TaxSavvySG

CPF for new PRs

My employee just became PR. CPF?

The situation

New PRs contribute at graduated rates in the first two years.

The law

  • Sec 7, Central Provident Fund Act 1953: Employers pay CPF for Singapore Citizen and PR employees monthly

What it means for you

Employer and employee can agree to full rates earlier. Use CPF tables. Graduated rates are lower for the first two years of PR status. Joint election for full rates needs both employer and employee consent.

What to do

  1. Note PR date.
  2. Apply graduated rates.
  3. Consider full rates.
  4. Update payroll.

We can do this for youMonthly CPF and SDL contributions: SGD 150

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