Do you plan to hire your first employee? The following are 5 things new employers should know about CPF contributions:
1) CPF Submission Number
Paying CPF contributions on wages paid to local employees (Singapore citizens or Singapore permanent residents) is mandatory. You must first register your business as an employer by obtaining a CPF Submission Number (CSN).
2) CPF contribution due date
The CPF contribution for the month needs to be paid by the 14th of the following month. CPF Board will charge late interest on CPF payments made after the due date.
3) Contribution to Self-Help Group
Contributions to self-help groups (SHGs) should be made together with CPF contributions for your employees. Contributions to SHGs are mandatory for all local employees. Members of the Indian community (except those on the Foreign Worker Levy (FWL) scheme) or Muslims need to contribute to their respective SHGs.
4) Skill Development Levy
Employers also need to pay Skill Development Levy (SDL) for all employees working in Singapore. This includes both local and foreign employees. You can pay SDL for your employees together with the monthly CPF contributions.
5) Foreign Worker Levy
The Foreign Worker Levy (FWL) applies to foreign employees who hold work permits or S Passes. For foreign employees with Employment Passes (E Passes), FWL is not required. FWL payments will be deducted from your account every month via GIRO.
Keeping up with CPF requirements will prevent late penalties. We are available to assist you in computing the various contributions and running your payroll each month. Just drop us an email.