SG CPF Contributions for Foreign Employers

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2023-08-17

In Singapore, Central Provident Fund (CPF) contributions play a crucial role not only for citizens and permanent residents (PRs) but also for foreign employers and individuals. While CPF benefits are primarily reserved for citizens and PRs, foreign employers must be aware of their obligations when it comes to CPF contributions in various employment scenarios.

Hiring Foreign Workers (WP/SP) and CPF Contributions:

When Singaporean companies hire foreign workers on either a Work Permit (WP) or a S Pass (SP), they need to adhere to specific quotas for local employees and CPF contributions.

a) SP Quota
In the service industry, SP holders should not exceed 10% of the total workforce, while in other sectors, this percentage should not exceed 15%.

b) WP Quota
The WP quota varies by industry and is a more complex calculation. Refer to our detailed guide on Singapore WP Quotas and Levy by Industry for more information.

Employment Pass (EP) and Supporting Local Employment:

Employment Pass (EP) applicants are evaluated based on the COMPASS framework, including their support for local employment. The proportion of local Professionals, Managers, Executives, and Technicians (PMETs) in the company affects the EP application's score.

a) More than 50% local PMETs: 20 points
b) Between 20% and 50% local PMETs: 10 points
c) Less than 20% local PMETs: 0 points

Hiring local PMETs requires CPF contributions for them as well.

EntrePass Application and CPF Contributions:

Entrepreneurs applying for an EntrePass must meet certain criteria, including employing local PMETs and contributing to their CPF accounts. Successful EntrePass renewal hinges on meeting the criteria below:

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