Late CPF payment by employer

[Splatted]

My other-half had resigned from her job back in June, however the employer has not paid the last CPF contribution (neither the employer, nor the employee portion) into her fund even though it's been deducted from her pay.

Recently she noticed the discrepancy, and when bringing it to their attention was told that they will pay it in during the next cycle (14th of September).

I was wondering what the obligation is by employer - are they required to pay immediately upon being notified or is there a further grace period they can dilly-dally?

The GM of this company has been rather lax with keeping up with other re-imbursements to employees of recent as well, such as dinner allowance & taxi reimbursements, so it seems a general attitude issue rather than a lack of funds.

With this in mind, should she report this to CPF board? My initial comment to her was to give them a few weeks, but I'm interested to hear if others have another viewpoint.

[Strong Eagle]

In general, CPF must be paid within two weeks of the pay period. If there is a late filing, or no filing CPF will eventually catch it. A letter is issued and penalties are imposed for late payment. If still no payments are made various additional penalties can be imposed.

[sundaymorningstaple]

I would make an inquiring call to the CPF board to let them know that your former company has not paid your CPF. If you have copies of your Pay Voucher which shows the amount of the deduction then then will pursue the matter. There is no reason, if she finished her job in June, that she should not have had her CPF credited into her account any later than the 17th day of July. It sounds like the company is trying to pull a fast one. (A lot of them do)

If you have a the Company Name and your CPF (NRIC) account number then they can do the necessary.

sms

[sundaymorningstaple]

The following taken from the CPF board's site from the "Employer's Handbook"

ENFORCEMENT OF CPF CONTRIBUTIONS

Enforcement

The Board takes a serious view of employers who pay late or do not pay CPF contributions for their employees. Upon detection of late payment or non-payment of contributions, action will be taken to recover any arrears or CPF contributions owing.

Step 1: Employers In Default
The Board’s computerized system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by registered post to the employers informing them that legal action will be taken unless CPF contributions, interests and composition amount are paid within the notice period. Employees, whose contributions are not paid, will be informed of the non-payment.

Step 2: Employers who fail to pay before the court hearing
If the employers fail to pay up, they will be taken to court. The court will order them to pay the contributions, interests and a court fine.

Step 3: Conviction
If the employers still do not pay up, a Warrant is issued to seize and sell the employers’ assets. Bankruptcy or winding up proceedings may also be instituted against the employers. However, this will only be done as the last resort.

First-time defaulters, who are convicted of a late payment offence, may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence.

The director, manager, secretary or other officer in charge of paying the CPF contributions, as well as the corporate body found guilty of a late payment offence may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence.

Employers, who have recovered the employee’s share of contributions and failed to pay the contributions to the Board, may be fined $10,000 or jailed 7 years, or both.

Industry Surveys

The Board conducts spot checks on various industries to determine the level of compliance. Such checks involve on-site inspection of employees’ wage records. Should discrepancies be detected, interviews and verifications with the employees may be conducted on the spot, and further checks made on the wage records.

If the employer is found to have underpaid or omitted to pay contributions, the arrears plus penalty interest will be computed and recovered.

Hope this helps.

[Splatted]

ENFORCEMENT OF CPF CONTRIBUTIONS

Step 1: Employers In Default
The Board’s computerized system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by registered post to the employers informing them that legal action will be taken unless CPF contributions, interests and composition amount are paid within the notice period. Employees, whose contributions are not paid, will be informed of the non-payment.

Thanks everyone for your advice.

Out of curiosity, would anyone know how much of a "notice period" for payment is given to employer for step 1?

[Strong Eagle]

ENFORCEMENT OF CPF CONTRIBUTIONS

Step 1: Employers In Default
The Board’s computerized system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by registered post to the employers informing them that legal action will be taken unless CPF contributions, interests and composition amount are paid within the notice period. Employees, whose contributions are not paid, will be informed of the non-payment.

Thanks everyone for your advice.

Out of curiosity, would anyone know how much of a "notice period" for payment is given to employer for step 1?

14 days, I believe.

[sundaymorningstaple]

The only problem is that the computerized method doesn't always catch the employee that has left and the company has continued to submit CPF but without including the employee's name. The records always are submitted and should indicate whether or not the employee is "existing", "New", "Left" or "New & Left same month". From experience I know that this doesn't always work as I've often forgotten to note that somebody's last CPF contribution is for the month that they have left and left it marked as "Existing". I've never been questioned about the following month's contributions not including that employee's name.

That is why I advise calling the CPF board and letting them know (supported by your payroll voucher indicating CPF deductions) even if your salary was small there is still a possibility that there is the Employer's contribution which starts before the employees contributions do.

If she left in June and received her salary at that time then they have had more than enough time. Call CPF!