Why is composition amount imposed on employers or platform operators?

It is an offence under the CPF Act for late and/or non-payment of CPF contributions and late payment interest. The composition amount is offered to allow defaulting employers or platform operators to settle their CPF offences out of court, after settling the CPF arrears.

 

Prosecution actions will be taken against employers or platform operators who do not settle the CPF arrears and compound the offence out of court, before the deadline given.