Under the CPF Act, an employee is defined as:
- A person who is employed in Singapore under a Contract of Service (COS); or
- A Singapore Citizen who is employed under a contract of service or other agreement entered into in Singapore as a master, seaman, or apprentice in any vessel.
If you’re a Singapore Citizen or Permanent Resident employee earning total wages of more than $50 per month, your employer must contribute CPF for you. An employee can be employed on full-time, part-time, temporary, contract, or casual basis.
Employees exempted from CPF contributions
Some employees are exempted from CPF contributions. They include students who fulfil exemption criteria, foreigners, domestic employees, employees of the United Nations, and seamen who fulfil exemption criteria.
What payments attract CPF contributions?
Wages attract CPF contributions. Some examples of wages include:
- Basic wage
- Overtime pay
- Cash incentive
Some payments are not wages. Examples include termination benefit, reimbursement, and benefit in kind.
The share of CPF contributions
The employer is required to pay the total CPF contributions (comprising employer and employee’s shares) for each month. The employer is entitled to recover the employee’s share of CPF contributions when paying the wages for the month.
However, if you earn above $50 but not more than $500 per month, there’s no employee’s share of CPF contributions. Your employer is still required to pay the employer’s share of CPF contributions for you.