Do you need to contribute Central Provident Fund (CPF)?

SCENARIO

An Employer who employs Singaporeans and Singapore Permanent Residents (SPR) has to make Central Provident Fund (CPF) contributions if these employees are working in Singapore under a Contract of Service where they are employed under a permanent, part-time or casual basis. Is there any group of employees who are exempted from CPF contributions?

ANSWER

The following groups of employees are exempted from CPF contributions:

Employees who are Singapore Citizens/Singapore Permanent Residents (SPR) earning $50 and below in a month.
Students of Government Schools, excluding tertiary institutions, working under the scheduled school holidays.
‘N’ & ‘O’ level Government school students working during the scheduled school holidays.
‘A’ level students working during the scheduled school holidays before their ‘A’ level examinations.
Students working during vacation or term, under training programme approved by the following institutions:
1. National University of Singapore
2. Nanyang Technological University
3. Singapore Management University
4. Singapore University of Technology and Design
5. Singapore Institute of Technology
6. Nanyang Polytechnic
7. Ngee Ann Polytechnic
8. Singapore Polytechnic
9. Temasek Polytechnic
10. Republic Polytechnic
11. Institute of Technical Education.
Students studying overseas, who return to Singapore to work during vacation or term, under a training programme approved by their overseas tertiary education institution, and the training period does not exceed 6 months.
Foreigners on Employment Pass, S Pass, Miscellaneous Work Pass or Work Permit.
Partners, Sole-proprietors or Self-employed persons (only required to contribute to their Medisave which is computed based on their annual net trade income earned).
Employees working overseas.