Category Archives: Grants / CPF / Tax

Top 5 Myths: CPF Contributions

Top 5 Myths

Myth 01: You do not have to pay CPF Contributions to Part-Timers
The type of employment is not a criteria for CPF Contributions but rather it is the remuneration payable that decides the respective rates applicable.

Myth 02: Referral Fees attract CPF Contributions
Payment for employees for referring people to join the company will not attract CPF Contributions.

Myth 03: CPF Contributions are not applicable for employees during their Reservist
It is still applicable and contributions must still be made.

Myth 04: It is mandatory to pay CPF Contributions for employees working overseas 
CPF contributions will be deemed as voluntary for employees working overseas.

Myth 05: Retrenchment Benefits attract CPF Contributions
As per the law, it doesn’t attract CPF Contributions.

Advertisements

Criteria to Invest your CPF

If you are at least 18 years old, not an undischarged bankrupt, you are eligible to invest your CPF as long as your Ordinary Account has more than $20K or/and your Special Account has more than $40K. These amount are the “untouchable amount” which you will not be able to use for any investment purposes.

Reference can be found under my Page “Sources”:
CPF Investment

What is the definition of SME?

I believe all HR Personnel came across this question.

SME, as per the definition by Singapore (Ministry of Trade and Industry), refers to enterprises whose Annual Sales Turnover are not more than S$100 Million, or its employee size are not more than 200. This is actually a re-definition since 1st April 2011.

Reference can be found under my Page “Sources”:
Definition of SME