There are a couple of clarifications required and an error needs to be corrected in the above statement.Turtle wrote:CPF is like a government pension scheme. The way it works is that every month, your employer is responsible for paying a certain amount into your CPF, based on your earnings for that month. Your employer is allowed, if they choose, to deduct part of this payment from your monthly salary.
"Employer CPF" refers to the part that the employer cannot deduct from you, therefore it is not deducted from your salary.
"Employee CPF" refers to the part that the employer can (and in this case will) deduct from your salary.
As others have said, it's only applicable to Singapore Citizens and Permanent Residents. You can choose to contribute voluntarily (but cannot force your employer to do so) even if you're not one of the above, but there's no reason you'd want to, to be honest. It's basically lending money to the government at an interest rate that nobody in their right mind would agree to if they had a choice in the matter.
Income Tax is a totally different matter - it is totally the employee's responsibility to file their own taxes. Your employer will provide you with what's known as an "IR8A" form which states the amount of salary, benefits etc that you have received, so you can file your taxes based on that. But there is no withholding of employee's income tax in Singapore.
Users browsing this forum: No registered users and 1 guest