Under the Enlistment Act, CPF contributions are payable for your employees who are Operationally Ready National Servicemen (NSmen) during their NS training, based on their usual civilian income.

You have to pay CPF contributions based on the total wages typically payable to them in each calendar month, as though they are not away for NS training. Besides basic salary and fixed allowance components of your employee’s wages, the variable allowances (e.g. overtime pay and allowances) typically paid to the NSman on a monthly basis would also attract CPF contributions.

You have to bear the full employer's share of CPF contribution, and you are entitled to recover the full employee's share from their wages. These CPF contribution obligations remain the employer's responsibility whether the employer is registered with the DIRECT* scheme, and are not eligible for reimbursement from the Ministry of Defence.