CPF contribution rates
Effective 1 July 2007, the Government will raise the employer's CPF contribution rate by 1.5 percentage points.
Current employer CPF contributions increases from 13% to the new rate of 14.5%.
Depending on the age and income level of your employees, you will see the following changes:
Income Level of Employee Age 35 years or less Age more than 35 years
$1,500 or less " Contribute 1.5% more Employer CPF "
Contribute less Employer CPF, depending on age and income of the employee
More than $1,500 " Contribute 1.5% more Employer CPF
Employers who employ or hire workers above 35 earning between $500 and $1,000 will save about 3% on their wage bill.
Work Passes
Foreigners who wish to work inSingapore should apply for a work pass. This section provides an overview of work passes and other
related passes, which are administered and issued by MOM.
P and Q Pass (Employment Pass)
For foreign professionals, manager, executives and specialists.
Applicants will be assessed based on their salary, qualifications, work experience and nature of job, and other factors. EP applicants
must be minimally paid a fixed monthly salary of $2,500. EP holders qualify for dependant privileges.
Personalised Employment Pass (PEP): for selected EP holders and foreign students from institutions of higher learning in Singapore.
All applicants must earn a minimum fixed salary of $30,000 in the preceding year to apply. In addition, EP holders must have worked at
least 2 years on a P Pass or 5 years on a Q1 Pass. Foreign students from institutions of higher learning in Singapore need at least 2
years work experience on an EP. The PEP is valid for 5 years (non-renewable).
S Pass
For middle level skilled manpower e.g. technicians.
S Pass applicants are assessed using a points system that takes into consideration their salary, qualifications, skills, work experience
and job type. S Pass applicants must be minimally paid a fixed monthly salary of $1,800. There is a 10% quota for S Pass holders at
the company level, and a levy of $50 applies for each S Pass holder. S Pass holders paid a fixed monthly salary of more than $2,500
qualify for dependant privileges.
R Pass (Work Permit)
For semi-skilled and unskilled foreign workers that do not qualify for S Passes.
Source country restrictions apply for all industry sectors. For instance, Services sector companies are allowed to recruit R Pass
workers from Malaysia, Hong Kong, Macau, South Korea and Taiwan only. Companies employing R Pass workers are also subjected to
the prevailing sectoral controls such as dependency ratio and levy. R Pass holders are not eligible for dependant privileges. Work
Permits are also issued to foreign domestic workers.
Training Visit Pass (TVP)
For foreigners to undergo practical training attachment for jobs of professional, managerial, executive or specialist nature in Singapore.
To qualify, applicants must have a fixed monthly salary of more than $2,500 or hold acceptable tertiary/ professional qualifications. For
undergraduates, the training attachment must be a compulsory component of their curriculum from an acceptable institution. Companies
may also bring in employees from their foreign offices or subsidiaries to Singapore for training purposes. Applicants may be considered
for Training Work Permit (TWP) if they do not qualify for a TVP. TWP is subjected to quota and/or levy.
