Singapore Expats

Hi All,
I need your experience or advise about how is your CPF arrangement between you and company when your PR is approved.

Now, I got my PR approved by ICA. But Im facing a problem since my company will deduct CPF from my basic salary (both employee and company portion).


My questions :
1. How is usually the CPF arrangement when you got your PR ? Does company pay CPF on top of your basic salary or they deduct from your salary ?
2. I signed my offer letter when my status as EP holder and in the offer letter says :
"In the event of employee becoming a PR of singapore (if and when approved by the singapore immigration department) or in the case of singaporean, if changes are made to the existing structure of the CPF by the government effects such changes will be deduct from the gross salary".
Is this best practise legal in singapore ? Because according to CPF that it is a contribution from 2 party (employee and company)
3. If you were me, are you going to accept it and let the company deduct CPF from basic salary ? or ask CPF to handling this case ?

Please advise.

Thanks and Regards,
Maria


"

Why should your employer suddenly pay a higher salary because you decided to become PR?

If you can answer to that I think you have the answer...

Hi,

Thanks for reply.

According to CPF, it is mandatory for both employee and company to contribute CPF, does it mean that they against the law ?

Please advise.

Regards,

Carpe Diem wrote:Why should your employer suddenly pay a higher salary because you decided to become PR?

If you can answer to that I think you have the answer...

In normal cases, these should been sorted out before you had applied for the PR. As when the company sign the form and gives a letter stating that you are working with them, the salary issues like raise and deduction has to be discussed.

In case you haven't done that before, it is quite legal for the company to deduct the amount (employeer+employee) from your salary. The option you have left is to speak with your HR and ask for an salary increment if possible.

cheers

noble_cute wrote:Hi All,
I need your experience or advise about how is your CPF arrangement between you and company when your PR is approved.

Now, I got my PR approved by ICA. But Im facing a problem since my company will deduct CPF from my basic salary (both employee and company portion).


My questions :
1. How is usually the CPF arrangement when you got your PR ? Does company pay CPF on top of your basic salary or they deduct from your salary ?
2. I signed my offer letter when my status as EP holder and in the offer letter says :
"In the event of employee becoming a PR of singapore (if and when approved by the singapore immigration department) or in the case of singaporean, if changes are made to the existing structure of the CPF by the government effects such changes will be deduct from the gross salary".
Is this best practise legal in singapore ? Because according to CPF that it is a contribution from 2 party (employee and company)
3. If you were me, are you going to accept it and let the company deduct CPF from basic salary ? or ask CPF to handling this case ?

Please advise.

Thanks and Regards,
Maria


"

From my understanding, every employee is responsible to pay the employee's CPF, and that will be deducted as per your GROSS salary..and employer are suppose to pay their part, not deduct from your salary!! But since you sign the letter of offer stating as above, they can use that against you!! I'm curious, didn't you intend to apply for PR when you first agreed on the conditions in the letter offer? Or you didn't read it carefully? Coz when everything is in black and white, and you sign it (meaning you agree to the terms & conditions), i think its gonna be quite difficult for you to fight for your right!!

What I can advise is for you to check with the CPF board about this matter, i think they're the best person to answer your doubts! Worst come to worst, take this valuable lesson and ALWAYS READ the contents of the letter of offer / contract, if necessary word by word, before you sign, coz once you sign it means you agree and if you're going against it, means you're breaching the agreement! Legally they win, and you lose!

Good luck!! And hope everything works out wel for you!!

kitin82 wrote:
From my understanding, every employee is responsible to pay the employee's CPF, and that will be deducted as per your GROSS salary..and employer are suppose to pay their part, not deduct from your salary!! ...

Hey Kitin82, are you sure about the total CPF (employer+employee) is normally deducted from the gross salary!!!!

Scorpion wrote:

kitin82 wrote:
From my understanding, every employee is responsible to pay the employee's CPF, and that will be deducted as per your GROSS salary..and employer are suppose to pay their part, not deduct from your salary!! ...

Hey Kitin82, are you sure about the total CPF (employer+employee) is normally deducted from the gross salary!!!!

Ehrmm.. that's from my understanding, coz my husband's CPF is deducted as per gross salary. So all your allowance, overtime, bonuses, and any kind of extra earnings will be included too.

Scorpion, r u under PR or EP?

Am not an PR here but my HR has been requesting me to do so as its been already 4+years with my company. Most of my colleg'z are permanent residence and have gone through this process many times. Where botht the CPF amount gets deducted from the gross salary.

But normally from my company there will be an % of salary rise when you apply for the PR to compensate the CPF.

cheers