Why can’t the HR director just go shopping on Orchard Road?
There are two main reasons. CPF contributions have been reduced over recent years putting more pressure on companies to step in (see Legislative Update ). This might cool off following the New Year’s speech by the Prime Minister hinting at a contribution raise in 2007. The other reason is that foreigners are not covered by the CPF, so retirement coverage for these individuals is a big issue for many companies. How can the finance director go play golf in Sentosa? Well, she can. She probably has a good handicap actually! Supplementary retirement plans are very rare and hence the payment of CPF contributions is normally the extent of the company’s responsibility. Back to top Thailand: Land of smiles From 1 April 2002, a company employing more than one person is subject to the regulations of the Social Security Act and must contribute to the Social Security Fund. There is no mandatory retirement age in Thailand, although most companies in the private sector consider normal retirement age
