Companies with operations in Singapore are required by law to make monthly contributions into the *employees' Central Provident Fund (CPF), the national social security savings plan that provides working Singaporeans (including those holding Permanent Resident status in Singapore) with a sense of security and confidence in their old age. The CPF aims to provide a retirement income to meet one's basic needs such as a roof over one's head upon retirement and savings for future medical expenses. This is unlike other jurisdictions where the employee's retirement funds are met by the organisation's pension funds.
Every month, PowerSeraya makes contributions to its employee's CPF. The CPF contribution rates, which are percentages of their current wages, vary according to age starting from 5% to 14.5% as stipulated by the CPF Board. In FY08/09, the company's contributions to its employees' CPF, which covers 98.3% of the workforce, totalled S$4.7million.
*Employee is any person (excluding foreigners with no Permanent Resident status in Singapore) who is employed in Singapore and any Singaporean seaman who is employed by an employer under a contract of service or other agreement entered into in Singapore.

