Which companies pay cpf portion to foreigners? - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > CPF (Central Provident Fund)

CPF (Central Provident Fund) All about OA, SA, MA and RA, and strategies to optimize your CPF




Which companies pay cpf portion to foreigners?

Reply
 
Thread Tools
  #1 (permalink)  
Old 22-01-2021, 02:41 PM
Junior Member
 
Join Date: Jan 2021
Posts: 2
Midlifemgr is on a distinguished road
Default Which companies pay cpf portion to foreigners?

When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?

Reply With Quote
  #2 (permalink)  
Old 22-01-2021, 04:14 PM
Unregistered
Guest
 
Posts: n/a
Question

Quote:
Originally Posted by Midlifemgr View Post
When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?
This is correct. Cause foreigner don't have cpf.
Which alot of Singaporean don't realise so they will claim that they only take home nett 4k after 20% employee cpf contribution while their foreigner take home 5850.

Alot of Singaporean are clueless.. But both are earning gross 5k exactly the same.
Only difference is Singapore gahmen don't let you use 37% if your gross and force you to save...

Reply With Quote
  #3 (permalink)  
Old 22-01-2021, 04:16 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
This is correct. Cause foreigner don't have cpf.
Which alot of Singaporean don't realise so they will claim that they only take home nett 4k after 20% employee cpf contribution while their foreigner take home 5850.

Alot of Singaporean are clueless.. But both are earning gross 5k exactly the same.
Only difference is Singapore gahmen don't let you use 37% if your gross and force you to save...
Yep. Another way of looking at it is both also earn 5850..
But only Singaporean see it that their salary is 4k

Reply With Quote
  #4 (permalink)  
Old 06-02-2021, 09:35 PM
Super Member
 
Join Date: Aug 2010
Posts: 335
lazyplane is on a distinguished road
Default

While it is true that the foreigner may have "higher" take home, pls also note that they will taxed at a very much higher income tax rate ie at least at min 15% or the singaporean tax rate *depending on the amount of income earned.

But if the company also pay for the tax expense, accommodation , kids education, then of course it is a very good deal for foreigner. This is true for most higher management position.

But to be fair, this is also the case for singaporeans working overseas that are doing management appointments.
Reply With Quote
  #5 (permalink)  
Old 06-02-2021, 10:34 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Midlifemgr View Post
When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?
Quite common, that's how many of them even as fresh grads can afford to rent condo units at 4-5k gross.
Reply With Quote
  #6 (permalink)  
Old 06-02-2021, 11:27 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by lazyplane View Post
While it is true that the foreigner may have "higher" take home, pls also note that they will taxed at a very much higher income tax rate ie at least at min 15% or the singaporean tax rate *depending on the amount of income earned.

But if the company also pay for the tax expense, accommodation , kids education, then of course it is a very good deal for foreigner. This is true for most higher management position.

But to be fair, this is also the case for singaporeans working overseas that are doing management appointments.
The minimum 15% tax rate applies only if the foreigner works in Singapore for less than 183 days. A "non-tax resident" is quite different from a non-PR.

Here's the definition of a tax resident from IRAS:

" Income tax rates depend on an individual's tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or

Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.

Otherwise, you will be treated as a non-resident of Singapore for tax purposes. "


Primary School English Grammar and Vocabulary Drills
Primary School English Grammar and Vocabulary Drills


SG Bus Timing App
SG Bus Timing App - the best bus app - available on iOS and Android


Bursa Stocks Android App - check share prices
Bursa Stocks [Android] App - check latest share prices on the go


SGX Stocks Android App - check share prices
SGX Stocks [Android] App - check latest share prices on the go


SGX Stocks for iPad - check latest Singapore share prices
SGX Stocks [iPad] app
| SGX Stocks [iPhone] app
Reply With Quote

  #7 (permalink)  
Old 07-02-2021, 04:51 PM
Super Member
 
Join Date: Aug 2010
Posts: 335
lazyplane is on a distinguished road
Default

Quote:
Originally Posted by Unregistered View Post
The minimum 15% tax rate applies only if the foreigner works in Singapore for less than 183 days. A "non-tax resident" is quite different from a non-PR.

Here's the definition of a tax resident from IRAS:

" Income tax rates depend on an individual's tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or

Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.

Otherwise, you will be treated as a non-resident of Singapore for tax purposes. "

Ah - yes, i agree. So the scenario being referred here is
Non singaporean but getting singaporean income tax rates AND getting singapore full employer CPF and ee CPF contribution.
And the concept that the take home pay by the non singaporean is "higher"

Got it and that part - i agree. There should be more dis-incentive for non resident singaporean in terms of income tax..but i guess there are also treaties to take into account etc etc.


if anyone really wants to compare all the benefits , maybe refer to the government sponsored webpage :

https://www.guidemesingapore.com/bus...-and-drawbacks
Reply With Quote
  #8 (permalink)  
Old 24-03-2021, 01:15 AM
Unregistered
Guest
 
Posts: n/a
Default

Thanks for the information, I needed that.
Reply With Quote
  #9 (permalink)  
Old 30-11-2021, 07:44 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
Thanks for the information, I needed that.
Ask your company
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Should foreigners pay more tax? hashbrowntime Income and Jobs 8 31-08-2020 12:08 AM
Can foreigners buy property in Vietnam newsgprop Marketplace and Find Work 1 17-07-2017 10:51 AM
Can foreigners buy property in Vietnam newsgprop General Discussions 1 17-07-2017 10:51 AM
Can foreigners buy property in Vietnam newsgprop Market Talk 1 17-07-2017 10:50 AM
Foreigners earn higher as RA in NTU and NUS 1000stop Income and Jobs 0 24-01-2017 01:57 PM

» 30 Recent Threads
Career as Teacher ( 1 2 3... Last Page)
10,851 Replies, 6,670,821 Views
Why Is Having a Google Virtual...
1 Replies, 6,764 Views
How is life as a doctor in... ( 1 2 3... Last Page)
7,240 Replies, 3,399,773 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,805 Replies, 1,045,389 Views
JP Morgan ( 1 2 3... Last Page)
199 Replies, 173,413 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
15,319 Replies, 4,984,846 Views
GovTech ( 1 2 3... Last Page)
5,163 Replies, 2,164,770 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
1,050 Replies, 440,778 Views
Mining Industry ( 1 2 3... Last Page)
80 Replies, 74,514 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
5,340 Replies, 4,772,541 Views
Civil Service Current Estimated... ( 1 2 3... Last Page)
171 Replies, 309,560 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
680 Replies, 388,769 Views
Compare civil service salary ( 1 2 3... Last Page)
16,343 Replies, 12,458,031 Views
Lawyer Salary ( 1 2 3... Last Page)
21,015 Replies, 10,331,194 Views
ST Electronics ( 1 2 3... Last Page)
3,768 Replies, 1,545,289 Views
UOB Management Associate Program ( 1 2 3... Last Page)
1,457 Replies, 784,776 Views
Is getting a PMP worth it ?
4 Replies, 7,171 Views
Visa Graduate Development Program ( 1 2 3... Last Page)
207 Replies, 134,722 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
6,922 Replies, 2,903,563 Views
Nparks ( 1 2 3... Last Page)
39 Replies, 34,435 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,828 Replies, 4,657,490 Views
ITE Polytechnic Scheme ( 1 2 3... Last Page)
309 Replies, 369,376 Views
Constituency Manager (People... ( 1 2 3... Last Page)
989 Replies, 814,027 Views
Julius Baer Graduate Program 2023 ( 1 2 3)
21 Replies, 14,828 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,385 Replies, 2,324,966 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
752 Replies, 358,782 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,464 Replies, 1,375,751 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,260 Replies, 613,893 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,123 Replies, 3,739,058 Views
MX12 reappointed at MX11
8 Replies, 851 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 03:38 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2