CPFB | Declaring accurate wage information

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Updates on 20 Apr 2021

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Overview
Obligations
Examples

Overview

Why it’s important to declare accurate wage information

CPF contributions are computed based on your employee’s wages. It is therefore important to declare accurate wage information to CPF Board so that the correct amount of CPF contribution can be verified.

Obligations

How to declare wages accurately

You should declare the actual wages payable to your employee(s) to CPF Board, without applying the Ordinary Wage (OW) and Additional Wage (AW) ceilings. You should do so even if there are no changes in your employee’s wages. Here are some of the things to note.

Only include payments that are defined as wages

CPF contributions are computed based on employee’s wages. You should only include payments that are defined as wages when declaring wage information.

Definition of wages

Declare OW and AW information separately

Wages can be classified as OW or AW. You must declare your employee’s OW and AW separately when making the monthly CPF contributions.

Learn about OW and AW

Declare wages without applying the OW and AW ceilings

It’s important you declare the actual wages payable to your employee(s) without applying the OW and AW ceilings. This allows your employee(s) to verify the wages declared by you against their payslip.

Failure to declare accurate wage information

It is an offence under the CPF Act to knowingly provide false information to CPF Board. If convicted, a first offender may be fined up to $5,000 or jailed for up to 6 months, or both. Periodic audits and investigations will be conducted by the CPF Board to check on the accuracy of wage information submitted.

Verification of declared wages by your employees

We have informed employees to check their monthly wages declared by their employers to the CPF Board and to check directly with their employers on any discrepancies found. If employees are not satisfied with the employer’s explanations, they may lodge a report with the CPF Board.

Examples

Examples of wage declaration

Here are some examples on how you should declare your employees’ monthly wages in the following scenarios.

Employee’s wages are above the OW and/or AW ceilings

Declare the actual wages without applying the OW and AW ceilings

Example:

If actual wages payable to your employee for March 2021 are as follows:

OW: $8,500
AW: $100,000

Please declare the OW as $8,500 and AW as $100,000.

You should not declare the wages based on the OW and AW ceilings as these does not reflect accurate wages for your employee.

Learn more about the OW and AW ceilings.

Making multiple submissions in the same month for the same employee

Declare the actual wages payable to the employee, even if you’re making multiple submissions for the same employee in the same month

Example:

Your employee has an OW of $4,000 and the total CPF contributions payable is $1,480 for March 2021. You intend to make two submissions for CPF contributions of $1,000 and $480, on 31 March and 7 April respectively.

For each submission, you should declare the OW as $4,000, based on the actual wages payable to your employee.

Employee joins or leaves the company in the middle of the month

Declare the pro-rated wages payable to the employee

Example:

Your employee’s salary stated in the employment contract is $5,000 per month. He joined the company on 16 January 2021. You should declare the employee’s pro-rated wages accordingly for the CPF submission for January 2021.

Employee does not receive mandatory CPF contributions for the month

Declare the actual wages only if there are mandatory CPF contributions

Example:

If your employee is posted overseas or on no pay leave for an entire month, your employee is not eligible for mandatory CPF contributions. Please do not include this employee in your CPF submission.

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Employer obligations

Declaring accurate wage information

Why it’s important to declare accurate wage information

How to declare wages accurately

Examples of wage declaration

Employee’s wages are above the OW and/or AW ceilings

Making multiple submissions in the same month for the same employee

Employee joins or leaves the company in the middle of the month

Employee does not receive mandatory CPF contributions for the month

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Why it’s important to declare accurate wage information

How to declare wages accurately

Examples of wage declaration

Employee’s wages are above the OW and/or AW ceilings

Making multiple submissions in the same month for the same employee

Employee joins or leaves the company in the middle of the month

Employee does not receive mandatory CPF contributions for the month