What happens if I am unable to pay CPF contributions on time due to COVID-19?
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). This includes imposing late payment interest charged at 1.5% per month commencing from the first day after the due date.
Timely payment of CPF contributions is important for employees to meet their housing, retirement and healthcare needs.
Nevertheless, we appreciate that the COVID-19 situation is extremely challenging and difficult for businesses in some sectors. Apart from the support measures announced by the Government at Singapore Budget 2020, companies facing cash flow issues can explore the following options to keep their businesses viable:
- Tapping on training support schemes to send their employees for training and upskilling and receive absentee payroll funding;
- Making adjustments to work arrangements with or without wage cuts;
- Making direct adjustments to wages; or
- Putting employees on no-pay leave.
Employers can refer to the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment for guidance on the appropriate measures to cope with cash flow issues and manage excess manpower.
You may also wish to look out for the additional support measures for workers and businesses in response to the COVID-19 pandemic that the Government announced at Singapore Budget 2021: