Written Answer by Minister for Manpower Mr Tan See Leng to PQ on CPF Contribution for Employment Pass and Entrepass Holders
NOTICE PAPER NO. 547 OF 2021 FOR THE SITTING ON 26 JULY 2021
QUESTION NO. 881 FOR WRITTEN ANSWER
MP: Mr Gan Thiam Poh
To ask the Minister for Manpower whether the Ministry will review the current policy and introduce the CPF contribution scheme to Employment Pass and EntrePass holders.
- This was addressed in MOM’s Ministerial Statement on 6 July 2021. Since 2003, all foreigners working in Singapore have not been allowed to contribute to CPF or receive CPF contributions from employers. The CPF system is designed to support Singapore Citizens and Permanent Residents in their retirement, housing, and healthcare needs. As foreign PMEs are not working in Singapore on a permanent basis, we are not responsible for their retirement adequacy or home ownership needs. CPF coverage and benefits are not extended to them. Foreign PMEs should make their own financial plans for retirement and can leverage on available financial products.
- The idea that this disadvantages Singaporeans is misconceived. We set a qualifying salary for Employment Pass (EP) holders in order to maintain a level playing field. The minimum qualifying salary is currently $4,500 for the youngest EP applicants. The qualifying salaries for older and more experienced EP candidates increase such that those in their 40s will need to earn around double the minimum qualifying salary for the youngest applicants. The setting of this qualifying salary takes into account CPF contributions as part of the cost to employers.