For Singaporean Citizens and Permanent Residents (PRs), the CPF forms the foundation stone for social security in housing, retirement and medical needs in their old age. Thus, it is also right that this responsibility is divided between 1) individuals, 2) the companies that operate and prosper in Singapore and 3) the Singapore government.<\/p>\n\n\n\n
For companies in Singapore, it is a given that you have to contribute a portion of your Singapore Citizen and PR employees\u2019 salaries to their CPF accounts each month, as well as annual bonus. It is the employer\u2019s responsibility to make both the employee and employer CPF contributions to the employees\u2019 CPF accounts.<\/p>\n\n\n\n
While doing so, you may also find that employees\u2019 CPF contributions typically differ based on their age, and that you also have to fork out a Skills Development Levy (SDL)<\/a> and a nominal sum towards Self-Help Groups (SHGs)<\/a>.<\/p>\n\n\n\n Read Also: <\/em><\/strong>CDAC\/ECF\/MBMF\/SINDA: How Much Employers Are Contributing To Self-Help Groups For Employees In Singapore<\/em><\/strong><\/a><\/p>\n\n\n\n In general, employers here do not have to make any CPF contributions for their Singapore Citizen or PR employees stationed or posted to work overseas.<\/p>\n\n\n\n The main reason employers don\u2019t have to pay CPF for their Singapore Citizen and PR employees based overseas is likely because such employees may be entitled to other pension system contributions, if he or she qualifies for it. This makes sense, so there will not be a situation where employers are compelled to pay into two pension systems.<\/p>\n\n\n\n In the scenario where employers are relocating their Singapore Citizen and PR employees overseas, they do not need to make any CPF contributions for any mobility payments for such employees to transit overseas. This may be a small but relevant point as CPF contributions for mobility payments would have to be made for the same employees if they were to relocate back to Singapore for work.<\/p>\n\n\n\n Read Also: <\/em><\/strong>Guide To Government Grants And Resources For Singapore Companies To Expand Their Business To Overseas Markets<\/em><\/strong><\/a><\/p>\n\n\n\n There also exist scenarios where employers have to pay CPF for their Singapore Citizen and PR employees even if they are working or accomplished work outside of Singapore.<\/p>\n\n\n\n In the event employers are sending their Singapore Citizen and PR employees for overseas training, and even if they are not required to report to work in Singapore for the duration of their overseas training, employers are still obligated to make CPF contributions.<\/p>\n\n\n\n In the globalised world we live in, overseas work stints may have been common. The CPF Board also highlights that CPF contributions are payable for employees\u2019 during their short-term overseas assignments. This includes overseas business trips, meeting overseas clients, and attending overseas seminars, conferences, and training.<\/p>\n\n\n\n In general, it depends on the posting of the Singapore Citizen and PR employee. If they are posted to Singapore, but have work done or achieved bonuses for their work done overseas, they continue to receive their CPF contributions. Similarly, if a Singapore Citizen and PR employee posted overseas, has work done or achieved bonuses in Singapore, their employers are not required to make CPF contributions.<\/p>\n\n\n\n CPF is also payable for a seaman or any person who is part of a crew of a vessel<\/a> if they are a Singapore Citizen and entered into an agreement in Singapore. However, CPF contributions are not payable for a seaman who is a Singapore PR. Singapore Citizen seamen are also exempted if they are employed in a Swedish ship, Norwegian ship or Danish ship, under conditions applicable to the respective countries\u2019 seamen. <\/p>\n\n\n\n Regardless of where your employee comes from, ensuring your people are building towards an adequate social security, especially for their retirement and medical needs, in their old age can differentiate companies as an employer of choice or even comprise part of your company\u2019s ESG blueprint.<\/p>\n\n\n\n Towards this end, companies can make voluntary contributions for their Singapore Citizen and PR employees. Employers can apply for a separate CPF Submission Number (CSN) to make such Voluntary Contributions (VC)<\/a>.<\/p>\n\n\n\n Read Also: <\/em><\/strong>Does It Make Financial Sense For Companies To Make Additional MediSave Contributions For Employees?<\/em><\/strong><\/a><\/p>\n\n\n\n Apart from staffing your overseas office with certain Singapore employees, businesses here may also require other support to operate a successful overseas venture.<\/p>\n\n\n\n For Singapore firms that are expanding overseas or have already expanded overseas, you can tap on government grants such as the Market Readiness Assistance (MRA) grant<\/a> for up to 50% of eligible costs per overseas market, capped at $100,000. In addition, the Singapore government has also negotiated extensive Free Trade Agreements (FTA) to incentivise trade and investments in other countries\/regions.<\/p>\n\n\n\n Read Also: <\/em><\/strong>Guide To Understanding Free Trade Agreements (FTAs) \u2013 And How It Helps Companies And Businesses<\/em><\/strong><\/a><\/p>\n\n\n\nDo Singapore Employers Need To Pay CPF For Singapore Employees Based Overseas?<\/h3>\n\n\n\n
Scenarios Where Employers Have To Contribute CPF For Your Singapore Employees Working Overseas<\/h3>\n\n\n\n
Making Voluntary Contributions Into Singapore Employees CPF Accounts<\/h3>\n\n\n\n
Singapore Firms Expanding Overseas<\/strong><\/h3>\n\n\n\n