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About CPF

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Bluee
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About CPF

Postby Bluee » Mon, 22 May 2006 1:20 pm

I received an offer letter from a Singapore company and according to of of the clause as follow:

7.5 - Central Provident Fund contributions will be made on your behalf by deducting from your monthly salary the proportionate share of your liability to such contributions which are in force from time to time.

My question was, I am not a PR and this is my first time working in Singapore. Understood that I am exempted from CPF contribution if I'm a foreign worker, assuming I'm having a work permit or S pass.

But when I asked the HR, she told me that there's a little amount of CPF contribution will deduct from my monthly salary.

Wondering, am I suppose to pay for CPF? If not why she said so?

Thanks in advance.

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guruvishwanath
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Postby guruvishwanath » Mon, 22 May 2006 4:01 pm

There have been some changes in the law. By rights, if you are a EP holder, you dont have to contribute. Best is to call Immigration or Ministray of Manpower. They can guide you better.

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Postby Bafana » Mon, 22 May 2006 4:03 pm

If your not a citizen or a PR you do not have to pay CPF.

My advise is to call MOM or ICA (in Victoria St) and ask them.

It looks like your new company is trying to rip you off.
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sundaymorningstaple
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Postby sundaymorningstaple » Mon, 22 May 2006 6:20 pm

Most definately NO. Only Citizens and Permanent Residents have to contribute to CPF.

However, There is an arrangement whereby you can contribute but it is not tax free nor tax deductible. Most employers will not do it anyway, but in any case they would have to have your permission before doing so.

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Postby jpatokal » Tue, 23 May 2006 10:11 pm

sundaymorningstaple wrote:Most definately NO. Only Citizens and Permanent Residents have to contribute to CPF.

However, There is an arrangement whereby you can contribute but it is not tax free nor tax deductible. Most employers will not do it anyway, but in any case they would have to have your permission before doing so.

I believe it's no longer even possible for EP holders to contribute to CPF, even if they want to. PRs, on the other hand, must. (As long as they're getting paid salaries, that is...)
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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 23 May 2006 10:21 pm

jpatokal wrote:
sundaymorningstaple wrote:Most definately NO. Only Citizens and Permanent Residents have to contribute to CPF.

However, There is an arrangement whereby you can contribute but it is not tax free nor tax deductible. Most employers will not do it anyway, but in any case they would have to have your permission before doing so.

I believe it's no longer even possible for EP holders to contribute to CPF, even if they want to. PRs, on the other hand, must. (As long as they're getting paid salaries, that is...)



Yup, looks like they've done away with that as well now. I stand corrected.

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riversandlakes
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Postby riversandlakes » Wed, 24 May 2006 4:45 am

EP holders do not contribute to the CPF. It becomes mandatory upon becoming SPR.

Your firm is being very "creative".
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jpatokal
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Postby jpatokal » Wed, 24 May 2006 8:59 pm

riversandlakes wrote:EP holders do not contribute to the CPF. It becomes mandatory upon becoming SPR.

Your firm is being very "creative".

No, I think it's just a standard boilerplate. The company is saying that your portion of the CPF will be deducted from your salary automatically, which is standard practice. The "...which are in force from time to time" means that they'll deduct the government-specified percentage -- which, for EPs, is 0%.

So I wouldn't worry about it. If they do start deducting CPF from your salary as an EP, then you can go raise hell -- it would certainly be fraud on the company's part to deduct and not pass it on to CPF!
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Postby miguel » Fri, 26 May 2006 2:17 pm

jpatokal wrote:
riversandlakes wrote:EP holders do not contribute to the CPF. It becomes mandatory upon becoming SPR.

Your firm is being very "creative".

No, I think it's just a standard boilerplate. The company is saying that your portion of the CPF will be deducted from your salary automatically, which is standard practice. The "...which are in force from time to time" means that they'll deduct the government-specified percentage -- which, for EPs, is 0%.

So I wouldn't worry about it. If they do start deducting CPF from your salary as an EP, then you can go raise hell -- it would certainly be fraud on the company's part to deduct and not pass it on to CPF!


i agree with jpatokal.

its standard writing in the contract of employment that there are some deductions blah blah blah "IN VIRTUE OF ANY LAW IN SINGAPORE"

i'm an EP holder and its also written in my contract. but when i received my salary, there are no deductions.

so bluee, wait till your salary comes then if there are deductions you can take it up with your company. if they don't do anything about it, proceed to MOM and make an inquiry.


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