Enforcement and penalties for non-compliance

In the course of the CPF Board’s inspection into non-compliance of CPF contributions, the CPF Board will contact the employer and affected employees.

Under Section 5 of the CPF Act, the CPF Board’s inspectors can: 
 

1. Enter a workplace 
   
   
2. Interview current and former employees 
   
   
3. Require employers to produce all documents related to the inspection, and answer any related questions
   
   
4. Take possession and make copies of requested documents.

Obstructing the work of the CPF Board’s inspectors is an offence under the CPF Act. Penalties for obstruction include fines of up to $10,000.

If employers do not comply with the CPF Act on CPF contributions, the CPF Board will require them to pay the outstanding contributions and late payment interest. The CPF Board may also impose a composition amount.

If employers do not pay all outstanding CPF contributions, late payment interest, and the composition amount (if any) by a given deadline, the CPF Board will commence prosecution actions against the employers. Employers shall be liable on conviction to a court fine or to imprisonment or to both.

If employers are convicted for offences under Section 58(1)(b) of the CPF Act, they will be liable for:
 

1. A court fine of between $1,000 and $5,000 per offence and/or up to 6 months’ imprisonment for the first conviction.
   
   
2. A court fine of between $2,000 and $10,000 per offence and/or up to 12 months’ imprisonment for subsequent convictions.
   

The CPF Board will also seek a court order requiring the employer to pay outstanding CPF contributions and late payment interest.