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【Singapore Company Registration Tips】Who Needs to Contribute to Central Provident Fund (CPF)?

【Singapore Company Registration Tips】Who Needs to Contribute to Central Provident Fund (CPF)?
【Singapore Company Registration Tips】Who Needs to Contribute to Central Provident Fund (CPF)?

【Singapore Company Registration Tips】Who Needs to Contribute to Central Provident Fund (CPF)?
 

The Central Provident Fund (CPF) is Singapore’s comprehensive social security system, designed to provide for retirement, healthcare, and housing. All Singapore citizens and permanent residents (PRs) working in Singapore are required to contribute to CPF as mandated by law.
 

✅ Employer Obligations

Employers must make monthly CPF contributions for eligible employees under the CPF Act.

Contributions include both employer and employee portions. The employee portion can be deducted from their salary.

 

👩‍💼 Employees Required to Contribute to CPF

Employers must contribute CPF for employees who are Singapore citizens or PRs, including:

1. Full-time, part-time, or temporary employees

2. Company directors

3. Family members of business owners who are paid a salary

4. National Servicemen (NSmen) in training, including MINDEF back pay

5. Employees working for multiple employers simultaneously

6. Singapore seafarers employed under a contract

 

📅 Contribution Deadlines

CPF contributions are due at the end of each month, with a 14-day grace period for payment.

If the last day of the grace period falls on a weekend or public holiday, payment can be made by the next working day.

 

💰 Foreign Employees and CPF

Foreign employees (holding an Employment Pass/Work Permit) do not contribute to CPF, but employers must pay the Skills Development Levy (SDL).

If a foreign employee becomes a Singapore PR, CPF contributions are required from the date PR status is granted.

 

⚠️ Penalties for Non-Compliance

Late interest: 18% per year (1.5% per month), minimum S$5/month

Fines/Imprisonment:

First offense: S$1,000 – S$5,000 or up to 6 months imprisonment

Repeat offense: S$2,000 – S$10,000 or up to 12 months imprisonment

Serious violation (deducting employee CPF but failing to pay): up to S$10,000 and/or up to 7 years imprisonment

 

👉 Employers must ensure CPF contributions are paid accurately and on time.

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