Oral Answer by Minister for Manpower Dr Tan See Leng to PQ on CPF contributions for workers on hybrid work arrangements

NOTICE PAPER NO. 977 OF 2022 FOR THE SITTING ON OR AFTER 16 FEBRUARY 2022
QUESTION NO. 2510 FOR ORAL ANSWER

MP: Mr Yip Hon Weng

To ask the Minister for Manpower (a) whether the rise of hybrid working arrangements has adversely impacted CPF contributions; (b) how will differential benefits and compensation for traditional salaried employees and remote hybrid employees affect the computation of CPF obligations; and (c) what is being done to incentivise employees working remotely for overseas employers to make their share of employee’s CPF contributions for their retirement and healthcare needs.

Answer:

1. CPF contributions have risen over the past few years even during the COVID-19 pandemic when there was a rise in hybrid working arrangements.
2. The computation of CPF obligations does not differ between traditional salaried employees and remote hybrid employees. All employers are required to make mandatory CPF contributions, both employer and employee portion, based on the wages a Singaporean or Singapore Permanent Resident earns while working in Singapore. This includes overseas employers who have local employees working for them remotely in Singapore.
3. We advise local employees of such firms to check that their employment contract covers the rights and obligations of both themselves and their employers, including provisions for the contribution of CPF by their employers. Further information can be found in the guide on working for overseas-based employers published on MOM’s website.
4. In addition, like other local employees, employees working remotely in Singapore for overseas employers can still make voluntary CPF contributions up to $37,740 per year less any mandatory contributions received, to help them enjoy CPF interest rates of up to 6% per annum and accumulate more for their retirement and healthcare needs.