“They Call It an ‘Allowance’, But It’s Full-Time Work” – Young Singaporean Questions Freelance Contract With No CPF

A 27-year-old local fresh grad took to r/SingaporeRaw to seek advice after receiving a job offer that left him more confused than excited. The contract was for a full-time position – fixed hours, annual and sick leave – but oddly labelled him as a “freelancer,” with no CPF contributions and his salary referred to as an “allowance.”

The redditor, u/Huge_Medium549, hasn’t signed the contract yet and is now wondering: how should he negotiate CPF, and is this even legal?

Freelancer on Paper, Full-Time in Practice

According to the contract, there would be “no employer-employee relationship,” yet the role has fixed working hours and entitles him to leave – conditions typical of a permanent job. In an email exchange, the hiring manager clarified that the full salary would be paid out as take-home, with no CPF.

This raised immediate red flags among commenters.

“They are using the word ‘freelance’ to avoid any obligations... whilst at the same time ‘full time’ to lock your hours and squeeze you.” – u/Familiar_Guava_2860

“Imagine what they would do to avoid payment of salary?” – u/mecha_power

Many agreed that this was a classic case of a company trying to dodge employer responsibilities while still squeezing full-time output out of a worker – especially one desperate for a first job.

Exploitation or Opportunity?

While some commenters advised the OP to walk away entirely:

“Forget about the job. You can’t even go to MOM if they don’t pay you – it’ll be seen as a B2B dispute.” – u/One_Ad964

Others suggested a more tactical approach, especially given the tough job market:

“Accept first la... just run at any moment you feel exploited.” – u/DaftSinkies

A few even saw a potential silver lining. One user, u/Arnator, shared how they used a similar contract job to negotiate a much higher base salary (in exchange for no CPF), and later leveraged it into a better permanent job elsewhere. But that came with experience and strategy.

“Because no CPF, I negotiated for additional pay... I kept that pay raise and got CPF back in the next job.”

Still, the key warning from many was to make sure the pay compensates for the lack of CPF. CPF isn’t just retirement money – it affects housing, medical, and future financial security.

So What Can Be Done?

Some commenters advised reporting the issue to MOM, CPF, or IRAS. Others were more skeptical, saying these authorities might brush it off as a “business decision.”

“MOM will tell you it's a business decision. Not happy, don't sign.” – u/slashrshot

That said, one commenter suggested reframing the situation when reaching out:

“Frame your query as: ‘Am I considered an employee with a full-time contract position?’ to MOM, CPF, and IRAS.” – u/Lost-Hope-248

If nothing works, TAFEP or even your MP might be a last resort.

Bottom Line

It’s clear this isn’t just a weird contract – it’s a bigger issue about what companies can get away with when workers are desperate. If you’re fresh out of school and have bills to pay, these kinds of offers feel like the only option. But that doesn’t make them right.

If it smells like a full-time job, acts like one, and demands your time like one – it should come with full-time benefits. Otherwise, the “freelancer” label is just another way to cut corners at your expense.