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Enforcement
Enforcement actions against non-compliant employers

The CPF Board takes a serious view on employers who fail to pay CPF contributions correctly and promptly (the due date for CPF contributions is on the last day of the calendar month). Enforcement action would be taken against employers who fail to pay by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday or public holiday). 

Multiple channels to detect non-compliant employers

The CPF Board has multiple channels to identify employers who do not pay their CPF contributions correctly and promptly.

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Detection system

The CPF Board’s detection system identifies employers who are late in paying CPF contributions.

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Reports lodged with CPF Board

Employees and whistleblowers can lodge reports to CPF Board about late payment, non-payment, or underpayment of CPF contributions.

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Audit

The CPF Board proactively audits employers to check the accuracy of CPF contributions paid. 

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Inspection and enforcement action
Inspections by CPF Board 
CPF Board can conduct inspections

In the course of the CPF Board’s inspection into non-compliance of CPF contributions, the CPF Board will contact the employer and affected employees.

 

Under Section 5 of the CPF Act, the CPF Board’s inspectors can: 
 

  1. Enter a workplace 

  2. Interview current and former employees 

  3. Require employers to produce all documents related to the inspection, and answer any related questions

  4. Take possession and make copies of requested documents.

 

Obstructing the work of the CPF Board’s inspectors is an offence under the CPF Act. Penalties for obstruction include fines of up to $10,000.

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Enforcement actions
If employers fail to comply, the CPF Board will take enforcement actions and impose penalties

If employers do not comply with the CPF Act on CPF contributions, the CPF Board will require them to pay the outstanding contributions and late payment interest. The CPF Board may also impose a composition amount.

 

If employers do not pay all outstanding CPF contributions, late payment interest, and the composition amount (if any) by a given deadline, the CPF Board will commence prosecution actions against the employers. Employers shall be liable on conviction to a court fine or to imprisonment or to both.

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Penalties
Penalties include late payment interest, composition amount, court fine, and imprisonment
Late payment interest
The CPF Board charges interest on CPF contributions in arrears (late payment interest) starting from the day after the due date

The CPF Board charges late payment interest at 1.5% per month, starting from the day after the due date, subject to a minimum amount of $5. This is to deter employers from paying CPF contributions late for their employees.

 

For example, if an employer is late for January CPF contributions, the late payment interest will be calculated from 1 February.

https://www.cpf.gov.sg/service/article/how-does-cpf-board-calculate-interest-on-late-payment false
Details on interest due calculation
How to pay late payment interest

Employers can pay late payment interest using the same submission mode used for your monthly CPF contribution submissions. 

 

Please refer to the payment methods guide for detailed instructions.

https://www.cpf.gov.sg/service/sfc/servlet.shepherd/document/download/069IW000004wt2GYAQ false
See payment guide (PDF, 0.1MB) Make payment
Composition amount
The CPF Board may impose a composition amount

The CPF Board may impose a composition amount of up to $1,000 per offence, to allow employers to compound their CPF offences (settle the case out of court). Employers can only compound their CPF offences if they have paid up all outstanding CPF contributions and late payment interest.

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Paying composition amount

Employers can pay their composition amount via “Other Employer Services” on the CPF website. Please refer to the payment methods guide for detailed instructions.

https://www.cpf.gov.sg/service/sfc/servlet.shepherd/document/download/069IW000004wt2GYAQ false
See payment guide (PDF, 0.1MB) Make payment
Court fine and/or imprisonment
If employers do not pay all outstanding CPF contributions, late payment interest and composition amount (if any) by the deadline, the CPF Board will commence prosecution actions against them

If employers are convicted for offences under Section 58(1)(b) of the CPF Act, they will be liable for:
 

  1. A court fine of between $1,000 and $5,000 per offence and/or up to 6 months’ imprisonment for the first conviction.

  2. A court fine of between $2,000 and $10,000 per offence and/or up to 12 months’ imprisonment for subsequent convictions.

 

 

The CPF Board will also seek a court order requiring the employer to pay outstanding CPF contributions and late payment interest.

 

/content/dam/web/employer/compliance-and-rectifications/documents/Employers Convicted under the Central Provident Fund Act.pdf true
List of employers convicted for CPF offences in the past 24 months (PDF, 0.1MB)
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