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| THE BENEFITS OF GOING ‘E’ FOR ALL EMPLOYERS |
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E-Submission Saves Processing Fees
From January 2005, employers with 11 or more employees who submit their CPF contribution details using the hardcopy Payment Advice have to pay a processing fee of $7 per employee each month. This processing fee may be extended to employers with 1 to 10 employees in time to come. So sign up for electronic submission today and save on the processing fees! For more information, email us at Er-Con@cpf.gov.sg.
Easy Online Registration With SingPass
Starting your own business and hiring employees? You can now register online as a CPF employer. Simply log on to www.business.gov.sg with your SingPass and get your application processed within a day. You can also apply for different business licenses, check out the various incentive schemes such as the Business CARE programme offering affordable computer and Internet packages and access comprehensive business information at www.business.gov.sg.
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| REVISION OF SALARY CEILING FOR THE SKILLS DEVELOPMENT LEVY (SDL) |
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From 1 September 2005, the salary ceiling for SDL contributions will be raised from $1,800 to $2,000. The levy rate remains at 1% and the minimum amount payable is $2 for remuneration less than $200. The SDL is payable for all employees whose gross remuneration is less than or equal to the salary ceiling.
Employers should pay the SDL by the 14th day of the following month to the Central Provident Fund (CPF) Board, which is the Singapore Workforce Development Agency’s (WDA) authorised collection agency. For more information, please visit the WDA website at www.wda.gov.sg.
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| ASK OUR CUSTOMER SERVICE OFFICER |
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Question: I pay my salesmen commissions based on a percentage of their monthly sales. Should the sales commissions be classified as Ordinary Wages (OW) or Additional Wages (AW) in my submission to the Board?
Answer:
Generally, OW are wages due for work done in a month while AW are wages due for work done for more than a month. Employers are given a grace period of 14 days to pay CPF contributions after the end of the month for which the wages are payable.
To determine the right classification for the sales commissions paid, examine the time taken for your salesmen to complete the whole sales cycle in order to qualify for the sales commissions.
For example, for fast moving consumer goods such as groceries and medicine, the sales transaction is usually completed once the customer commits to the order. In other words, the sales cycle is short and can be completed within the month. In such instances, sales commissions given are classified as OW subject to the monthly salary ceiling of $5,000.
For sale of items such as cars, the sales cycle is long, that is, a car salesman is required to assist the customer from signing the sales agreement, obtaining the Certificate of Entitlement, the car loan and insurance to delivering the car before he qualifies for the commissions. The completion of the transaction will take more than a month and therefore such commissions given are classified as AW. |
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| A Thank You From MUIS & MENDAKI |
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The Islamic Religious Council of Singapore (MUIS) and Yayasan Mendaki would like to thank all Muslims for their contributions to the Mosque Building and MENDAKI Fund (MBMF) since 1975.
Your contributions have helped the Singapore Muslim community build 21 new multi-functional mosques all over the island and fund many educational programmes.
To better meet the financial needs required to build new mosques and run the various educational programmes for the Muslim community, the contribution rates for MBMF will be revised from 1 July 2005. The last time the rates were revised was 10 years ago in November 1995.
The revised MBMF contribution rates are as follows:
| Monthly Gross Income of Employees |
Current Monthly Contribution |
Revised Monthly Contribution
(from 1 July) |
| Less than $1,001 |
$2 |
$2 |
| $1,001 - $2,000 |
$3 |
$3 |
| $2,001 - $3,000 |
$3 |
$4 |
| $3,001 - $4,000 |
$5 |
$8.50 |
| > $4,001 |
$5 |
$11 | Note: Gross Monthly Income is calculated to the nearest dollar.
This revision will not affect those whose monthly income is less than $2,000. It will only apply to those who earn $2,001 and more monthly.
Benefits To Mosque Building Programme
The revised contribution rates will allow three new mosques scheduled under phases 3 and 4 of the mosque building programme namely mosques in Bishan, Sengkang and Punggol to be built on time by 2010.
Benefits To MENDAKI’s Programmes
The increase in MBMF contributions will enable Yayasan MENDAKI to undertake new initiatives such as Youth-in-Action Programme which aims to keep youths at risk in school, and encourage the Out-of-School youths (OSYs) to re-enter the school system and be equipped with skills needed for gainful employment (Max-Out for OSYs).
MENDAKI also waives the fees for needy Malay/Muslim students attending its various educational programmes, including the MENDAKI Tuition Scheme. In 2004, a total of 2,322 students were granted waivers amounting to $315,877.
With your support, we are confident that MENDAKI will be able to continue in our pursuit to reach out to more disadvantaged families.
For enquiries on MBMF, please call our hotline number 62554766 or visit our website at www.muis.gov.sg/websites/Mbf/mbf.html. The various outreach programmes under Yayasan Mendaki can be found at www.mendaki.org.sg.
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