With the additional step to split the service fee under Contribute As You Earn (CAYE), would this result in a delayed payment of service fee that may exceed the credit terms?

Under PACE (PayNow for CAYE), please submit the payment file to OCBC at least five working days before the service fee is due, to ensure timely payment. This is because the earliest corporate payment value date that you can select will be one working day from the date of file transmission to OCBC using FAST. Using GIRO, it will take two working days for funds to be credited to the CAYE bank account from the date of file transmission to OCBC. Thereafter, it will generally take four working days for the CAYE contribution to be deposited into the SEP’s MediSave account.

(Note: If the service fee payment to the SEP exceeds $200,000, the payment will be rejected and the full service fee payment minus $0.55 per transaction as a rejection fee will be returned to the corporate service buyer’s PayNow-registered bank account.)

Please refer to this document for the illustration of the PACE (PayNow for CAYE) process.

If you are using the online submission mode (DDA mode) to make payments, please log into the CAYE Digital Services at least four working days before the service fee is due to ensure timely payment. This is because the earliest deduction date that you can select will be two working days later (if the submission was made before 5pm). Payment to SEP will generally take up to two working days from the date of deduction.

Please refer to this document for the illustration of the digital submission mode process.

This information provided here is sourced from the CPF website.