Are you an employer hiring your first employee? Here are 5 things that new employers should know about CPF contributions for their employees:
1) CPF Submission Number
If you hire local employees (Singapore Citizens or Singapore Permanent Residents), it is mandatory to pay CPF contributions on the wages that you pay to your employees. To make CPF payments, you first have to register your business as an employer by applying for a CPF Submission Number (CSN).
2) CPF contribution due date
CPF contribution for wages for the month needs to be paid by the 14th day of the following month. If CPF payment is made later than the due date, late interest will be charged by CPF Board.
3) Contribution to Self-Help Group
When making CPF contribution for your employees, contribution to self-help group (SHGs) funds should be paid at the same time. Contribution to SHGs is mandatory for all local employees. Foreign employees who belong to the Indian Community (except those on the Foreign Worker Levy (FWL) scheme) or are Muslims also need to contribute to their respective SHG.
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
Foreign Worker Levy (FWL) is relevant for foreign employees who are work permit or S Pass holders. FWL is not required for foreign employees who are Employment Pass (E Pass) holders. Payments for FWL are payable via GIRO and the deduction will be made from your account every month.