cpf contribution
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hi, need some advice…
1. If I agree to be hired by a company as a part timer without getting cpf contribution from the company, is this still considered illegal as a employee?
2. As a part timer, is it a requirment that the employer muz give me remuneration (eg leave and medical benefit)?
3. seems that its common not to receive cpf contribution fr employer? eg casual, ad hoc, part time job… -
Not illegal. Benefits for part timers are up to the employers. Equally common either way.
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The following is cut and paste info fm cpf.gov.sg…can go there take a look…
CPF Contribution for Employees
Your employer is required to pay your CPF contributions every month if you earn more than $50 per month. He/she is entitled to recover the employee’s share from your wages if you earn more than $500 per month.
CPF contributions are payable for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) who are:
working in Singapore under a Contract of Service; and
employed under a permanent, part-time or casual basis.
However, if you are a SC or SPR working overseas, CPF contributions are not mandatory. -
Not really. Spore hv rules & regulations protecting even Part-Time & Contract workers.
https://www.gov.sg/factually/content/will-i-get-cpf-if-im-a-temp-or-contract-worker
Are you:
A Singapore citizen or Singapore permanent resident?
*Employed by someone or a company?
*Earning more than $50 a month?
If you have answered ‘yes’ to all of the above, then you should be paid CPF. This applies whether you are working full-time, part-time, on an ad hoc/casual basis, or if you are on a probationary period. This is required under the CPF Act.
If you earn less than $500 per month, you do not have to contribute the employee share of the CPF. Your CPF contributions are borne solely by your employer.
If you come across employers who are not complying with the above requirements, you can:
Call the WorkRight hotline: 1800 221 9922
Monday to Friday: 8.30am to 5.30pm
Saturday: 8.30am to 1pm
Closed on Sunday and public holidays
Email [email protected]
Call the CPF hotline: 1800 227 1188
Monday to Friday: 8am to 5.30pm
Know your employment rights
Do you have questions about:
•Being paid your salaries on time
•Overtime payment
•Paid annual leave, sick leave and working on public holidays
•Limit on working hours?
Be aware that The CPF Board will take action to recover arrears and late payment interest from companies who do not comply with their CPF obligations.
Similarly, MOM hv laws to protect PT & casual workers. Employers who think they can dictate otherwise or collude with workers to pay higher base & 'sign private contract' to 'forgo' CPF monies for higher take-home pay will face harsh penalties.
The following employees are also eligible for CPF contributions:
Those workers protected covers wide range :-
•Company directors.
•Part-time or casual employees.
•Operationally Ready NSmen on in-camp training. The army is also not exempt fr this law
•Family members of the business owner, if they are receiving wages for work done for the owner.
•Employees concurrently employed by another employer.
Good to be aware of your rights & dues fr any eyer engaging your services or sweat. -
Suddenly so many 军师
I stand corrected on the cpf.
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I was in Human Resources & had been the 1st batch trained to compute benefits for my Part Time staff as a young working adult then. So I know cannot play play. Anyway must adv eyers to be fair to our ppl who work with sweat mah. :evil:
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OT: I prefer my employer to contribute to my cpf though it may mean lesser take home pay
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starlight1968sg:
OT: I prefer my employer to contribute to my cpf though it may mean lesser take home pay
Remember that CPF contribution is in 2 parts: employer and worker. When calculating CPF don't forget it is a form of tax on the worker. It is money taken out of our salary, well... permanently.
That's why many people prefer to have real money in real accounts that they control at will. -
Thanks all for the link. I did see the links b4. but i got more confused becoz there r many jobs wif no cpf contribution, such as grab drivers, food runner, flyer distribution. If this is illegal, why doesn’t mom do something about it?
And y don’t the staff report to mom? So I Assume that there is an agreement signed between employer and employee that says there is no cpf contribution or benefits (medical n leave).
Not really my concern but I do wonder how the small co survive If they need to provide cpf contribution n benefits? Wun there b more unemployment then? Juz a tot. -
just thinking aloud…can they be considered under contract for service ie they are providing a service not as employee?
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jkids:
It depends on the contract. If the person providing a service is considered a \"vendor of services\", then he is not an employee and he need not get cpf or benefits. I have worked under such a contract before (with a govt entity, so I guess it should be legal!).Thanks all for the link. I did see the links b4. but i got more confused becoz there r many jobs wif no cpf contribution, such as grab drivers, food runner, flyer distribution. If this is illegal, why doesn't mom do something about it?
And y don't the staff report to mom? So I Assume that there is an agreement signed between employer and employee that says there is no cpf contribution or benefits (medical n leave).
Not really my concern but I do wonder how the small co survive If they need to provide cpf contribution n benefits? Wun there b more unemployment then? Juz a tot. -
What is vendor of service?
Is tutor considered vendor of service? -
What is vendor of service?
Is tutor considered vendor of service? -
Providing a service? Hmmnnn, is tutor considered in this category too?
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tutor probably under own employed unless is an employee tutor of a ctr..but then can also be under a service provider category ? wah..if got chance to attend cpf talk, need to ask already
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slmkhoo:
slmkhoo, for your case, do you need to establish yourself for at least a sole proprietor or just under normal individual capacity with contract stating ..vendor of services?
It depends on the contract. If the person providing a service is considered a \"vendor of services\", then he is not an employee and he need not get cpf or benefits. I have worked under such a contract before (with a govt entity, so I guess it should be legal!).jkids:
Thanks all for the link. I did see the links b4. but i got more confused becoz there r many jobs wif no cpf contribution, such as grab drivers, food runner, flyer distribution. If this is illegal, why doesn't mom do something about it?
And y don't the staff report to mom? So I Assume that there is an agreement signed between employer and employee that says there is no cpf contribution or benefits (medical n leave).
Not really my concern but I do wonder how the small co survive If they need to provide cpf contribution n benefits? Wun there b more unemployment then? Juz a tot. -
@ ChiefKaisu
Taken out fr salary permanently? Who has that power?
Do recognize that eyee earning under $500 will be not need to contribute towards their CPF, but the eyer is not exempt and need to contribute eyer's contribute towards building eyee's CPF A/C. You can obtain a copy of CPF Contribution Amount Table to guide what's obligation rates for both parties. It can also be downloaded
https://www.cpf.gov.sg/Assets/employers/Documents/conrates_guide_2014.pdf
Many do not realized bcoz of CPF contribution fr Eyers, Sporeans Real Wage shld incl that matching %tage that was 'forced' into growing our Retirement, property, approved investment, MediSave and in general savings with interests.
So, opting for cash upfront, usually eyers took adv of eyees' ignorance to let them hv their contribution unreported (which is illegal) and paid out as cash for the monthly wage. What they're denying themselves is the eyer's portion of %tage contribution. It's common practice for small companies & some SMEs.
Many countries tried to emulate our CPF System but many failed fr the will of implementation or execution. M'sia, China, HK & Australia had their superannuation but the latter country had been dependent on social welfare state & was not able to effectively implement. China had its shadow of the communist State Own Enterprise system where tho they've miserably low wages, Chinese hv benefitted fr real wage that includes state assigned homes, winter subsidy to keep themselves warm, etc. I learnt these when I was in Beijing under an MNC breaking into China mkt & discovered the young do not worry abt their elderly to portion their salary for parents' upkeep. In fact, the young move to cities & tend to find roommates/housemates to defray their cost of accommodation.
So long as our CPF Board/govt manages our monies well, we're really wealthier in real wages. I'll let the experts & economists handle how our monies are invested for returns in real interests compared to 'apparent' bank interests. I'm not the subj expert for the bigger, bigger pic. -
@ slmkhoo brought out a very interesting point.
We need to distinguish btwn Contract of Service & Contract for Services.
A Contract for Services is a formal, legally binding agreement before a business and a self-employment individual. Our Uber/Grab drivers & individual delivery persons falls under this category. Freelancers are considered self-employed service providers. Our tax office will find it challenging to track earnings, but this group will not be protected under labour law to benefit leave, medical, childcare leave, etc besides CPF.
An employment contract – known as a Contract of Service – which is between an employer and an individual who then becomes employed by the company. Most ppl are employed under this category incl those with civil service, Local & Foreign MNCs/conglomerates, SMEs, F&Bs, etc but wld exclude FW.
The difference is between service and services – self-employed people provide a finite amount of work while an employed person is in effect providing themselves permanently.
The division between the two also distinguishes between those who gain rights via employment and those that don’t. Self-employed people don’t typically gain employment rights/benefits, such as pension schemes, because they are expected to pay for these provisions themselves.
Reference :-
https://www.hrzone.com/hr-glossary/what-is-contract-for-services
MKS has a very good understanding of the different categories. Yes, a tutor is self-employed whilst one employed by a tuition Centre is an eyee. Hence, you'll find even Eton House & Pat's SchoolHouse employs Himan Resources personnel to ensure compliance with legislation with their staff-force ard Spore.
Indeed, one hv to be very clear which category yr services falls under. Bcoz of outsourcing services, at times even govt HR dept must be informed of outside eyee engagement. It can be challenged if a vendor assigns a person engaged under its company to provide e.g. IT, admin, etc personnel, the vendor is deemed an eyer & subj to all obligations as eyer under the E'pymt Law. The receiving govt dept is the Principal & will not be absolved, unless govt dept clearly requested for vendor declaration to hv adhered to all legislative compliance but was veiled fr truth.
In my work experience, there are eyers who knowing flaunt legislative obligation to cut costs, there are HR/Administrative oversight & there are those acting in ignorance. Training & audit is nec. Eyees alert is to authorities is one such informal 'audit'. -
MrsKiasu:
slmkhoo, for your case, do you need to establish yourself for at least a sole proprietor or just under normal individual capacity with contract stating ..vendor of services?
I think I had the choice (and I actually had a sole proprietorship at the time), but I just contracted as an individual. My contract was for freelance provision of a particular service. Similarly with private companies I have done work for as a freelancer. I declare myself as \"self-employed\" for tax purposes. And yes, it's not as good a deal as there is no cpf contribution from the \"employer\", paid leave, medical or any other benefits. Self-employed people have to make their own cpf and medisave contributions.