What should I do if I am unable to pay my employees their CPF contributions on time?

It is the employer’s obligation to ensure that CPF contributions are paid on time and to communicate the CPF contributions payment dates to your employees. Your employees have the right to check with you on the non-payment of their CPF contributions, including asking for an explanation and when you will be making payment. CPF contributions are important to employees for their housing, healthcare and retirement needs. Information on the payment date and amount of CPF contributions will help them to manage their financial needs and commitments.

If you are unable to pay your employees their CPF contributions on time, you have to ensure that the CPF arrears are paid as soon as possible and that the CPF contributions are accorded priority amongst the company’s outstanding payments. You should also inform your employees beforehand the reasons for being late and when they can expect the payment.

CPF Board takes a serious view of employers who default on CPF contributions. The due date for CPF contributions is on the last day of the calendar month. Enforcement action would be taken against employers who fail to pay by the 14^th of the following month (or the next working day if the 14^th falls on a Saturday, Sunday or Public Holiday). This includes imposing late payment interest charged at 1.5% per month commencing from the first day after the due date.

Find out more on your obligations as an employer under the CPF Act and the Employment Act at the Workright website.

This information provided here is sourced from the CPF website.