Singapore
CPF Information
Who should register for CPF?
The Central Provident Fund commonly abbreviated by Singaporeans and referred to as CPF, is a compulsory comprehensive social security saving plan. It aims to provide working Singaporeans with a sense of security and confidence in their old age.
Under the purview of the Ministry of Manpower, the Central Provident Fund is administered by the Central Provident Fund Board which is a Statutory Board.
This scheme of CPF contributions which has proven to be a great success and has enhanced the quality of life of Singapore citizens and its permanent residents. It takes care of the tired retiree when his gusto and zest for life dwindles due to age. And, it takes care of the robust working individual to utilize the CPF funds for the purchase of property with a view to provide a roof under his head.
The CPF was started on 1st July 1955. Singapore’s national philosophy of self reliance as opposed to becoming a welfare state was the golden thread that gave rise to the CPF scheme which essentially is a compulsory savings scheme aimed to allow workers to benefit in their retirement. Under the scheme, a part of the worker’s monthly income is set aside accumulating till retirement at which point the savings can be withdrawn.
Medisave was also introduced allowing CPF members to use their CPF savings for hospitalization expenses and their dependants.
Accounts
Singapore Citizens, Permanent Residents and their employers make monthly contributions to CPF and they go into three accounts
- Ordinary Account- for housing , insurance ,investment and education
- Special Account – for investment in retirement related financial products
- Medisave Account – for Hospititlization and approved medical insurance
Registering CPF Board
A. Making Your First CPF Contribution as a New Employer
You are strongly encouraged to sign up for CPF e-Submission to make your first CPF payment. To do so, please submit the following documents at least 7 weeks before the due date of your first CPF payment:
- Form CPF/1
- CPF e-Submission Registration Form
- Application for Inter-Bank GIRO Form (if applicable)
If you need to make your first CPF payment by cheque, please attach the cheque together with the Form CPF/1 Your cheque should be crossed and made payable to “CPF Board”. The employer’s name, contact details and the words “Making First CPF Contribution” must be indicated at the back of the cheque. You will receive a welcome package and your CPF Submission Number your Form CPF/1 has been processed.
A processing fee of S$7 per employee per month is charged for employers who submit CPF contribution details for 11 and more employees using the hardcopy Payment Advice (i.e. not on CPF e-Submission). This will be extended to employers with 4 to 10 employees from October 2009.
B. Registration of New Employee
For every new employee, you are required to complete the New Employee Contribution Form (Form CPF 92) if you are submitting the contribution details by manual mode i.e. via Payment Advice (Form CPF 91). Form CPF 92 has to be submitted together with the Payment Advice.
Form CPF 92 is not required if you are submitting the CPF contribution details via CPF e-Submission.
Informing CPF Board of Any Changes
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Change of Address
Inform the Board of any change in address by completing the form Request for Change of Employer’s Contact (Form CPF/3). Please note that P.O. Box or V. Box address will not be accepted.
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Change in Entity
Employers who are changing the legal status of their entities are required to re-register with the Board. If you are changing the legal status of your existing entity (e.g. Sole Proprietor to Private Limited Company) without any changes in your particulars (e.g. contact details, Principal Place of Business etc), you are only required to complete Section A and D of Form CPF/1 and submit it to CPF baord. Please also inform the Board of the cancellation ofyour existing CPF Submission Number (CSN). You will receive your new CPF Submission Number after they have processed your form.
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Change in Name
Inform the Board in writing if there is a change in name and attach the documents mentioned below which are obtainable from the Accounting & Corporate Regulatory Authority (ACRA).
For companies, a copy of the Instant Computer Information (Business Profile) or Certificate of Incorporation on Change of Name of Company must be attached.
For business firms (i.e. sole-proprietor or partnership), a copy of the Instant Computer Information (Business Profile) or Statement of Changes in Business Particulars including Cessation of Business must be submitted. -
Change in Employees’ Particulars
Ensure that the affected employees inform the CPF Board of any changes in their personal particulars which include:
- change in name
- change in passport/identity card/special pass number
- change in Singapore Permanent Resident (SPR) or citizenship status
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Employees who have left the company
For electronic submission, indicate “Leavers” under the column
“Employment Status”. If you are using the Payment Advice, indicate the employee’s last day of service under the column “Date left Employment” in the Payment Advice (Form CPF 91). -
Termination of business
Employers, who have terminated their business, should inform the Board immediately. This is to ensure that the CPF Submission Number (CSN) is cancelled immediately. Otherwise, a letter of demand will be sent when no payment is received.
Exceptions to Payment of CPF for Employess
Employees who are exempted from CPF contributions
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Foreigners on Employment Pass, Professional Visit Pass or Work Permit
CPF contributions are not allowed for foreigners. Both the employer’s and employee’s share of contributions for foreign employees on Employment Pass, Professional Visit Pass or Work Permit will not be accepted.
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Partners, sole-proprietors or self-employed
All Singapore citizens or Singapore Permanent Residents who derive income from Singapore or from outside Singapore through any trade, business, profession or vocation excluding employment under a contract of service are considered self-employed. Unlike employees, they do not contribute to all 3 CPF accounts. Instead, they are only required to contribute to their Medisave, which is computed based on their annual net trade income earned.
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Employees working overseas
CPF contributions are not mandatory for Singaporean employees who work overseas. If you wish to continue making CPF contributions for your existing employees who are posted overseas, these are deemed as voluntary contributions. You have to register for a new CPF Submission Number (CSN) for such payments.