The CPF contribution is a compulsory savings scheme for Singapore citizens and permanent residents who are members of the working population to meet their retirement, health insurance and home purchase needs. The CPF is administered by the Central Provident Fund Board (CPFB) under the Ministry of Manpower.
>> Who is required to pay CPF?
For employers, regardless of whether the employee is a regular or part-time employee of the company, as long as he/she is a Singapore Citizen or Permanent Resident and earns more than $50 per month with the company, he/she is required to contribute to the CPF at the prescribed rate.
However, the following categories of employees are not required to contribute to the CPF:
1. employees working overseas
2. seafarers who are permanent residents of Singapore
3. seafarers who are Singapore citizens and whose contracts of service or other agreements are signed outside Singapore.
>> How is an “employer” defined?
An employer may be:
- Any person, company, association or body of persons, whether incorporated or not, by whom the employee is employed
- The owner of any vessel on which the employee is employed; or
- Any manager, agent or person responsible for the payment of wages to the employee on behalf of the employer.
>> How is an “employee” defined?
An employee is defined as:
- Any Singapore citizen or Singapore permanent resident who is employed in Singapore under a contract of service with an employer otherwise than as a master, seaman or apprentice on any ship; or
- A Singapore citizen employed in Singapore as a master, seaman or apprentice on any vessel under a contract of service or other agreement entered into in Singapore where the owner of the vessel is not exempt from the provisions of the Provident Fund Act.
Your employees may include：
- company directors
- employees on concurrent employment
- domestic workers (family workers)
- national servicemen undergoing in-battalion training
- part-time employees
- temporary workers
