Computation of Company’s Quota Balance

Important Note:

1. A company/firm's Central Provident Fund (CPF) account is used by the Controller of Work Passes to determine its local workforce and foreign worker entitlement. The company/firm should ensure that CPF contributions under this account are made only to persons actively employed by the company/firm. 
   
   
2. The foreign worker entitlement (quota) is based on the size of the total workforce in the company/business. 'Total workforce' refers to the sum of the local workforce, S Pass holders and Work Permit holders that are subjected to the sectoral Dependency Ratio. 'Local workforce' refers to those full-time employees (Singapore citizens or permanent residents) who have worked for a full month, and are receiving prompt monthly salary/CPF contributions which are similar to the industry norm. Two part-time employees is considered as one local employee.
   
   For example, a company that employs two full-time local employees and two part-time employees will have a total local workforce of three persons. Employees who receive CPF contributions from multiple employers will not be considered in the calculation of the workforce.
   
   
3. A company/business' quota balance is calculated based on the size of its local workforce for the past three months (in the same CPF account). The past three months refer to the latest CPF contribution records, excluding the current and last month.
   
   For example, the quota for August 2006 is computed using the months of April, May and June 2006.
   
   
4. With effect from 1 January 2008, the S Pass quota has been raised from 15% to 25%. The entire S Pass quota will be taken from the companies' existing Work Permit quota under the same CPF account. This means that companies can employ more S Pass holders in lieu of Work Permit holders to improve the quality of their foreign workforce.
   
   
5. S Pass Quota is computed based on the company's Dependency Ratio.