Does Your Part Time Job Come With CPF Contributions?

A friend of mine is looking for a part-time job to supplement his income as a freelancer, in preparation for his upcoming marriage plans, and so I have been helping him to keep a lookout for potential job opportunities. One recent offer did not come with CPF contributions, so he declined. However, my (nagging) suspicion is that most people do not know what attracts CPF contributions, and what doesn’t, especially when it comes to part time jobs for students.

If you don’t already know, CPF is payable for all part-time / casual employees. However, CPF contributions are not payable for the following groups in the second section:

CPF Contributions for Students

[ This information is from the CPF Board’s website ]

If you’re an employer, do note that CPF should be paid for the part time jobs Singapore citizens and PRs are employed to do. Also, CPF contributions are a must for payments made to your employees for overtime pay, commissions, angpows given during festive seasons (YES!), payments for good service, etc. Find the entire list here. You might be surprised at the number of payments that attract CPF contributions!

As a student, should you forego CPF contributions for what seems like (immediate) higher take-home pay? I’d say ‘no’, because your CPF monies will come in really useful later on in life, especially when you want to purchase a HDB flat. And besides, why let your employer get away with not paying you the CPF monies which are rightfully yours to claim? However, I do also know that there are special instances, such as when students have to work to supplement the family’s income, and that every dollar counts and is used for putting food on the table. In that case, if this immediate (higher) income will do more for your family now, then do what you must.

Right now, I have another pal who is looking for a part-timer (preferably a student) to help out at roadshow events. If you, or someone you know, will be interested in working part-time in the Western part of Singapore, drop me an email for more details. 🙂