Why should I be jailed for non-payment of CPF contributions?
CPF Board takes a serious view on employers who do not fulfil their CPF obligations to their employees. The jail term reflects the severity of CPF offences and serves as a strong deterrence to errant employers. It is also a reminder of the importance of employers’ legal obligation to pay CPF contributions correctly and promptly for their employees.
If we detect CPF non-compliance, which includes late payment and non-payment of CPF contributions, we will take enforcement actions to recover any CPF contributions owed to employees. We may charge late payment interest and impose composition amount on non-compliant employers.
If you fail to pay the CPF arrears, you will be taken to court. The court will order you to pay the contributions, interest as well as a court fine and/or be sentenced to imprisonment.
The penalties stipulated under the CPF Act for employers convicted of late payment offence are:
- Up to $5,000 court fine and no less than $1,000 per offence and/or up to 6 months’ imprisonment for first conviction
- Up to $10,000 court fine and no less than $2,000 per offence and/or up to 12 months’ imprisonment for subsequent convictions