Review of Current Policy and Introduction of CPF Contribution Scheme to Employment Pass and EntrePass Holders

48 Mr Gan Thiam Poh asked the Minister for Manpower whether the Ministry will review the current policy and introduce the CPF contribution scheme to Employment Pass and EntrePass holders.

Dr Tan See Leng: 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.