Click here for the Employers' Handbook in PDF (0.30 MB)     CEO'S FOREWORD YOUR OBLIGATIONS AS AN EMPLOYER Definition of an employer Your employees Your responsibility on CPF payments Registering with us Informing us of any changes   EXCEPTIONS TO PAYMENT OF CPF FOR EMPLOYEES Employees who are exempted from CPF contributions   COMPUTATION OF CPF Definition of wages Rates of CPF contribution   CPF FOR SINGAPORE PERMANENT RESIDENTS (SPR) Foreign employees who obtain SPR status Types of SPRs contribution   MODES OF SUBMITTING CONTRIBUTION DETAILS   MODES OF PAYMENT   OTHER OPTIONAL CPF CONTRIBUTIONS Additional Medisave Contribution Scheme Voluntary CPF contributions   LIMITS ON CPF CONTRIBUTIONS Ordinary Wage Ceiling Additional Wage Ceiling Voluntary Contribution (VC) Limit   CALCULATING CPF ON ADDITIONAL WAGES (ADDITIONAL WAGE CEILING)   REFUND OF CONTRIBUTIONS PAID IN ERROR   ENFORCEMENT OF CPF CONTRIBUTIONS Enforcement Industry surveys Interest on late payment   AGENCY SERVICES Collection of levies, funds and donations Refund of excess payment Government-Paid Maternity Leave (GML) Government-Paid Childcare Leave (GPCL) Adoption Leave     CONTACT US   ANNEXES TYPES OF PAYMENT TO EMPLOYEES CONTRIBUTION RATES (FROM 1 JULY 2007) FOR EMPLOYEES WHO ARE SINGAPORE CITIZENS OR SINGAPORE PERMANENT RESIDENTS (3rd YEAR ONWARDS) GRADUATED EMPLOYER & EMPLOYEE CONTRIBUTION RATES (FROM 1 JULY 2007) FOR SINGAPORE PERMANENT RESIDENTS (SPR) DURING 1ST YEAR OF OBTAINING SPR STATUS GRADUATED EMPLOYER & EMPLOYEE CONTRIBUTION RATES (FROM 1 JULY 2007) FOR SINGAPORE PERMANENT RESIDENTS (SPR) DURING 2nd YEAR OF OBTAINING SPR STATUS FULL EMPLOYER & GRADUATED EMPLOYEE CONTRIBUTION RATES (FROM 1 JULY 2007) FOR SINGAPORE PERMANENT RESIDENTS (SPR) DURING 1ST YEAR OF OBTAINING SPR STATUS FULL EMPLOYER & GRADUATED EMPLOYEE CONTRIBUTION RATES (FROM 1 JULY 2007) FOR SINGAPORE PERMANENT RESIDENTS (SPR) DURING 2nd YEAR OF OBTAINING SPR STATUS CALCULATING ADDITIONAL WAGE (AW) CEILING PAYING CPF ON BONUSES CEO'S FOREWORD The CPF has become a way of life for Singaporeans. From a simple old-age savings scheme in 1955, it is today, an important, life-long financial plan for Singaporeans, helping them save for their retirement, pay medical bills, own homes, and buy insurance for themselves and their families. The CPF underscores the strong tripartite partnership built up among the employees, employers and the Government. With the CPF, employees set aside part of their wages every month for their old age. Employers also play their part by ensuring CPF contributions are paid on time, while Government support gives workers the added assurance that their future and old age are secure. This handbook contains what you need to know about CPF - what constitutes wages and whether these attract CPF, how CPF contributions are computed, and how to pay CPF. More importantly, it offers you a look at your role and responsibility as an employer, and how you can play your part. If you are a new employer, the handbook will give you an overview of what every employer needs to know about CPF. Busy employers will also find the handbook a quick and useful reference for CPF information and services. You can access a range of online services and get more information at our website www.cpf.gov.sg. If you need further assistance, please call our CPF Call Centre at telephone number 1800-227 1188. Our officers will be pleased to assist you. Yours faithfully, Liew Heng San Chief Executive Officer   YOUR OBLIGATIONS AS AN EMPLOYER               Definition of an Employer An employer is any person, company, association or body of persons, whether or not incorporated, employing an employee. It includes:           any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer. any person trading in his own name or who has domestic worker(s). The person must register under the name shown in his identity card or passport. Business companies which employ foreign workers holding work permits in Singapore. These employees are on the Foreign Worker Levy (FWL) Scheme and are exempted from CPF contributions.                 Your Employees Your employee is any person who is employed in Singapore and any Singaporean seaman who is employed by an employer under a contract of service or other agreement entered into in Singapore. Some of the factors which form the contract of service are: the employer’s control over payment, duration of work, dismissal, substitution of workers and method of work. Employees include:     a.  Company Directors Directors of any company are considered employees if they are engaged under a contract of service and paid a salary on top of any fee received. CPF contributions are not payable on directors’ fees voted to them at General Meetings.   b.  Part-time/Casual Employees CPF contributions are payable by the employer for part-time/casual employees. CPF contributions are also payable for all school-leavers or students working on a part-time or temporary basis, except for the following groups:   Tertiary students on full-time industrial attachment. Tertiary students employed under a training programme approved by their institutions. Overseas students on training attachment in Singapore for less than 6 months, as part of their overseas tertiary education requirements. “N” and “O” level students working during their gazetted school holidays. CPF contributions are, however, payable from January of the following year, after their final examinations. “A” level students working during their gazetted school holidays. CPF contributions are, however, payable for students who work after completing their final “A” level examinations in November/December.     c.  Family Workers CPF contributions are required for family members if they are receiving wages for work done for the proprietor.   d.  National Service (Reservist in-camp Training) Under the Enlistment Act, CPF contributions are payable for Operationally Ready NSmen on in-camp training. The employer has to pay the CPF contributions on the wages given by the employer and makeup pay from MINDEF. The employee’s share of contributions can be recovered from the employee’s wages.   e.  Concurrent Employment If an employee is concurrently employed by more than one employer, all his employers must pay CPF contributions on the wages given to the employee. If his combined monthly income is below $4,500, CPF contributions are payable based on the prevailing CPF rates. However, if the employee’s combined monthly income exceeds the CPF salary ceiling of $4,500, the employee may apply to the Board to limit the total of his share of contributions on Ordinary Wages as follows: Age Limit on Ordinary Wages (Employee's share) 50 years and below $ 900 Above 50 to 55 years $ 810 Above 55 to 60 years $ 562 Above 60 to 65 years $ 337 Above 65 years $ 225   Applications to limit the total amount of the employee's share of contributions on Ordinary Wages should be addressed to the Court Proceedings Section. It should indicate:     the amount of Ordinary Wages the employee’s share of CPF contributions the amount of CPF contributions to be paid through each employer   Each employer will have to pay their normal share of the CPF contributions on the full amount of the wages, subject to the $4,500 Ordinary Wage Ceiling.   f.  Singapore Permanent Residents (SPRs) CPF contributions are mandatory for foreigners from the day they attain PR status in Singapore.                 Your responsibility on CPF payments       You have a grace period of 14 days to make payment of CPF contributions after the end of the month for which CPF contributions are due. If the due date falls on Sunday or Public Holiday, CPF contributions must be paid by the next working day. You are required to pay the employer’s and employee’s share of CPF contributions monthly for all employees at the rates set out in the CPF Act. The contributions payable should be based on the employee’s actual wages earned for the month. You are entitled to recover the employee’s share when the contributions are paid for that month. If you fail to recover the money then, and the error was not due to your negligence, you can still do so provided: you have paid the CPF contributions to the Board, and you have either forwarded your employee’s written consent to the Board, or obtained the Board’s written permission on the matter. This must be done within 6 months from the time the contributions should have been recovered. Registering With Us   a.  Making Your First CPF Contribution as a New Employer You are strongly encouraged to sign up for CPF e-Submission to make your first CPF payment. To do so, please submit the following documents at least 7 weeks before the due date of your first CPF payment: 1. Form CPF/1 2. CPF e-Submission Registration Form 3. Application for Inter-Bank GIRO Form (if applicable)   For more information on CPF e-Submission, click here.   If you need to make your first CPF payment by cheque, please attach the cheque together with the Form CPF/1 and submit it to us. Your cheque should be crossed and made payable to “CPF Board”. The employer’s name, contact details and the words “Making First CPF Contribution” must be indicated at the back of the cheque.   You will receive a welcome package and your CPF Submission Number after we have processed your Form CPF/1.   For your information, a processing fee of $7 per employee per month is charged for employers who submit CPF contribution details for 11 and more employees using the hardcopy Payment Advice (i.e. not on CPF e-Submission). This will be extended to employers with 4 to 10 employees from October 2009.   b.  Registration of New Employee For every new employee, you are required to complete the New Employee Contribution Form (Form CPF 92) if you are submitting the contribution details by manual mode i.e. via Payment Advice (Form CPF 91). Form CPF 92 has to be submitted together with the Payment Advice.   Form CPF 92 is not required if you are submitting the CPF contribution details via CPF e-Submission.   Informing Us Of Any Changes     a.  Change of Address Inform the Board of any change in address by completing the form Request for Change of Employer’s Contact (Form CPF/3). Please note that P.O. Box or V. Box address will not be accepted.     b.  Change in Entity Employers who are changing the legal status of their entities are required to re-register with the Board. If you are changing the legal status of your existing entity (e.g. Sole Proprietor to Private Limited Company) without any changes in your particulars (e.g. contact details, Principal Place of Business etc), you are only required to complete Section A and D of Form CPF/1 and submit it to us. Please also inform the Board to cancel your existing CPF Submission Number (CSN). You will receive your new CPF Submission Number after we have processed your form.     c.  Change in Name Inform the Board in writing if there is a change in name and attach the documents mentioned below which are obtainable from the Accounting & Corporate Regulatory Authority (ACRA). For companies, a copy of the Instant Computer Information (Business Profile) or Certificate of Incorporation on Change of Name of Company must be attached. For business firms (i.e. sole-proprietor or partnership), a copy of the Instant Computer Information (Business Profile) or Statement of Changes in Business Particulars including Cessation of Business must be submitted.     d.  Change in Employees’ Particulars Ensure that the affected employees inform the CPF Board of any changes in their personal particulars which include:     change in name change in passport/identity card/special pass number change in Singapore Permanent Resident (SPR) or citizenship status     e.  Employees who have left the company For electronic submission, indicate “Leavers” under the column “Employment Status”. If you are using the Payment Advice, indicate the employee’s last day of service under the column “Date left Employment” in the Payment Advice (Form CPF 91).     f.  Termination of business Employers, who have terminated their business, should inform the Board immediately. This is to ensure that the CPF Submission Number (CSN) is cancelled immediately. Otherwise, a letter of demand will be sent when no payment is received.             EXCEPTIONS TO PAYMENT OF CPF FOR EMPLOYEES Employees who are exempted from CPF contributions     a.  Foreigners on Employment Pass, Professional Visit Pass or Work Permit CPF contributions are not allowed for foreigners. Both the employer’s and employee’s share of contributions for foreign employees on Employment Pass, Professional Visit Pass or Work Permit will not be accepted.     b.  Partners, sole-proprietors or self-employed All Singapore citizens or Singapore Permanent Residents who derive income from Singapore or from outside Singapore through any trade, business, profession or vocation excluding employment under a contract of service are considered self-employed. Unlike employees, they do not contribute to all 3 CPF accounts. Instead, they are only required to contribute to their Medisave, which is computed based on their annual net trade income earned.     c.  Employees working overseas CPF contributions are not mandatory for Singaporean employees who work overseas. If you wish to continue making CPF contributions for your existing employees who are posted overseas, these are deemed as voluntary contributions. You have to register for a new CPF Submission Number (CSN) for such payments.       COMPUTATION OF CPF   Definition of Wages CPF contributions are computed based on the employee’s wages. Under the CPF Act, wages are defined as remuneration in money due or given to an employee in respect of his employment. This includes overtime pay, allowances, cash awards, commissions and bonuses. Annex A shows a general guide to the types of allowances paid to an employee. For the purpose of computation, “wages” are classified as follows:   Ordinary Wages Ordinary Wages are wages due or granted wholly and exclusively in respect of an employee’s employment in that month and payable before the due date for payment of CPF contributions for that month. This includes allowances (e.g. food allowance or overtime payment).     Additional Wages Additional Wages are wages which are not granted wholly and exclusively for the month. Examples are the annual bonus, leave pay, incentive and other payments made at intervals of more than a month.     Total Wages The total amount of an employee’s wages for any calendar month is the sum of his Ordinary Wages for the month and the Additional Wages paid to him in that month.     Total Wages = Total Ordinary Wages + Total Additional Wages     Wages Not Paid Monthly When wages are not paid according to the calendar month, e.g. weekly or fortnightly, apportion the wages according to the calendar month for which CPF contributions are paid. The apportionment is necessary to determine the “Ordinary Wages” for the calendar month on which CPF contributions are computed.   Example: Company XYZ pays its employees wages every week. In the table below, computation of CPF contributions for the month of February is based on the wages from 1 to 28 February; i.e. wages for 26 to 31 January for the first week and 1 March for the last week are excluded.             Rates of CPF Contribution     CPF contributions are payable as long as your employee’s wages for the calendar month exceed the following amount: Age Employee's wage exceeding 35 years and below $50 Above 35 to 50 years $55.18 Above 50 to 55 years $57.17 Above 55 to 60 years $60.04 Above 60 to 65 years $65.06 Above 65 years $65.06 The contribution rates vary according to the individual employee’s age and monthly wages. CPF contribution rates for Singaporeans and SPR employees can be found in Annex B to F.   When your employee moves to the next age group   When your employee moves to the next age group, the contribution rate of the next age group will only apply from the first day of the month after his birthday. The example below shows the change in contribution rate for an employee moving from the ‘50 years and below’ age group to the ‘above 50-55 years’ age group.     Example:   CPF FOR SINGAPORE PERMANENT RESIDENTS (SPR)   Foreign employees who obtain SPR status   CPF contributions are payable once a foreign employee obtains SPR status. To help the employee adjust to the lower take-home pay, both the employer and employee will contribute CPF at graduated rates for the first two years. The first year rate is payable on the date of your employee’s conversion to a SPR. The second and third year rates are payable from the month following the anniversary of the employee’s conversion to a SPR. For example, if your employee became a SPR on 23 January 2009, the first year rate would apply from 23 January 2009. The second and third year rates will apply from 1 February 2010 and 1 February 2011 respectively. Foreigners, who have obtained their SPR status, should only maintain one CPF account. Employers should inform such employees to merge their previous CPF account (if any) with their new CPF account.   CPF contributions for SPRs into CPF accounts with the prefix SA/SB/SD/SF/TC/TF will be rejected. Merging of CPF accounts can be done by submitting clear photocopies of the documents listed below:   Singapore Identity Card Passport CPF Membership Card Entry/Re-entry permit       Types of SPR contributions   SPR employees and their employers have the option to jointly apply to CPF Board to contribute at other prescribed rates during the employee’s first two years of obtaining the SPR status. A summary of the options available is as follow: Option (1) applies once your employee obtains his SPR status. For options (2) and (3), the employer and employee must jointly apply to the Board using the prescribed form CNR/PR/94A. Once the application is approved, it is irrevocable. These rates will cease to apply upon a change of employment within the first two years, i.e. the rates will go back to the graduated rates.   MODES OF SUBMITTING CONTRIBUTION DETAILS   You may wish to submit your CPF contribution details electronically via the CPF website. For added convenience, the payment is deducted electronically when you submit a file.   a.  CPF e-Submission     The benefits of e-submission are as follows:     Submission of CPF contribution details can be made anytime, anywhere Eliminate the hassle of paperwork, saving time and cost E-submission status can be tracked online Free email reminders from the Board on the submission of CPF contribution details   b.  What are the modes for e-submission?     Electronic Mode Do I need to pay? What do I need to e-submit? How do I make payment? AXS No. It’s free N.A. NETS/CashCard/GIRO/Diners Club Credit Card Online Form No. It’s free Computer with internet access GIRO/internet banking File Transfer using payroll system No. It’s free Computer with internet access GIRO/internet banking File transfer using Auto-eXcel application No. It’s free Computer with internet access GIRO/internet banking Velocity@ocbc No. It’s free Computer with internet access Registered OCBC Velocity user For more information, please call 1800 538 1111 or visit any OCBC bank branches Interfund transfer mPAL- Employer Submission GPRS connection charges apply. Mobile phone with GPRS access. GIRO     Contact Us     For enquiries on e-submission: Electronic Submission Section Tel : 6220 2340 Email : employer-esubmission@cpf.gov.sg Fax : 6229 3499   Submission using hardcopy forms     CPF Payment Forms Please complete and return the following forms if you are submitting contribution details in hard copy:     Payment Advice (Form CPF 91), giving details of the CPF contributions payable. If the employer has more than 5 employees, complete the details on Form CPF 91A New Employee Contribution Form (Form CPF 92), if you are paying CPF contributions for the first time for your employee(s), or if the name of your employee(s) does not appear on the CPF Payment Advice.     The Ordinary and Additional Wage details should be completed for all the CPF payment forms (Forms CPF 91, CPF91A and CPF 92). The Record of Payment (Form CPF 90) will be sent to you once the contribution details have been received and your payment processed. Your Payment Advice for the following month’s submission will be enclosed with the Record of Payment. You are advised to check your Record of Payment and inform the Board immediately of any inaccuracy in your payment record. The Record of Payment should be kept for future reference. If you have misplaced the Record of Payment and request a reprint, a service charge will be levied. From October 2009, employers who submit CPF contribution details for 4 to 10 employees using the hardcopy Payment Advice will have to pay a Processing Fee of $7 per employee per month. The fee is already imposed on employers with 11 or more employees. In the near future, employers with 3 or fewer employees will also need to pay the Processing Fee if they are not on e-submission.         MODES OF PAYMENT   CPF contribution details must be submitted with CPF payments. Payments can be made in either one of the modes listed below:     a.  Inter-bank GIRO GIRO remains the most convenient option as employers do not have to get any signatories to effect payment. Just complete and return the Application for Interbank GIRO (IBG) form to the Board. We will send the form to the employer’s appointed bank for processing. If the payment is due before the bank could approve the IBG form, employers will have to make payment through other available modes. The IBG form authorises the appointed bank to deduct the monthly CPF contributions from the employer’s bank account. The amount deducted is based on the contribution details submitted by the employers before the stipulated date. Employers are reminded to submit the monthly contribution details before the GIRO deduction date via any of the following modes:     E-mode : CPF e-Submission (Employers) Service Manual Mode : Payment Advice (Form CPF 91)     b.  Standing Instructions Small employers (1-10 employees) can give a one-time standing instruction to pay a fixed amount for their employees every month. This is suitable for employers whose CPF contributions do not vary monthly. All they need to do is to complete and submit these forms to the Board :   complete the Standing Instruction Form (SI1/GIRO) complete the Application for Interbank GIRO Form (IBG)   The same amount will automatically be deducted each month through GIRO. If there are changes taking effect from a particular month, the employer has to complete a new Standing Instruction Form.   For additional payments such as bonuses and leave pay, the employer only needs to submit a Payment Advice stating the contribution details. He is not required to submit a new Standing Instruction Form. The additional payment will also be deducted through GIRO.     c.  MAS Electronic Payment System (MEPS) This is for employers whose contributions vary monthly. Simply complete an authorisation form and return it to the bank.   The form authorises the bank to transfer the company’s funds to the Board’s bank account. This form must be completed every month.     d.  E-Payment (also known as Internet Banking) This option is suitable for employers who want to retain tight control over their cash flow and yet enjoy the convenience of electronic payment. With e-payment, employers are able to initiate the deduction. The bank does an immediate check to determine if there are sufficient funds so payment transactions can be confirmed immediately. To use the free e-payment system, the employer has to:   sign up for CPF e-Submission (Employers) and have an account with a bank linked to the e-payment service.     e.  Cheques Cheques should be crossed and made payable to the CPF Board. The reverse side of each cheque must bear the CPF Submission Number (CSN). Cheques marked “non-transferable” or where the word “only” appears after the payee’s name will be rejected. Cheque payments may be made at any CPF Service Centres.   f.  Cash Cash payment can be made at any Singapore Post Office. A receipt will be issued for cash payments at the Singapore Post Office. Please do not send cash through post.   g. NETS/CashCard Payment by NETS/CashCard can be made at any Singapore Post Office and any AXS Station located islandwide. A receipt will be issued for payment made.   h.  Diners Club Credit Card Payment by Diners Club Credit Card can be made any AXS station located islandwide. A receipt will be issued for payment made.   i.  Interfund Transfer Fund transfer using OCBC corporate account. This option is only available for e-submission via Velocity@ocbc.     OTHER OPTIONAL CPF CONTRIBUTIONS   Additional Medisave Contribution Scheme (AMCS) Employers can now contribute more to their employees’ Medisave account through the AMCS. Each year, employers may contribute up to $1,500 per employee. The employees may use the additional Medisave contributions to purchase an approved personal medical insurance, or meet healthcare expenses when the need arises. AMCS contributions are not part of the prevailing CPF Voluntary Contribution Limit of $26,393 for the calendar year. To implement the AMCS for your employees, you have to apply for a separate CPF Submission Number (CSN). Application can be submitted to us using New Employer's First CPF Contribution (Form CPF/1). Voluntary CPF Contributions Homemakers, Singaporean employees working overseas and those who wish to build up their retirement savings with the Board may make their own voluntary contributions on a monthly basis. The voluntary contributions should be paid through GIRO. To apply, please complete and return these forms:     Application for Interbank GIRO Standing Instructions (SI) for the payment of voluntary contributions - Form SI/VC (via GIRO)     Singaporeans, who wish to make a one-time voluntary contribution, may do so by sending a cheque to the Board’s Main Office. On the reverse side of the cheque, indicate clearly the name, the NRIC number and the contact number. Voluntary contributions can also be made via electronic payment through my cpf Online Services at our website. However, the CPF members must have an Internet banking account with DBS, UOB or Citibank. Voluntary contributions can also be made via AXS stations. Payment can be made by NETs, Cashcard and Diners Club Credit Card. All voluntary contributions are subject to the prevailing limit of $26,393 for the calendar year, which includes mandatory contributions paid by employers.     LIMITS ON CPF CONTRIBUTIONS   a.  Ordinary Wage (OW) Ceiling The maximum amount of CPF payable is based on a monthly salary ceiling of $4,500 for Ordinary Wages.     b.  Additional Wage (AW) Ceiling The AW Ceiling sets the maximum amount of Additional Wages on which CPF contributions are payable per year. An employee’s AW Ceiling is computed on a per employer basis. The formula to calculate the AW Ceiling is as follows: From 2006 onwards $76,5001 minus Total Ordinary Wages subject to CPF contributions in the year2 1Equivalent to 17 months multiplied by the monthly CPF salary ceiling of $4,500. 2The sum of the monthly Ordinary Wages subject to CPF, up to the maximum of $54,000 (i.e. $4,500 x 12). You are required to monitor and limit the contributions on Additional Wages of your employees. This is to prevent the refund of excess payment and avoid situations where refunds could not be made due to insufficient funds in the employee’s CPF accounts. Please refer to Annex G, “Calculating Additional Wage Ceiling” for more examples. You may use the AW Ceiling Calculator to help you calculate the AW Ceiling, OW and AW subject to CPF as well as the CPF payable.     c.  Voluntary Contribution (VC) Limit The maximum amount of CPF contributions that a person may contribute voluntarily is the difference between the limit of $26,393 and the amount of mandatory contributions (MC) made for the calendar year. If the employee’s mandatory contributions have already reached $26,393, no voluntary contribution (VC) can be made.   Mandatory contributions are compulsory contributions required under the CPF Act. This includes CPF contributions on the Ordinary and Additional Wages for employees, and Medisave contributions by self-employed persons. The table below shows how to calculate the maximum amount of voluntary contributions that can be made for the calendar year.     Amount of MC Maximum amount of Voluntary Contributions (VC) MC < $26,393 Maximum amount of VC = $26,393 - MC MC >= $26,393 VC = $0     Any contribution paid in excess of the approved limit will be refunded without interest.         CALCULATING CPF ON ADDITIONAL WAGES (ADDITIONAL WAGE CEILING)   a.  When CPF on Additional Wage is paid before the end of the year When the Total Ordinary Wages subject to CPF for the year is not known yet, estimate the Additional Wages Ceiling based on the preceding year’s wage records. This is done by applying the actual Ordinary Wages or salary ceiling of $4,500 paid each month in the preceding year, whichever is lower, to estimate the Total Ordinary Wages subject to CPF contributions.   b.  When an employee resigns If the employee resigns in the current year:     Recalculate the Additional Wage Ceiling based on the actual Ordinary Wages subject to CPF, paid up till the last month of employment and make CPF adjustments if necessary. Pay any shortfall in the CPF contributions together with the employee’s contributions for his last month of employment. Apply for a refund of the excess contributions (if any) by submitting the refund application form, CNR/RFM/CAPVC, online or print and send the form to the Refund Management Section.   c.  When there is a change in the age group during the year If there is a shortfall in CPF contributions on Additional Wages and the employee has reached the next age group during the year, the applicable rate on the shortfall will be the same rate for the month in which the Additional Wages were paid. Any shortfall should be paid together with December’s contributions or contributions for the employee’s last month of employment, whichever is applicable.   d.  When there is excess contributions paid You should only pay contributions on the Additional Wages up to the Additional Wage Ceiling. If excess contributions have been made, employers and employees can apply for a refund. All applications must be submitted when Total Wages are known, or in the following year. Online applications can be submitted through the E-services page on the website.           REFUND OF CONTRIBUTIONS PAID IN ERROR   If you have inadvertently paid more CPF than required, you may apply for a refund within one year from the date of payment. Online applications can be sent through our E-services page on the CPF website. Under Section 74 of the CPF Act, the Board may refund any CPF contributions paid only if the amount had been paid in error.  An error can occur when there is a discrepancy between the amount of CPF contribution paid and the amount of CPF contribution payable at the end of the month. For example, assuming that under the employment terms, an employee is paid a certain bonus on the condition that he continues his employment with the employer for the next 6 months following the bonus payment.  If an employee was given the bonus in December 2008 but had resigned within the month of December in 2008, then the bonus could no longer be considered as payable to him for that month. If CPF contributions had been paid on the bonus, there would be a discrepancy between the amount of CPF contribution paid and the amount of CPF contribution payable at the end of December 2008. This would constitute an error and a refund of CPF contributions paid on the bonus could be made.  However, if an employee resigned after December 2008, the bonus would be considered payable to him in the month of December 2008 under the employment terms. In this instance, there is no discrepancy between the amount of CPF contributions paid and the amount of CPF contributions payable at the end of December 2008. Thus, the Board is unable to refund CPF contributions paid on the bonus for the employee who had resigned after the payment month of the bonus.     ENFORCEMENT OF CPF CONTRIBUTIONS   Enforcement The Board takes a serious view of employers who pay late or do not pay CPF contributions for their employees. Upon detection of late payment or non-payment of contributions, action will be taken to recover any arrears or CPF contributions owing.   Step 1: Employers In Default The Board’s computerised system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by registered post to the employers informing them that legal action will be taken unless CPF contributions, interests and composition amount are paid within the notice period. Employees, whose contributions are not paid, will be informed of the non-payment.   Step 2: Employers who fail to pay before the court hearing If the employers fail to pay up, they will be taken to court. The court will order them to pay the contributions, interests and a court fine.   Step 3: Conviction If the employers still do not pay up, a Warrant is issued to seize and sell the employers’ assets. Bankruptcy or winding up proceedings may also be instituted against the employers. However, this will only be done as the last resort. First-time defaulters, who are convicted of a late payment offence, may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence. The director, manager, secretary or other officer in charge of paying the CPF contributions, as well as the corporate body found guilty of a late payment offence may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence. Employers, who have recovered the employee’s share of contributions and failed to pay the contributions to the Board, may be fined $10,000 or jailed 7 years, or both.   Industry Surveys The Board conducts spot checks on various industries to determine the level of compliance. Such checks involve on-site inspection of employees’ wage records. Should discrepancies be detected, interviews and verifications with the employees may be conducted on the spot, and further checks made on the wage records. If the employer is found to have underpaid or omitted to pay contributions, the arrears plus penalty interest will be computed and recovered. Interest on Late Payment Interest on late payment is calculated daily at the rate of 1.5 percent per month, starting from the first day of the following month after the contributions are due (e.g. interest for January contributions will be calculated from 1 February). The minimum interest payable is $5 per month. Example XYZ Company made a CPF contribution of $3,000 for the month of October on 20 November 2008. This payment is late by 19 days. Therefore, the amount of late payment interest will be: = $3,000 x 1.5% x 19/30* = $28.50 *Number of days the payment is late/number of days in the month. The cents should be dropped for the interest. Hence, the late payment interest payable will be $28.     Keeping Your Employees Informed You may also encourage your employees to check their Statement of Account to ensure that you have paid their CPF contributions correctly. If the CPF contributions are not paid correctly, they should inform the Board on the matter. Employees can access their Statement of Account anytime, anywhere through my CPF online services with their SingPass.               AGENCY SERVICES   Collection of levies, funds and donations     The CPF Board is also the collecting agent for the following:     Foreign Worker Levy (FWL) Skills Development Levy (SDL) Mosque Building and Mendaki Fund (MBMF) Singapore Indian Development Association (SINDA) Fund Chinese Development Assistance Council (CDAC) Fund Eurasian Community Fund (ECF) SHARE Programme Donations   Foreign Worker Levy (FWL) The FWL is a pricing mechanism to control the number of foreign workers (including foreign domestic workers) in Singapore. An employer who is liable to pay the levy for his foreign workers is not required to pay CPF contributions for them. However, the employer is required to pay the Skills Development Levy (SDL) for the workers at the prevailing rate and wage ceiling (see below for more information). If a work permit holder on the FWL Scheme is granted Singapore Permanent Resident (SPR) status, he will be placed on the CPF scheme. This will take effect from the day he is granted SPR status. More information on the levy rates can be found at Ministry of Manpower (MOM) website at www.mom.gov.sg. a. Mode of payment It is compulsory for all FWL employers to pay their levy by Inter-bank GIRO (IBG). Employers who fail to pay by IBG may result in their workers’ permits being cancelled. IBG application forms are available at CPF website www.cpf.gov.sg and at all CPF Service Centres. If the levy is due before the bank approves the IBG application or the IBG deduction is unsuccessful, employers will have to make payment through any of the following modes: i. Internet You can perform Internet Banking through the iFWLB website www.mom.gov.sg > Services and Forms > Work Permit for Foreign Workers. You would need your SingPass and an Internet Banking account with DBS/UOB/Citibank. To obtain a SingPass, please visit www.singpass.gov.sg.     ii. AXS Stations You may use NETS/CashCard/Diners Club Credit Card to make levy payment at any AXS station islandwide. For Business Foreign Worker Levy Employers, you may pay your levy together with your CPF contributions.     iii. SingPost You can make cash/NETS payment at any SingPost office together with the FWL payment advice. Please do not send cash by post.     iv. Cheques You can mail your cheque to CPF Board or make the cheque payment at any CPF Service Centre. Please note that the Board does not accept post-dated cheques. Cheques should be crossed and made payable to the CPF Board. Please indicate the following items on the reverse of the cheque:- (i) 'For FWL Payment' (ii) CPF Submission Number (iii) Employer's Name (iv) Contact Number b. Grace period for payment The grace period for FWL payment is 14 days after the end of the month for which the levy is due and payable. For employers who are on FWL IBG payment, the levy deduction will be made on the 17th of the month. If 17th falls on a Saturday, Sunday or Public Holiday, the levy will be deducted on the next clearing day, which falls between Monday and Friday. c. Late payment of levy Interest on late levy payment is calculated at 2% per month or $5 (whichever is greater), starting from the first day of the month in which levy is due. (e.g. interest for January’s levy will be calculated from 1 February.) d. Work Permit Cancellation The employer must return his worker’s work permit to the Work Pass Division immediately for cancellation when the worker leaves his employment. If he fails to do so, he would have to pay the levy for the worker for as long as the work permit remains valid. For more details, please contact Work Pass Division at 6438 5122 or visit MOM website at www.mom.gov.sg. e. Waiver of FWL An employer may apply for a waiver of the Foreign Worker Levy (FWL) under circumstances as allowed by MOM. This applies to worker(s) not in Singapore for the following reasons: on home leave (not applicable to Malaysian workers); or on vacation leave of at least 7 consecutive days; or fails to return to Singapore after home leave/vacation; or on hospitalisation leave; or Under police custody or is housed at the Embassy; or granted Singapore Permanent Resident status; or on board of a vessel which leaves Singapore's port for at least 3 consecutive days (applicable to workers who are in the harbour craft industry); or serving National Service in his home country for 3 months (applicable to Malaysian workers only)   You may submit your application online by logging in with your SingPass. Alternatively, you can download the form (FWL 12) and mail it back to CPF Board. Please refer to the application form for more information on the supporting documents required. You will need your CPF Submission Number (CSN) to complete the form. The application must be made within one year after the end of the month in respect of which the levy has been paid. The amount waived will be used to offset future payments of the FWL. However, the employer can apply for a refund of the amount waived if he is no longer employing any foreign workers. f. Refund of FWL Paid in Excess If excess levy has been paid, you can use it to offset any outstanding levy/penalty before applying to the CPF Board for a refund. The refund must be made within one year after the end of the month in respect of which the levy has been paid. To apply for a refund, submit the online application, or print a copy of the application form (FWL 7) and mail it back to CPF Board.   You will need your CPF Submission Number (CSN) to complete the form.     Skills Development Levy (SDL) The CPF Board collects the SDL on behalf of the Singapore Workforce Development Agency. The SDL collected is channelled into the Skills Development Fund (SDF), which provide grants to companies that send their workers for training. Employers have to contribute SDL for all employees* up to the first $4,500 of gross monthly remuneration** at a levy rate of 0.25%, subject to a minimum of $2, whichever is higher. For more details, please click here. * Employees include full-time, casual, part-time, temporary and foreign workers rendering services wholly or partly in Singapore. ** Remuneration is any wage, salary, commission, bonus, leave pay, overtime pay, allowance (e.g. housing) and other payments in cash. Example of computation WORKER GROSS MONTHLY REMUNERATION SDL PAYABLE REMARKS A $150.80 $2.00 Minimum of $2 is payable B $609.50 $2.00 Minimum of $2 is payable C $2,000.00 $5.00 0.25% levy D $4,500.00 $11.25 0.25% levy E $4,502.03 $11.25 First $4,500 levied at 0.25% F $10,000.00 $11.25 First $4,500 levied at 0.25%   Total SDL $42.75 $42.00 is payable Total SDL Payable is $42.00. Cents should be ignored only when you arrive at the TOTAL SDL Payable. Mosque Building and Mendaki Fund (MBMF) The Mosque Building & Mendaki Fund (MBMF) comprises the Mosque Building component and the Mendaki component. The Mosque Building component is used to build new mosques, upgrade and re-develop current mosques, and support Religious Education. The Mendaki component is used to develop educational and social programmes to strengthen and uplift the Malay/Muslim families. All working Muslim Singapore Citizens, Singapore Permanent Residents and foreign workers are subjected to contribute to MBMF according to the income levels indicated below:     Monthly Total Wages1 Monthly Contribution (with effect from 1 March 2009) Less than $1,0012 $2.00 (no change) $1,001 to $2,000 $3.50 $2,001 to $3,000 $5.00 $3,001 to $4,000 $12.50 $4,001 and above $16.00 1 Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowance (e.g. food, shift or transport allowances), commission and bonus. For more details on total wages, please click here.   2 An employee whose salary for a particular month is less than $200 does not have to contribute to the Fund     Employers shall deduct the prescribed amounts from the wages of employees. If the employees wish to contribute different amounts or opt out of the scheme, they can download MBMF Change Form (Form C) from Muis website www.muis.gov.sg. The form can be completed by the employees and submitted to Muis. For more information on MBMF, click here.     Singapore Indian Development Association (SINDA) Fund All working Indians (including the following groups with ethnic origins in the Indian sub-continents such as Bangladeshis, Bengalis, Parsees, Sikhs, Sinhalese, Telegus, Pakistanis, Sri Lankans, Goanese, Malayalees, Punjabis and Tamils) in Singapore may contribute a monthly sum to SINDA Fund, according to the income levels indicated below:     Wage Level Minimum Monthly Contribution Up to $600 $1.00 Above $600 - $1,500 $3.00 Above $1,500 - $2,500 $5.00 Above $2,500 $7.00     The prescribed amounts will be automatically deducted from the wages of employees. If the employees wish to contribute different amounts or opt out of the scheme, they have to obtain the relevant forms from SINDA and submit them to their employers. Foreign workers on Foreign Worker Levy Scheme do not have to contribute to the Fund.   Chinese Development Assistance (CDAC) Fund All employees belonging to the Chinese community may contribute monthly to the CDAC Fund. The Chinese Community means every person who is permanent resident or citizen of Singapore of Chinese descent. The monthly contribution is according to the wage levels indicated below:   Wage Level Minimum Monthly Contribution Less than $2,000 $0.50 $2,000 or more $1.00   The prescribed amounts will be automatically deducted from the wages of Chinese employees. If employees wish to contribute different amounts or opt out, they have to get the rele