With the additional step to split the service fee under Contribute-As-You-Earn (CAYE), would this result in a delayed payment of service fee that may exceed the credit terms?
If you’re paying via the bank mode for Contribute-As-You-Earn (CAYE), please submit the payment file to OCBC at least four working days before the service fee is due, to ensure timely payment. This is because the earliest date of deduction that you can select will be one working day from the date of file transmission to OCBC. Thereafter, it will generally take two working days for the CAYE contribution to be deposited into the SEP’s MediSave account. This timeframe includes one working day for crediting the net service fee to the SEP’s bank account and another one working day to credit the CAYE contribution to the SEP’s MediSave account.
(Note: An additional two working days will be required if the net service fee payment to the SEP exceeds $200,000.)
Please refer to this document for the illustration of the bank mode process.
If you are using the online submission mode (DDA mode) to make payments, please log into the CAYE digital services at least four working days before the service fee is due to ensure timely payment. This is because the earliest deduction date that you can select will be two working days later (if the submission was made before 5pm). Payment to SEP will generally take up to two working days from the date of deduction.
Please refer to this document for the illustration of the digital submission mode process.
