The due date for CPF contributions is on the last day of the calendar month. Enforcement action would be taken if CPF contributions are not paid 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. The minimum interest payable is $5.

 

 

XYZ Company made a CPF contribution of $3,000 for the month of October on 20 November. This payment is late by 19 days. Therefore, the amount of late payment interest will be:

 

= $3,000 x 1.5% x 19/30 (stop at the fourth decimal)*

 

= $28.50

 

*Number of days the payment is late/number of days in the month.

 

The final figure is to be rounded down to the nearest dollar, i.e. the cents should be dropped for the interest. Hence, the late payment interest payable will be $28.