Employer obligations

Employers are required by law to contribute to the Central Provident Fund (“CPF”). Under the scheme, employers are to ensure that CPF contributions are paid monthly for its employees at the rates set out in the Central Provident Fund Act (Cap. 36). The employer is entitled to recover a percentage of that contribution from the employee through deductions from the employee’s wages. This occurs when wages are paid out.

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.

For whom do employers need to pay CPF?

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.

CPF contributions are also payable for the following employees:

1. Company Directors
2. Part-time/Casual Employees
3. Operationally Ready NSmen on in-camp training. Under the Enlistment Act, employers have 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.
4. Family members of the business owner, if they are receiving wages for work done for the proprietor.
5. Employees concurrently employed by another  employer
6. Singapore Permanent Residents (SPRs)

Employers 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.

Employers are required to pay the employer’s and employee’s share of CPF contributions monthly for all employees (Singapore Citizens and Singapore Permanent Residents) 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.

Recovery of the employee’s share of CPF contributions

Employers are entitled to recover the employee’s share when the contributions are paid for that month. If an employer fails to recover the money by then, and the error was not due to negligence, he can still do so provided:

1. The employer has paid the CPF contributions to the Board, and
2. The employer has either forwarded your employee’s written consent to the Board, or obtained the Board’s written permission on the matter.

Recovery of the employee’s share of CPF contributions must be done within six months of the time the contributions should have been recovered.

For more details

For details on employer CPF contributions, please refer to the Employer’s Guide to CPF on the CPF Board website.