Actions Against Companies who Pay CPF Contributions to Phantom Local Workers

Ms Elysa Chen asked the Minister for Manpower what enforcement measures and penalties are in place to detect and take action against companies that make CPF contributions to locals who are not under their employment to artificially inflate their local workforce numbers in order to qualify for higher foreign worker quotas.

Dr Tan See Leng: The Ministry of Manpower (MOM) takes a serious view towards companies that inflate their foreign worker quotas by making Central Provident Fund contributions to locals who are not under their employment, otherwise known as "phantom workers". To detect such violations, we use data analytics, conduct inspections and investigate all complaints.

Errant employers may face a financial penalty of up to $20,000 for every work pass application made using the inflated quota and will be debarred from hiring foreign workers. Phantom workers who actively collude with such errant employers may also face enforcement actions for abetting the offence.