Singapore Expats

Does company need to pay CPF if their eomployee is PR holder (non-citizen)? Same to the PR holder, does one need to pay the 13% CPF if he/ she got a job?

I will give you an idea how CPF deductions work.

1st year of employment as PR
Employee - 14% of yr salary
Employer - 15% of yr salary

2nd year of emplyment as PR
Employee - 17% of yr salary
Employer - 14% of yr salary

and thereafter
Employee - 20% of yr salary
Employer - 13% of yr salary

It's somewhere that percentage. goto www.cpf.gov.sg for more details

Yes. Only for EP is CPF optional.

Javaguy wrote:I will give you an idea how CPF deductions work.

1st year of employment as PR
Employee - 14% of yr salary
Employer - 15% of yr salary

2nd year of emplyment as PR
Employee - 17% of yr salary
Employer - 14% of yr salary

and thereafter
Employee - 20% of yr salary
Employer - 13% of yr salary

It's somewhere that percentage. goto www.cpf.gov.sg for more details

correct me if i'm wrong...so far from what i know the constribution of CPF as follow:

1st year of employment as PR
Employee - 5% of yr salary
Employer - 4% of yr salary

2nd year of emplyment as PR
Employee - 15% of yr salary
Employer - 9% of yr salary

and thereafter
Employee - 20% of yr salary
Employer - 13% of yr salary

No need to contribute CPF for EP holder but EP holder the Tax will be higher than holding PR or citizenship

for clearer info go to: http://www.cpf.gov.sg/cpf_info/goto.asp ... ntriRa.asp

hope it help
J

thnks for the correction.

u r most welcome

cheers
J

Strong Eagle wrote:Yes. Only for EP is CPF optional.

As I far as I understand, after the recent changes EPs can not longer voluntarily pay CPF, but for PR/citizen it's mandatory.

Have question on CPF when switcing JOB. Appreciate your verification on this.

Now my CPF contribution is 33% (20 Employee, 13 Employer). Now I would like to Switch to another job where they contribute CPF. Do they maintain these 33%? OR do I start from the begining which 9%?

thank you
-zinta

Zinta wrote:Have question on CPF when switcing JOB. Appreciate your verification on this.

Now my CPF contribution is 33% (20 Employee, 13 Employer). Now I would like to Switch to another job where they contribute CPF. Do they maintain these 33%? OR do I start from the begining which 9%?

thank you
-zinta

It is not employer based, it is date of gaining PR based. If you got your PR and lost your job and were unemployed for two years, then when you started working again, you contributions would be based on the third year rates.

The first year (365 consecutive days = 9% total)
The second year (365 consecutive days = 24% total)
Starting the third year ( 33% total from then on)

many thanks for the prompt reply!!!

-Zinta

Some companies (like mine) will request the employees who are PR to commit on contributing the full Employee % - 20% of yr salary from the first year of your PR for easier payout.

There are bad and good ..
Bad is that you r 20% broke in your cash out.
Good is that you r 13% rich in your CPF account.

And as this arrangement is between you and your company, based on voluntary action, the goverment do not care. The goverment will still, based on the standard distribution, tax your income+CPF.

Note: CPF contribution is supposedly to be tax-free.

kk_lass wrote:Some companies (like mine) will request the employees who are PR to commit on contributing the full Employee % - 20% of yr salary from the first year of your PR for easier payout.

There are bad and good ..
Bad is that you r 20% broke in your cash out.
Good is that you r 13% rich in your CPF account.

And as this arrangement is between you and your company, based on voluntary action, the goverment do not care. The goverment will still, based on the standard distribution, tax your income+CPF.

Note: CPF contribution is supposedly to be tax-free.

This is fine as far as it goes. Yes CPf contributions are both tax free AND a deduction from gross income (your share of the contributions) up to the amount REQUIRED by law. If you are contributing in excess of the quoted rates as noted above the excess is taxable and not deductible.