CPFB | Compliance and rectifications

Overview

Compliance and rectifications

As an employer, you have a legal obligation to pay CPF contributions correctly and promptly for your employees. We would take enforcement actions against you if you either fail to pay or underpay your employees’ CPF contributions.

Man holding giant pencil writing on cpf contributions document with buildings in background

Enforcement and penalties for non-compliance

Know the enforcement actions that will be taken and the penalties if you do not comply with the CPF Act on CPF contributions.

Self-rectifying errors made in CPF contributions

Understand what you need to do if you discovered that you have not paid CPF contributions or paid incorrect CPF contributions to your employees.

Penalties

Enforcement and penalties for non-compliance

It is important that you fulfil your legal obligation to pay CPF contributions for your employees. The CPF contributions are meant to help your employees save for their retirement, housing and healthcare needs.

You must fulfil your legal obligations

As an employer, you should pay CPF contributions correctly and promptly for your employees

Enforcement actions will be taken and penalties will be imposed by the CPF Board if you do not fulfil your legal obligation. If you are unable to pay the CPF contributions on time, you should:

Inform your employees of the late payment and the reasons for being late.
Give priority to payment of CPF contributions and pay as soon as possible.

Your employees have the right to check with you if you do not pay their CPF contributions on time or correctly.

It is also the right of your employees to lodge reports with the CPF Board, if you failed to rectify the CPF errors when they have already raised the matter to you. If you are subsequently found to have omitted or underpaid your employees’ CPF contributions upon the Board’s investigations, higher penalties may be imposed.

Enforcement against non-compliant employers

We will take action and impose penalties on non-compliant employers

If we detect CPF non-compliance, which includes late payment, non-payment or underpayment of CPF contributions, we will take action to enforce any CPF contributions owed to employees. We may impose interest on CPF contributions in arrears (late payment interest) as well as a composition amount on non-compliant employers.

Further penalties will be imposed upon conviction

If you fail to pay, we will take you to court. You shall be liable on conviction to a court fine or imprisonment or both. The court will also order you to pay the CPF contributions and late payment interest.

Find out more about the enforcement actions and penalties we would take against you if you default on CPF contributions.

Find out more

Rectification

Self-rectifying errors made in CPF contributions

CPF contributions not paid or underpaid

You will need to rectify any omission or underpayment of CPF contributions immediately. You can submit these CPF contribution arrears in the same way that you submit your monthly CPF contribution submissions for your employees.

If you do not rectify errors as soon as possible, you will incur higher late payment interest on the outstanding CPF contributions.

CPF EZPay

CPF contributions overpaid

If you have overpaid CPF contributions for your employee(s), you can apply for a refund/an adjustment. Find out more in the next section.

Wrong wages declared

If you have declared wages incorrectly, you should inform the CPF Board and ensure that wages are accurately declared in future CPF submissions.

Write to us

Self-rectifying errors made in CPF contributions

Applying for a refund or an adjustment of CPF contributions

Find out how you can apply for a refund or an adjustment of CPF contributions.

Refund of contributions paid

You can apply for a refund if you are seeking a return of the monies paid in excess or in error to your employees.

Refunds can be for specific employee(s) or the entire submission.

Refund of contributions

Adjustment of contributions paid

You can apply for an adjustment if you want to change the contributions record.

Examples of adjustment are changing of contributions month and year, CPF Submission Number (CSN) or payment recipient.

Adjust contributions

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You must fulfil your legal obligations

Enforcement against non-compliant employers