Employers' Handbook




	1.	THE CENTRAL PROVIDENT FUND (CPF) BOARD
	2.	EMPLOYERS AND THEIR OBLIGATIONS
	3.	CPF FOR EMPLOYEES
	4.	EXCEPTIONS TO PAYMENT OF CPF FOR EMPLOYEES
	5.	COMPUTATION OF CPF
	6.	REFUND OF CONTRIBUTIONS PAID IN ERROR
	7.	ENFORCEMENT OF CPF CONTRIBUTIONS
	8.	MODE OF SUBMITTING CONTRIBUTION DETAILS
	9.	MODE OF PAYMENT
	10.	EMPLOYER SERVICES
	11.	AGENCY SERVICES
	12.	ENQUIRY SERVICES
	13	Annex A - Allowances & CPF
	14	Annex B - Contribution rates for employees who are Singaporean
	15	Annex C - Contribution rates for PRs during 1st year of obtaining PR
	16	Annex D - Contribution rates for PRs during 2nd year of obtaining PR
	17	Annex E - Calculating Additional Wage (AW) Ceiling
	18	Annex F - Foreign Worker Levy rates

	1.	*THE CENTRAL PROVIDENT FUND (CPF) BOARD*

		The CPF was set up in 1955 to provide financial security for workers in their retirement or when they are no longer able to work. Today, this scheme has evolved into a comprehensive social security savings system that provides its members with financial security in old age. Over and above that, CPF savings help to meet the needs of families in healthcare, home-ownership, family protection and asset enhancement. The CPF is jointly supported by the employees, employers and the Government. There are currently more than 80,000 employers paying CPF for 1.2 million workers.

EMPLOYERS AND THEIR OBLIGATIONS

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.

Registration with CPF Board
Every employer has to register with the CPF Board. To register, please complete the Employer Registration Form (CPF/ 1) and submit it to the Board.

For employers who are trading in their own names or who have domestic workers only, registration must be done under the name shown in their identity card or passport.

The employer will then be given an Employer Reference Number and a Payment Advice (Form CPF 91) to make payment.

Change in Employer's Particulars
Employers must inform the Board in writing, and attach the relevant supporting documents, if there is a change in their particulars.

*Name of Employer*
	For companies, a copy of the Instant Computer Information (Business Profile) or Form 13 (Certificate of Incorporation on Change of Name of Company) is required.
	For business firms (i. e. sole-proprietor or partnership), a copy of the Instant Computer Information (Business Profile) or Form D (Statement of Changes in Business Particulars Including Cessation of Business) must be submitted.

If there is a change in the Business Registration Number (e. g. when a business firm converts to a private limited company), employers must apply for a new Employer Reference Number, and inform the Board to cancel the existing Employer Reference Number.

Address of Employer This can be done by completing Part 3 of the payment advice or using the company's letterhead. Registration of New Employees Employers have to register their new employees by completing the New Employee Contribution Form (Form CPF 92). Employees who are transferred to another employer and paid CPF contributions under another Employer Reference Number must be registered as new employees under the new reference number. Change in Employee's Particulars Employers should ensure that their employees inform the CPF Board in person of any changes in their personal particulars:
	Change in name,
	Change in passport/ identity card number/ special pass number, and
	Change in Permanent Resident (PR) or citizenship status.

Employees who have been issued with a Singapore identity card will be given a new CPF account. The new CPF account number is the same as their Singapore identity card number. Employers should therefore pay CPF into the new account, and inform their employees to merge their previous CPF account (if any) with the new CPF account, so that only one CPF account is maintained. Payment CPF contributions must be paid monthly for all employees at the rates set out in the First Schedule of the CPF Act from the first day of their employment. If the employment does not start on the first day of a month, the contributions payable for that month should be based on the employee's actual wages up to the end of the month. The employee's share of the contributions is recovered through deductions from the employee's wages. This occurs when wages are paid out.

If the employer fails to recover the money then, and the error was not due to his negligence, he can still do so provided:
	He has paid contributions to the fund, and
	He has either obtained the employee's written consent for the recovery and has forwarded the consent to the Board, or obtained the written permission of the Board for the recovery.

This must be done not later than 6 months from the time the contributions should have been recovered.

CPF FOR EMPLOYEES

Definition of an Employee An 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:

Company Directors
Salaried directors of any company are considered employees if they are engaged under a contract of service and paid a salary on top of fees received. CPF contributions are not payable on directors' fees voted to them at general meetings.

Part-time/ Casual Employees
CPF contributions are payable for part-time/ casual employees whose wages exceed $50 a month. CPF contributions are also payable for all school-leavers or students working on a part-time or temporary basis, except for the following groups:

Students working during their gazetted school holidays,

Tertiary students on full-time industrial attachment, and

Tertiary students employed under a training programme approved by their institutions.

National Service (Reservist in-camp training)
U nder the Enlistment Act, CPF is payable for national servicemen on reservist service. The employer has to pay the CPF contributions on the wages given by MINDEF. The employee's share of contributions can be recovered from the employee's wages.

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 $6,000, CPF contributions are payable based on the normal rates.

However, if the employee's combined monthly income exceeds the CPF salary ceiling of $6,000, the employee may apply to the Board to limit the total of his share of contributions on Ordinary Wages (but not Additional Wages) as follows:

*Age*	*Limit on Ordinary Wages (Employee's share)*
55 years and below	$1,200
Above 55 to 60 years	$ 750
Above 60 to 65 years	$ 450
Above 65 years	$ 300

The letter, addressed to the Employer Registration Branch, should indicate:

Amount of wages,

Employee's share of CPF, and

Amount of CPF to be paid through each employer.

The employers have to continue to pay their share of CPF contributions without any limits.

Singapore Permanent Residents (PRs)
CPF contributions are payable for foreigners who become Singapore Permanent Residents.

If the employer and employee have not been making any mandatory CPF contributions before the conversion, they will be required to contribute at reduced rates in the first two years. (Please see Annexes C and D for the contribution rates.)

The employer and employee can jointly apply to the Board to contribute CPF at the full rates if both parties agree to do so. Such contributions will be tax-deductible. However, this application is not reversible i.e. the employee will not be able to revert back to the reduced rates even if he changes employment.

EXCEPTIONS TO PAYMENT OF CPF FOR EMPLOYEES

a.	*Foreigners on Employment Pass, Professional Visit Pass or Work Permit* Employers are exempted from making mandatory CPF contributions for new foreign employees on an Employment/ Professional Visit Pass or Work Permit.

b.	*Partners, Sole Proprietors and the Self-employed* Any persons registered as partners, sole proprietors and self-employed and earning more than $2,400 a year need to contribute a percentage of their net trade income to their Medisave Account. The Medisave contribution rate is 6-8%, depending on their age group, and is subject to a yearly income ceiling of $72,000. Payment is made using "CPF/ Medisave Contribution Form for Self-Employed" (Form CPF SE 2).

c.	*Employees Working Overseas* CPF contributions are not payable for Singapore employees who work overseas. However, if both the employer and the employee continue to make CPF contributions while the employee is posted overseas, the employer may continue to use the CPF Payment Advice (CPF Form 91) with the same Employer Reference Number to submit the payment details. If the employer chooses not to pay CPF contributions for the employee working abroad, the same employee may still choose to make voluntary CPF contributions. This employee is required to write in to the Board to register and pay, like any new employer. (Please see Page 04, Registration of New Employer.) He can choose to contribute any amount he wishes. Should the employee posted overseas wish to make a one-off contribution instead of paying on a monthly basis, the employee need not register with the Board. He only needs to write in to the Board and send in a cheque with the amount of his choice. Upon his return to Singapore, he must notify the Board in writing, and his employer is required to start paying CPF again. This also applies to employers who have been paying CPF voluntarily during the employee's overseas posting.

COMPUTATION OF CPF

Definition of Wages
CPF contributions are computed based on the employee's wages. Under the CPF Act, wages is 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.

For the purpose of computation, "wages" is 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).

The maximum CPF amount payable on Ordinary Wages is $1,800 a month, based on Ordinary Wages of $6,000 a month.

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. (For the maximum CPF payable on Additional Wages, Annex E.)

Total Wages
The total amount of an employee's wages for any calendar month means 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 on 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 ABC pays its employees wages every week. Computation of CPF for the month of September 1999 are based on the wages from 1 to 30 September; i. e. wages for 29 to 31 August for the first week and 1 to 2 October for the last week are excluded.

SEPTEMBER 1999

Sun	Mon	Tues	Wed	Thur	Fri	Sat
29	30	31	1	2	3	4
5	6	7	8	9	10	11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	29	30	1	2

Calculating CPF on Additional Wages (Additional Wage Ceiling)

Additional Wage Ceiling
Since 1 January 1990, there is an Additional Wage Ceiling on the wages of employees who earn more than $100,000 a year in Total Wages. This ceiling is the maximum amount of Additional Wages on which CPF is payable. (Annex E, "Calculating Additional Wage (AW) Ceiling".)

Year-End Adjustment
If the employee's Total Wage exceeded $100,000 in the preceding year with the same employer, employers may, as a guide:

Use the preceding year's Additional Wage Ceiling for payment of CPF on Additional Wages.

Make year-end adjustment when the current year's Additional Wage Ceiling is known, and

Pay the shortfall (if any) together with December's contributions.

Change Of Employment

When an employee starts employment
For a new employee who joins your employment during the year:

Pay the contributions on Additional Wages in full.

Calculate the Additional Wage Ceiling at the end of the year, based on his wages earned under your employment in the current calendar year, or

Claim the excess contributions (if any) by submitting the refund application form, ES/ CAPR, to the Refund Admin Section.

ii)

When an employee resigns
If your employee resigns in the current year:

Calculate the Additional Wage Ceiling based on the few months of employment during the current year.

Pay the shortfall (if applicable) together with the employee's contribution for his last month of employment, or

Claim the excess contributions (if applicable) by submitting the refund application form, ES/ CAPR, to the Refund Admin Section.

Change In Age Group
If there is a shortfall in CPF contributions on Additional Wages (due to year-end adjustments) and the employee has reached the next age group during the year, the rate to be applied 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.

Concurrent Employment
Employers who have employees working for more than one employer will have to pay the CPF (employer's and employee's share) on Additional Wages as if the employee is in single employment.

For the employer:
Each employer may limit his share of contributions on Additional Wages based on the Additional Wage Ceiling, only if the Total Wages paid to the employee in the individual employment exceeds $100,000.

The excess employer's share of CPF contributions (if any) may be refunded to the employer on receipt of sufficient information by the CPF Board.

ii)

For the employee:
If the employee's combined wages from all his employers exceed $100,000 for the year, he may write in to the Board to limit the total of his share of contributions on Additional Wages. The limit is based on the Additional Wage Ceiling. The excess employee's share of CPF contributions (if any) will be refunded to him if it is approved.

Excess Contributions Paid on Additional Wages
The Board will refund any excess contributions paid if sufficient information is provided by the employer. If there is no application received by the Board within 6 months from the end of the calendar year, the excess contributions paid will be treated as voluntary contributions to the employee's CPF account. The application form can be obtained from any CPF office.

Application for refund of CPF contributions paid in excess is only applicable to employers and employees paying compulsory contributions. This must be submitted after the end of the calendar year when Total Wages are known.

For employees who have already resigned, the application for refund may be submitted in the current year, together with a copy of the employee's resignation letter.

For enquiries, please contact Refund Admin Section at 229803 / 229805.

	6.	*REFUND OF CONTRIBUTIONS PAID IN ERROR*

		Employers who may have inadvertently paid more CPF than required may apply for a refund within one year from the date of payment. Applications must be made using ES/ Form 40 and ES/ Form 40A, available from any CPF office.

7.	*ENFORCEMENT OF CPF CONTRIBUTIONS*

	a.	Grace Period CPF contributions are part of employees' wages and must be paid promptly. The grace period for the payment of CPF contributions is 14 days after the end of the month for which such contributions are due and payable. If the due date falls on a Sunday or Public Holiday, CPF contributions must be paid by the next working day.

	b.	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 Employer Services Officers. A notice is sent by registered post to these employers informing them that legal action will be taken unless CPF contributions, penalty interest and compound fines are paid within the notice period. Employees whose contributions are not paid are 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, penalty interest and a court fine.

		Step 3: Conviction If the employers still do not pay up, then a Warrant is issued to seize and sell the company's assets. Bankruptcy or winding up proceedings may also be instituted against employers. However, this will only be done as the last resort.

	c.	Industry Surveys The Board also conducts spot checks on various industries to determine the level of compliance. Such checks involve inspecting an employer's wage records for the past 6 years. If the employer is found to have underpaid or omitted to pay contributions, the arrears for the 6-year period, plus penalty interest will be computed and recovered.

	d.	Interest on Late Payment Interest on late payment is calculated daily at the rate of 1.5% per month, starting from the 1st day of the month following the month in which the contributions are payable. The minimum interest payable is $5 per month.

	e.	Keeping the Employees Informed A 6-monthly Statement of Account is sent to all employees. Employees are advised to check their own Statement of Account to ensure that their employer has paid their CPF contributions correctly. If contributions are not paid, employees should inform the Board so that their CPF contributions may be recovered.

8.	*MODE OF SUBMITTING CONTRIBUTION DETAILS*

	Employers may use any of the following methods to submit their CPF contribution details. In line with the Government's efforts to promote electronic transactions, employers are strongly encouraged to submit their contribution details electronically.

	a.	CPF/IRAS Line This is an electronic service which enables businesses to submit their CPF contribution details, GST or even income tax returns, using one system. Suitable for employers with more than 100 employees, the system offers the following:
			Convenience as contribution details are captured in the personal computer and sent via Singapore Network Services (SNS),
			24-hour service daily, so information can be updated and transmitted anytime,
			Timely payment through GIRO, and
			Electronic Record of Payment for safekeeping.

	Registration with SNS and a one-time registration fee of $100 is required if the employer is not using any SNS network. There is also a monthly fee of $20 to maintain an electronic mailbox to deposit payment information, and a yearly software licence fee of $150.

	For more information, please call:
	SNS : 775 5977 CPF Board : 1800-226 3877 IRAS : 1800-356 8633

	b.	CPF PAL-Internet (Employer Returns) This facility is available round the clock at the Board's website. Payment is by GIRO. Employers can choose to use either the online form or the file transfer service to submit their contribution details.

		i)	*Online form* This is recommended for employers without a payroll system and who have less than 50 employees. All the employer needs to do is:

			Update the details on the online form,
			For subsequent submissions, retrieve the details of the last submission as a template and make the necessary amendments, and
			Transmit the form.

		*ii)*	*File transfer service* Recommended for employers with payroll systems, the employer need only

			Extract the information from the payroll system, and
			Transmit it across as a electronic file.

			To use the service,
			Complete and submit the registration form for the Employer Returns service with the Board,
			Apply for a Netrust Card for each staff using the service through the Board, and
			Apply for a GIRO Account with the Board.

			The Netrust application form, registration and GIRO forms are available at the Board's website and all CPF offices.

	c.	CPF Payment Forms Employers using the manual payment forms to submit their contribution details must complete and return the following forms together:

			Payment Advice (Form CPF 91), giving details of the CPF contributions payable.
			Continuation forms for Payment (Form CPF 91A), if the employer has more than five employees.
			New Employee Contribution Form (Form CPF 92), if the employer is paying CPF contributions the first time for his new employee.

	In the event that the employer misplaces these forms, he must bring along a letter of authorisation and the identity card of the authorised person to obtain a fresh form. The Record of Payment (Form CPF 90) will be sent once the contribution details have been received, and payment processed. The payment form for the following month's submission will be enclosed together with the Record of Payment. Employers are advised to check their Record of Payment and inform the Board immediately of any inaccuracy in their payment record. The Record of Payment should be kept by the employer for future reference. Employers who have misplaced their payment records and want previous records from the Board will have to pay for the service.

9.	*MODE OF PAYMENT*

	CPF contribution details must be submitted together with CPF payments. Payment may be made in the following manner:

	a.	*Inter-bank GIRO* GIRO offers the most convenient option for employers who do not want to look around for any signatories at all. Just complete and return the Direct Debit Authorisation (DDA) form to the Board, who will send it to their bank for processing. The DDA form authorises the employer's bank to deduct the monthly CPF contributions from his bank account. The amount deducted is based on the contribution details submitted by the stipulated date.
	*Standing Instructions* Small employers (1-10 employees) whose CPF contributions do not vary from month to month can give a one-time standing instruction to the Board to pay a fixed amount for their employees every month. All they need to do is:
		Complete and return the Standing Instructions (SI 1/ GIRO) form,
		Complete the Direct Debit Authorisation (DDA) form, and
		Submit the 2 forms together to the Board.

	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 Instructions form. This will supercede any previous instructions given. For additional payments such as bonuses and leave pay, the employer need only submit a payment advice giving the contribution details for the additional payments. He need not submit a new Standing Instructions form. The additional payment will also be deducted through GIRO.

	b.	*System for Handling Inter-bank Funds Transfer (SHIFT)* This is for employers whose contributions vary from month to month. Just:
			Complete an authorisation form from the bank,
			Get it signed by the company signatories, and
			Return it to the bank.

		The form authorises the bank to transfer the company's funds to the CPF Board's bank account, and must be completed every month.

	c.	*Cheques* Cheques should be crossed and made payable to the CPF Board. The reverse side of each cheque must bear the employer's reference number. Cheques marked "non-transferable" or where the word "only" appears after the payee's name will be rejected. Cheque payments may also be made at CPF branch offices. These offices, however, do not collect cash payments.

	d.	*Cash* Cash payment can be made at any Post Office or at the Board's Main Office (79 Robinson Road, Singapore 068897). A temporary receipt will be given for cash payments at the Post Office. Please do not send cash through the post.

	*10.*	*EMPLOYER SERVICES*

		Support Services Employers can seek assistance from the CPF Board's Employer Services Department which provides a wide range of services to employers. For the convenience of employers, various branch offices have also been set up at Bishan, Bukit Timah, Jurong East and Tampines. Employer News Employers can get up-to-date information in the Employer News, a newsletter published in 4 languages in the major news dailies, 3-4 times a year. Employer Classroom Employers and their payroll staff can access the " Employer Classroom", which is an online training module, at the Board's website, www. cpf. gov. sg. They can learn about CPF matters at their own pace and convenience.

11.

AGENCY SERVICES

The CPF Board is also the collecting agent for the following:

Foreign Worker Levy

Skills Development Levy

Mosque Building and Mendaki Fund

SINDA Fund

CDAC Fund

Eurasian Community Fund

Share Programme Donations

Note
Payment is made together with the CPF contributions, using the CPF payment advice. Employers should indicate in the payment form if the employees are contributing to any of the above. This should be accompanied with the appropriate payment.

Foreign Worker Levy (FWL)
The Foreign Worker Levy is the main pricing mechanism to control the size of the pool of foreign workers in Singapore. An employer who is liable to pay the levy for his foreign workers is not required to pay CPF contributions for such workers.

However, if a work permit holder on the FWL Scheme is granted Permanent Resident (PR) status, he will be placed on the CPF scheme. This will take effect from the day he is granted PR status. (Please see Page 06, Singapore Permanent Residents.)

Mode of Payment
Payment of the levy can be made together with payment of the CPF contributions, using the CPF Board's Payment Advice.

Grace Period for Payment
The grace period for the payment of levy is 14 days after the end of the month for which the levy is due and payable.

Late Payment of Levy
Late payment of the levy is calculated at the rate of 2% per month or $5, whichever is greater. Penalty is calculated on a daily basis starting from the first day of the month following the month for which the levy is payable.

Work Permit Cancellation
The employer must return his worker's work permit to the Work Permit Department 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 uncancelled.

For more details, please contact the Work Permit Department at 1800-438 5122.

Refund of Levy Paid in Error
If the levy has been paid in excess, employers may apply to the CPF Board for a refund. The claim must be made within one year from the date of payment. To apply for a refund,

Write in or use the prescribed form (ES/ FWL/ 7) available from the Foreign Worker Levy Section of the CPF Board, and

Submit it together the relevant documents (i. e. receipt of payment and cancellation letter from the Work Permit Department, if applicable).

Skills Development Levy (SDL)
The CPF Board collects this on behalf of the Singapore Productivity and Standards Board. Employers are required to pay the levy for each employee (local and foreign) whose monthly remuneration* is $1,000 (from 1 April 1995) or less. This is at the rate of 1% of the remuneration or $2, whichever is greater.

For employees whose gross salary is below $200 per month, the minimum SDL of $2 is still payable, even if the employee only works part of the month.

Remuneration means any wage, salary, commission, bonus, leave pay, overtime pay, allowances (including housing or other like allowance) and other emoluments paid in cash.

Example:

Employee	Gross Monthly Salary (GMS)	SDL Payable (1% of GMS)
A	$740	$7.40
B	$650	$6.50
C	$570	$5.70

Total SDL payable is $19. Any cents calculated should be ignored for total SDL payable.

The SDL collected is channelled into the Skills Development Fund, which provides grants to companies sending their workers for training.

Mosque Building and Mendaki Fund (MBMF)
An employer of a Muslim worker is required to deduct the following amount from the employee's monthly wages as contributions to this Fund. These rates are graduated according to the income group of the employee as follows:

Gross Monthly/Month	Minimum
Less than $1,001	$2.00
$1,001 to $3,000	$3.00
More than $3,000	$5.00

NB : An employee whose salary for a particular month is less than $200 need not contribute to the Fund

Gross income includes basic salary and any other allowances which are CPF payable.

SINDA Fund
All working Indians [including the following groups with ethnic origins in the Indian sub-continents such as Bangladeshi, Bengali, Goanese, Gujarati, Indian, Malayalee, Pakistani, Parsee, Punjabi, Sikh, Sinhalese, Sri Lankan (Ceylonese), Tamil and Telugu in Singapore are required to contribute monthly to the SINDA (Singapore Indian Development Association) 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

NB : Foreign workers on Foreign Worker Levy Scheme need not contribute to the Fund

The prescribed amounts will be automatically deducted from the wages of the employees. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from SINDA and submit them to their employers.

CDAC Fund
All working Chinese Singaporeans and Permanent Residents may contribute monthly to the Chinese Development Assistance Council (CDAC) Fund, according to the wage levels below:

Wage Level	Minimum Monthly Contribution
Less than $2,000	$0.50
$2,000 o 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 relevant forms from CDAC and submit them to their employers for endorsement before forwarding them to the CDAC.

Eurasian Community Fund
All working Eurasian Singapore citizens and Permanent Residents may contribute monthly to the Eurasian Community Fund (ECF), according to the wage levels below:

Wage Level	Minimum Monthly Contribution
Up to $1,000	$2.00
Above $1,000 - $1,500	$4.00
Above $1,500 - $2,500	$6.00
Above $2,500 - $4,000	$8.00
Above $4,000	$10.00

The prescribed amounts will be automatically deducted from the wages of Eurasian employees. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from the Eurasian Association.

SHARE Programme Donations
The CPF Board collects SHARE (Social Help and Assistance Raised by Employees) donations on behalf of the Community Chest, National Council of Social Service. Donations by the employees are voluntary and deducted from the employees' wages.

	*12.*	*ENQUIRY SERVICES*

		Enquiries on Employer Services For more information, please call: CPF contributions/ Employer registration/ Electronic submissions
		1 800-226 3877

		Foreign Worker Levy
		1800-226 2443

		Or e-mail to
		Employer@cpf.stems.com


		Enquiries on Agency Services For more information, please call: Foreign Worker Levy (FWL) Ministry of Manpower Work Permit Department 18 Havelock Road Singapore 059764 Tel: 538 3033 Registry of Companies and Business (RCB) 10 Anson Road #05-01/ 15 International Plaza Singapore 079903 Tel: 1800 -222 6266 Skills Development Levy (SDL) Singapore Productivity and Standards Board 17th Floor PSB Building 2 Bukit Merah Central Singapore 159835 Tel: 278 4466 Mosque Building and Mendaki Fund (MBMF) Majlis Ugama Islam Singapura 273 Braddell Road Singapore 579702 Tel: 359 1141 Singapore Indian Development Association (SINDA) No 1 Beatty Road Singapore 209943 Tel: 298 5911 Chinese Development Assistance Council (CDAC) CDAC Building 65 Tanjong Katong Road Singapore 436957 Tel: 841 4889 Eurasian Community Fund (ECF) Eurasian Association 715/ 717 Mountbatten Road Singapore 437737 Tel: 447 1578 Share Programme Community Chest National Council of Social Services 11 Penang Lane Singapore 238485 Tel: 336 1544


		Annex A

	ALLOWANCES AND CPF The table below is a general guide as to when CPF is payable on allowances.

Type of Payment	Description	CPF Payable
Anniversary Cash Award	Payment to employees on company’s anniversary	Yes
Annual Wage Supplement/ Bonus year	Payment to employees at the end of the financial	Yes
Attendance Allowance	Payment for good work and attendance	Yes
Commission	Payment to employees based on percentage of sales achieved	Yes
Cost of Living Allowance	Payment as part of employee’s wages	Yes
Education Allowance	Contractual payment for education of employee’s children	Yes
Education Allowance	Payment made under employee’s self-improvement programme	No
Entertainment Allowance	Reimbursement for entertaining company’s clients	No
Extra Duty Allowance	Payment made for extra work done; e.g. night duty, overtime, public holiday, acting allowance etc.	Yes
Festival Allowance	Cash gift (e.g. hongbao) exceeding $50 given to employees during festive season	Yes
Finders Introduction Fees	Payment to employees for introducing workers to company	No
Gratuity	Payment to employees for good service while still in employment	Yes
Gratuity	Payment to employees upon termination of employment No i. e. compensation in nature	No
Grooming Allowance	Payment to employees for enhancement of appearance	Yes
Holiday Allowance	Fixed payment to employees for vacation	Yes
Holiday Allowance	Variable sum given as reimbursement for holiday expenses incurred by employees	No
Housing Allowance	Payment to employees as housing rent	Yes
Housing Allowance	Forms part of the employer's expenditure and paid directly to third party e. g. landlord	No
Incentive Allowance	Cash payment incentive	Yes
Incentive Allowance	Incentive in kind e. g. token gifts	No
Laundry Allowance	Reimbursement for laundry expenses to uniformed employees	No
Leave Pay	Payment in lieu of leave	Yes
Long Service Award	Cash award for long service	Yes
Long Service Award	Payment to employees with at least 10 years' service and only once in their career	No
Maternity Allowance	Payment to female employees during confinement and in addition to monthly salaries	Yes
Maternity Subsidy	Reimbursement paid under company's maternity expenses scheme	No
Meal Allowance	Monthly lump sum payment to employees	Yes
Meal Allowance	Reimbursement for staying beyond working hours, i.e. overtime	No
Handphone & Pager Allowance	Fixed payment or reimbursement given to employees	Yes
Handphone & Pager Allowance	Forms part of the employer's expenditure & paid directly to third party e.g. service provider	No
Personal Clothing Allowance	Payment to employees to enhance appearance	Yes
Probation Period Pay	Wages for employees on probation	Yes
Productivity Award	Cash award for staff productivity	Yes
Productivity Award	Award in kind e.g. token gifts	No
Sales Performance Award	Payment for attaining sales target	Yes
Service Charge	Collection by hotels/restaurants and distributed as part of wages to employees	Yes
Staff Welfare Benefits	Gifts in kind to employees on their marriage or birth of their children	No
Stand-by Allowance	Payment for stand-by duties	Yes
Termination Benefits	Retirement gratuity, retrenchment pay, ex-gratia payment, salary in lieu of notice, severance pay, compensation for loss of employment	No
Termination Benefits	Payment of temporary lay-off benefits	Yes
Tips	Cash collected from customers to augment wages of hotel and restaurant employees	Yes
Transport Allowance	Payment to subsidise employees’ transport expenses	Yes
	Reimbursement for travel in the line of official duty	No
	Reimbursement for travel between home and workplace beyond normal working hours e.g. rest days and public holidays	No
	Reimbursement for travel from home/office to the place of assignment (not the normal place of work)	No
	Reimbursement for actual transport expenses where the employer is obliged to provide transport for employees and where the transport is not available	No
Workmen's Compensation	Payment awarded for injuries under the Workmen’s Compensation Act	No


Annex B

CONTRIBUTION RATES FOR EMPLOYEES WHO ARE SINGAPORE CITIZENS (FROM 1 JANUARY 1999)

AGE OF EMPLOYEE
	55 yrs and below		Above 55-60 yrs		Above 60-65 yrs		Above 65 yrs
Employee's total wages	Contributions payable by the employer for the calendar month	Amount recoverable from the employee's wages for the calendar month
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Not more than $50	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
More than $50 but less than or equal to $200	10% of the employee's total wages for the month	Nil	4%	Nil	2%	Nil	2%	Nil
More than $200 but less than or equal to $363	a. 15% of the employee's total wages for the month; and	a. 5% of the employee's total wages for the month; and	4%	Nil	2%	Nil	2%	Nil
More than $200 but less than or equal to $363	b. 1/3 of the difference between the employee's total wages for the month and $200.	b. 1/3 of the difference between the employee's total wages for the month and $200.	1/4	1/4	1/6	1/6	1/9	1/9
Over $363	a. 30% of the employee's ordinary wages for the month up to $1,800; and	a. 20% of the employee's ordinary wages for the month up to $1,200; and	16.5% max $990	12.5% max $750	9.5% max $570	7.5% max $450	7% max $420	5% max $300
Over $363	b. 30% of the total additional wages payable to the employee in the month	b. 20% of the total additional wages payable to the employee in the month	16.5%	12.5%	9.5%	7.5%	7%	5%

NB : The rates in columns 2, 4, 6, and 8 represent the amounts payable by the employer in the first instance. The rates in columns 3, 5, 7, and 9, represent the amounts that are recoverable from the employee’s wages.


Annex C

CPF Contribution Rates For Permanent Residents (PRs) During 1st Year of Obtaining PR Status (From 1 January 1999)

AGE OF EMPLOYEE
	55 yrs and below		Above 55-60 yrs		Above 60-65 yrs		Above 65 yrs
Total amount of the employee's wages for the calendar month	Contributions payable by the employer for the calendar month	Amount recoverable from the employee for the calendar month
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Not exceeding $50	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Exceeding $50 but not exceeding $200	2.5% of the employee's total wages for the month	Nil	2.5%	Nil	2%	Nil	2%	Nil
Exceeding $200 but not exceeding $363	a. 4.5% of the employee's total wages for the month; and	a. 2% of the employee's total wages for the month; and	2.5%	0%	2%	0%	2%	0%
Exceeding $200 but not exceeding $363	b. 1/15 of the difference between the employee's total wages for the month and $200	b. 1/15 of the difference between the employee's total wages for the month and $200	1/9	1/9	1/9	1/9	1/9	1/9
Exceeding $363	a. 7.5% of the employee's ordinary wages for the month up to $450; and	a. 5% of the employee's ordinary wages for the month up to $300; and	7.5% max $450	5% max $300	7% max $420	5% max $300	7% max $420	5% max $300
Exceeding $363	b. 7.5% of the total additional wages payable to the employee in the month	b. 5% of the total additional wages payable to the employee in the month	7.5%	5%	7%	5%	7%	5%

1.	The rate of contributions payable by the employer is shown in columns 2, 4, 6, and 8 while columns 3, 5, 7, and 9 indicate the contributions recoverable from the employee.
2.	For employees in the above 55 to 60, above 60 to 65 and above 65 age groups, simply replace the figure underlined in columns 2 and 3 with the corresponding figures in columns 4 to 9.


Annex D

CPF Contribution Rates For Permanent Residents (PRs) During 2nd Year of Obtaining PR Status (From 1 January 1999)

AGE OF EMPLOYEE
	55 yrs and below		Above 55-60 yrs		Above 60-65 yrs		Above 65 yrs
Total amount of the employee's wages for the calendar month	Contributions payable by the employer for the calendar month	Amount recoverable from the employee for the calendar month
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Not exceeding $50	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Exceeding $50 but not exceeding $200	7.5% of the employee's total wages for the month	Nil	4%	Nil	2%	Nil	2%	Nil
Exceeding $200 but not exceeding $363	a. 13.5% of the employee's total wages for the month; and	a. 6% of the employee's total wages for the month; and	4%	0%	2%	0%	2%	0%
Exceeding $200 but not exceeding $363	b. 1/5 of the difference between the employee's total wages for the month and $200	b. 1/5 of the difference between the employee's total wages for the month and $200	1/4	1/4	1/6	1/6	1/9	1/9
Exceeding $363	a. 22.5% of the employee's ordinary wages for the month up to $1,350; and	a. 15% of the employee's ordinary wages for the month up to $900; and	16.5% max $990	12.5% max $750	9.5% max $570	7.5% max $450	7% max $420	5% max $300
Exceeding $363	b. 22.5% of the total additional wages payable to the employee in the month	b. 15% of the total additional wages payable to the employee in the month	16.5%	12.5%	9.5%	7.5%	7%	5%

1.	The rate of contributions payable by the employer is shown in columns 2, 4, 6, and 8 while columns 3, 5, 7, and 9 indicate the contributions recoverable from the employee.
2.	For employees in the age groups above 55 to 60, above 60 to 65 and above 65, replace the figure underlined in columns 2 and 3 with the corresponding figures in columns 4 to 9.
3.	The contribution rates for PRs during 3rd year of PR status is the same as the rates for private sector employees.
4.	The second and third year rates are payable on the anniversary of the employee's conversion to a Permanent Resident. E.g. if the employee became a Singapore Permanent Resident on 15 May 1998, the second and third year rates will apply from 1 June 1999 and 1 June 2000 respectively.


Annex E

	Calculating Additional Wage (AW) Ceiling

(1)

For an employee whose Total Wages (TW) exceed $100,000 and Total Ordinary Wages (TOW) is less than or equal to $72,000, the Additional Wage Ceiling is $100,000 minus Total Ordinary Wages (TOW).

For example:

TOW	=	$60,000
Additional Wages for Feb, Jul and Dec	=	$50,000
TW	=	$60,000 + $50,000
	=	$110,000
Additional Wage Ceiling	=	$100,000 - $60,000 (TOW)
(Additional Wages for which CPF is payable)	=	$40,000

The table below shows how CPF contributions on the Additional Wages are calculated for an employee whose Additional Wage Ceiling is $40,000:

(1)	(2)	(3)	CPF Contributions on Additional Wages
Month	Additional Wages Paid	Additional Wage Ceiling (= $40,000)	(4) Amount Paid *30% of (2)	(5) Amount Payable *30% of (3)	(6) Excess CPF Paid (4) - (5)
Feb	$20,000	$20,000	$6,000	$6,000	-
Jul	$15,000	$15,000	$4,500	$4,500	-
Dec	$15,000	**$5,000	$4,500	$1,500	$3,000
Total	$50,000	$40,000	$15,000	$12,000	$3,000

*Assumption:	Employee is below 55 years old and CPF contribution rate is 30%.*

** Note :	The amount of Additional Wage on which CPF is payable for the month of December is calculated as follows: $40,000 (Additional Wage Ceiling for the year) – $20,000 (AW for Feb) – $15,000 (AW for Jul) = $5,000

(2)

For an employee whose Total Wages (TW) exceed $100,000 and Total Ordinary Wages (TOW) are more than $72,000, the Additional Wage Ceiling is 40% of Total Ordinary Wages (TOW).

Important Note : The 40% here is a standard formula, and not the CPF contribution rate.

Example:

TOW	=	$80,000
Additional Wages for Feb, Jul and Dec	=	$50,000
TW	=	$80,000 + $50,000
	=	$130,000
Additional Wage Ceiling	=	40% of $80,000 (TOW)
(Additional Wages for which CPF is payable)	=	$32,000

The table below shows how CPF contributions on the Additional Wages are calculated for an employee whose Additional Wage Ceiling is $32,000:

(1)	(2)	(3)	CPF Contributions on Additional Wages
Month	Additional Wages Paid	Additional Wage Ceiling (= $32,000)	(4) Paid *30% of (2)	(5) Payable *30% of (3)	(6) Excess (4) - (5)
Feb	$20,000	$20,000	$6,000	$6,000	-
Jul	$15,000	**$12,000	$4,500	$3,600	$900
Dec	$15,000	-	$4,500	-	$4,500
Total	$50,000	$32,000	$15,000	$9,600	$5,400


*Assumption:	Employee is below 55 years old and CPF contribution rate is 30%.

** Note :	The amount of Additional Wage on which CPF is payable for the month of July is calculated as follows: $32,000 (Additional Wage Ceiling for the year) Ð $20,000 (AW for Feb) - $12,000


Annex F

Foreign Worker Levy Rates (from 1 January 1999)

Type of foreign worker

Levy per month for each worker

Levy for part-month employment

Domestic

$345

$12 per day, up to $345 a month

Construction
1.	Skilled
2.	Unskilled

$30

$470

$1 per day, up to $30 a month

$16 per day, up to $470 a month

Manufacturing
1.	Up to 40% of total workforce
2.	Between 40% to 50% of total workforce
3.	Skilled

$240

$310

$30

$8 per day, up to $240 a month

$11 per day, up to $310 a month

$1 per day, up to $30 a month

Marine
1.	Skilled
2.	Unskilled

$30

$295

$1 per day, up to $30 a month

$10 per day, up to $295 a month

Harbour Craft
1.	Skilled
2.	Unskilled

$30

$240

$ 1 per day, up to $30 a month

$8 per day, up to $240 a month

Conservancy
1.	Skilled
2.	Unskilled

$30

$350

$1 per day, up to $30 a month

$12 per day, up to $350 a month

Process Industry
1.	Skilled
2.	Unskilled
3.	Workers with suitable work experience & qualification

$30

$350

$240

$1 per day, up to $30 a month

$12 per day, up to $350 a month

$8 per day, up to $240 a month

Grass-cutting
1.	Skilled
2.	Unskilled

$30

$350

$1 per day, up to $30 a month

$12 per day, up to $350 a month

Service
1.	Skilled
2.	Unskilled

$30

$240

$1 per day, up to $30 a month

$8 per day, up to $240 a month