Things you should know about CPF for PR holders (part 2)

I. WHAT IS CPF

CPF contributions are payable once a foreign employee obtains SPR status. To help the
employee adjust to the lower take-home pay, both the employer and employee will contribute CPF at graduated rates for the first two years.

The first year rate is payable on the date of your employee’s conversion to a SPR. The second and third year rates are payable from the month following the anniversary of the employee’s conversion to a SPR.

For example, if your employee became a SPR on 23 January 2009, the first year rate would apply from 23 January 2009. The second and third year rates will apply from 1 February 2010 and 1 February 2011 respectively.

Foreigners, who have obtained their SPR status, should only maintain one CPF account.
Employers should inform such employees to merge their previous CPF account (if any)
with their new CPF account.

CPF contributions for SPRs into CPF accounts with the prefix SA/SB/SD/SF/TC/TF will be rejected. Merging of CPF accounts can be done by submitting clear photocopies of the documents listed below:

• Singapore Identity Card

• Passport

• CPF Membership Card

• Entry/Re-entry permit

Below is the total CPF contribution rate

II. TYPES OF SPR CONTRIBUTIONS

SPR employees and their employers have the option to jointly apply to CPF Board to contribute at other prescribed rates during the employee’s first two years of obtaining the SPR status.

A summary of the options available is as follow:



Option (1) applies once your employee obtains his SPR status. For options (2) and (3), the employer and employee must jointly apply to the Board using the prescribed form CNR/PR/94A. Once the application is approved, it is irrevocable. These rates will cease to apply upon a change of employment within the first two years, i.e. the rates will go back to the graduated rates.

CPF contribution rates for SPR first year and second year:



For further infos and want to calculate on how much do you need to contribute to CPF, simply click HERE.