Really?
I will take a comparison of a Singaporean and a foreigner in the Service Sector, both earning $1800 per month. (Foreigner earning at least $1800 entitles them a S Pass in the Service Industry which cost an employer $110 per month in Foreign Worker's Levy.)
- The Singaporean - Company will have to contribute Employer's CPF of $270 per month.
- The Foreigner - Company will pay S Pass holder's Foreign Worker's Levy of $110 per month (Assume he/she is in Tier 1)
- The Foreigner takes home the full $1800 while the Singaporean take home $1440 after deducting Employee's CPF.
Source: MOM Website
(Source: CPF Calculator. Assume Singaporean is < style="font-weight: bold; color: rgb(255, 0, 0);">save $160 per month per worker. Of course, assume that there are less than 20% S Pass holders in the Company.
How much low wage a Singaporean must take to be the same level of "expenses" when compared with a Foreign Worker?
- Using the CPF Calculator by the CPF board, the amount will be $1240 per month for the Employer's CPF to be in the same level with the Foreign Worker's Levy of $170.
- A Company can employed a Foreigner with a wage of $1799 (Below $1800 is a Work Permit Holder) while paying $170 Foreign Worker's Levy.
- Comparing with a Singaporean, an employer will definitely NOT hire a Singaporean because paying him a wage lower than $1799 will requires the Company to pay $271 to worker's CPF. A Company will have a wide range of Wage from $1240 to $1799 to play around by employing a Foreigner. Company will save $101 by NOT EMPLOYING a Singaporean.
(Source: CPF Calculator. Assume Singaporean is < 35 years old)
The new Foreign Worker's levies will be increased again in few months time, but how about the past 5 years or more when PAP was in control. I asked myself, were they doing their best to help ordinary Singaporeans? Will I allow that if Opposition Parties contest in my area?
The PAP since 2006 or even earlier had did a terrible thing in regards to Immigration Policies to allow un-checked inflow of people from China, India, Myanmar and even Africa to compete with Singaporeans on normal jobs by issuing easy PR status to these people.
How much the Foreign Worker's Levies had disadvantaged Singaporeans for the past year since the 2006 election?
So does PAP really cares about the ordinary Singaporean Workers?
I doubt so..............
so dumb lol
ReplyDeletewhere do u think cpf go to?
cpf is still your money dude..
ReplyDeleteI've noticed a lot of intelligent comments posted at this site, and I'm not so sure about this one, mostly because there's this weird bit at the end about foreign workers being attracted to the idea of 'easy PR status', which, if acquired, would actually make them just as expensive to hire as Singaporeans.
ReplyDeleteTo clarify: Employers don't need to pay any foreign worker levy when hiring PRs but they do need to pay CPF, as do the PRs themselves. PRs pay the same tax as citizens and don't expect to enjoy the same housing or education subsidies as citizens. In other words, apart from possibly appearing committed to perhaps remain in Singapore for rather longer than your average, run-of-the-mill foreign worker, the minute a foreigner accepts PR status, he or she causes him or herself to appear less attractive rather than more attractive to potential employers than previously.
so what is really the plan here???.. stop all FTs? or as usual, complain and point out like OPP parties and ride on the emotional wave of people while there is no concrete plan of really doing anything about it ? Decrease FTs?? prepare for consequences ? like taxi lesser pple? SMRT less profits? Kopitiam less profits? etc etc ?
ReplyDeleteCPF may still be our "own money", but it is tied and cannot even be called upon on rainy days or just for some simple but meaningful indulgences in life like a family vacation or a course of study in a subject of interest(which may be in a non-CPF Education Scheme approved institution, i.e. private). The foreigners get to control the full amount due to them, which is more practical in a country where costs are rising for everything and cash at hand is more important than untouchable numbers.
ReplyDeleteMoreover, how much you take home or save in CPF is none of the employers' concern - they only care about how much they need to pay you vs the foreigner, in which case the foreigner already has the upper hand with much lower overall costs for the employer.
So why dont the singaporean just give up on his CPF? cheaper for everyone
ReplyDelete