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My Singapore Permanent Resident employee obtained his Singapore Citizenship in the middle of the month. When will the contribution rates for a Singapore Citizen apply?

Updated by CPF
The CPF contribution rates for Singapore Permanent Resident will apply on your employee’s wages until your employee obtains a Singapore Citizenship. Once your employee has obtained a Singapore Citizenship, the contribution rates for Singapore Citizen will apply from the day he becomes a Singapore Citizen.
 
For Ordinary Wages (OW), you will need to pro-rate your employee’s OW and apply the appropriate rates to determine the CPF contributions. You can write to us for assistance on the computation if the Ordinary Wages for the month exceeds the Ordinary Wage ceiling or if the pro-rated wages are below $750.
 
For Additional Wages (AW), you will need to apply the applicable contribution rate depending on when the AW is payable to your employee.
 
Example
Assuming your employee is in the second year of Singapore Permanent Resident (SPR) status and becomes a Singapore Citizen on 15 June 2020.
 
For OW
  • The second year SPR rate should be applied on the pro-rated wages for the period 1 June to 14 June 2020.
  • The Singapore Citizen rate should be applied on the pro-rated wages for the period of 15 June to 30 June 2020.
 
For AW
  • The second year SPR rate should be applied on the AW if it is payable between 1 June and 14 June 2020.
  • The Singapore Citizen rate should be applied on the AW if it is payable between 15 June and 30 June 2020.

This information is sourced from CPF.

Topics:

Employer - Employer ObligationsHow much CPF contributions to pay

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