Can corporate service buyers recover the overpaid Contribute-As-You-Earn (CAYE) contributions due to overpayment of full service fee?
If there is over-payment, corporate service buyers (CSBs) can request a full refund of the Contribute-As-You-Earn (CAYE) contributions from CPF Board within one year from the time the contribution was credited into the self-employed person (SEP)’s MediSave account (MA). The CSB will have to seek a refund of the remaining service fee made from the SEP directly. After receiving a refund of the CAYE contribution paid wrongly, the CSB will be required to re-submit the correct CAYE contribution via the CAYE digital services.
Example:
CSB A paid Mr Tan, their SEP vendor, a service fee of $120 through the bank mode. The bank deducted and paid $12 to Mr Tan’s MA and the net service fee of $108 to Mr Tan’s bank account. However, CSB A subsequently realised that the correct service fee amount agreed upon by both parties was $100. CSB A should:
- Put in a request on the CAYE digital services for a refund of the CAYE contribution ($12) by selecting the transaction that was made in error (e.g. based on Mr Tan’s NRIC and the payment reference number) and providing the relevant supporting documents.
- Seek the remaining $108 from Mr Tan directly.
- Submit another CAYE contribution transaction for Mr Tan based on the correct gross service fee of $100.
