24 Sep 2025
SOURCE: CPF Board
A phantom worker is declared as an employee of a company, but does not actually do any work for said employer. These phantom workers can be anyone, though these employers tend to target seniors, as they see them as more vulnerable. Phantom workers are essentially employed in name and receive only CPF contributions.
But why would an employer pay someone CPF contributions to do nothing? The reasons can vary:
By using local phantom workers, an employer increases their qualifying foreign worker quota without having to actually employ local workers and pay them the full salary. The employer typically only pays the phantom worker their CPF contributions, which can go up to 37% of the full salary depending on CPF contribution rates. This allows the employer to circumvent the quota system put in place by the Ministry of Manpower (MOM), thereby depriving local workers of these job opportunities by hiring more foreign employees.
Overall, this practice allows employers to cut costs. However, it is both illegal and unethical on the employer’s part, and is punishable by law.
Since CPF contributions are made to phantom workers, these contributions can be used by the employer to file claims for expenses in their tax declarations. This allows employers to falsely declare a lower yearly taxable income.
In addition, employers who hire phantom workers can also benefit from Government schemes that offer tax benefits or payouts to incentivise training and hiring of local workers. This is an abuse of government funds, as these employers did not actually meet the qualifying criteria but are falsely inflating their employee count to appear otherwise.
Employers require your personal details such as your Singpass or CPF account details to declare you as a legitimate local worker. Thus, they may ask you for those details by promising some CPF contributions as a reward. Should you provide the information, they’re able to hire you as a phantom worker.
It’s possible that the person divulging their information may not understand the implications of such an agreement, and didn’t intend for their personal details to be misused in this manner. It’s also possible for companies to obtain your personal details via other illicit means without your knowledge or involvement altogether.
Hiring local phantom workers in order to fraudulently hire more foreign workers violates the Employment of Foreign Manpower Act 1990 (EFMA), which requires all employers and work pass applicants to make accurate and truthful declarations to the Controller of Work Passes.
Employers found guilty of this may have their work pass privileges suspended, and the work pass applicant may be barred from working in Singapore in the future. Anyone who colludes with an employer by providing their personal details in exchange for fraudulent CPF contributions to meet the requirements of Work Permit applications may also be prosecuted. Even if you have provided your CPF or Singpass details without knowing how this information would be used, you may still be investigated for aiding others in making false declarations of employment, and may be prosecuted.
The quickest and simplest method is to not accept CPF contributions from unknown or illegitimate sources. Under the transaction history section of your CPF dashboard, you are able to track your CPF contributions, and if you spot a CPF contribution from an unknown source, you should investigate immediately.
If it came from an employer you’re not employed under, it could be a sign that the employer has registered you as a phantom worker. If you are certain that you don’t work for the employer, seek clarification with the employer directly. If the employer remains unresponsive or cannot be contacted, you should report it to the Ministry of Manpower.
As a general precaution, you can make it a point to never give out your personal information without first verifying the requestor’s authenticity, especially if they offer you CPF contributions in exchange.
By being aware of the risks, you can protect yourself from being fraudulently “hired” as a phantom worker, and do your part to keep the local job market fair.
The information provided in this article is accurate as of the date of publication.
