you to investigate this further. I am a PR and have been one for many years (been in Singapore for 23+years). I also have a son who is Singaporean by birth (Mother is Singaporean) and will have to do NS in about 2.5 more years) No, I am not going to get him out of Singapore to avoid it as I think all males should do some form of military service. I will not discuss this at length, suffice it to say, that I've been there and done that (in war time) and my son agrees.

One last thing I might inject is that I hope you are thinking about obtaining PR for the proper reasons and not just doing it to abuse the system to the detriment of other individuals who actually "want to be permanent residents" and not just to avoid having to leave when they lose their jobs, etc., etc. There are lots of them here nowadays with that attitude and unfortunately and this makes it harder for us who actually want to stay here and have tried to put down roots as it were.

Hope this helps in some small way.

sms

[riversandlakes]

sms, thanks!

may i ask what this "salary ceiling" means in respect to CPF? that it was lowered from S$5,500 to $5,000 a few years back? i read it on various websites, just wishing someone somewhere has defined it...

"not just to avoid having to leave when they lose their jobs"
oopsy, that's my reason for applying for SPR :/ but perhaps it's just that the rooting question is still a few stages away from me

[k1w1]

I know someone whose employer does not contribute their CPF contributions, but reduced their salary to cover the CPF, (saying it was only fair to the other foreign staff). There are no benefits, so that wasn't the issue. Can anyone tell me whether this is allowed?

[sundaymorningstaple]

may i ask what this "salary ceiling" means in respect to CPF? that it was lowered from S$5,500 to $5,000 a few years back?

riversandlakes,

It means your CPF contributions are based on a ceiling of 5 or 5.5K / month. e.g., if the rate is 20 + 16% or 36% total (this rate would not happen to you until your 3rd year) then your CPF contribution would be 36% of 5,500 or 1980.00 per month of which 1100.00 would come from your salary and the remaining from your employer. Even if you earned 8000/month the maximum contribution per month would still be 1980.00.

I hope you eventually change your opinion for your reasons for getting PR as it is rather selfish due to the quotas that Singapore has. (No real offense meant )


k1w1,

Unfortunately, Singapore is an Employers market and the employee has almost no rights at all. The employment contract you sign is virtually worthless as far as protecting the employee is concerned as almost all contracts have a clause in them somewhere allowing the employer to change it at any time. As far as what you propose, it happens all the time and because you are changing your entire status of hire it's up to you to either accept or walk. This is often the reason why new PR's quit as soon as they have gotten there PR.

sms

[riversandlakes]

It's no longer an option once one becomes an SPR to not contribute to CPF. That's a huge chunk taken out of my paycheck.

But I guess I'll cross the bridge when I come to it.

Thanks a lot, sms!