Overlooked CPF Contribution

[mayumi]

Hi,

On my 2nd year as a PR, my company deducted 5% CPF from my salary. I thought it was okay since my first year is only 5%. after 10 months, I heard from a cousin that my contribution should be 15%. I notified our HR and they did some calculations. they told me I need to pay $2000 for the 10 months (equivalent to the 10% unpaid for 10 months). They asked me to choose if i will pay the full amount or they will arrange a loan and then I'll pay it on a monthly basis. I am already on my 3rd year and paying 20% plus the 10% is very heavy for what i am earning. Should the company bear the amount because they overlooked my contribution or is it a shared ignorance and i should just accept the monthly 30% deduction? Do i have the right to complain? Please advise. thanks.

[ecureilx]

Hi,

On my 2nd year as a PR, my company deducted 5% CPF from my salary. I thought it was okay since my first year is only 5%. after 10 months, I heard from a cousin that my contribution should be 15%. I notified our HR and they did some calculations. they told me I need to pay $2000 for the 10 months (equivalent to the 10% unpaid for 10 months). They asked me to choose if i will pay the full amount or they will arrange a loan and then I'll pay it on a monthly basis. I am already on my 3rd year and paying 20% plus the 10% is very heavy for what i am earning. Should the company bear the amount because they overlooked my contribution or is it a shared ignorance and i should just accept the monthly 30% deduction? Do i have the right to complain? Please advise. thanks.

your component is FOR YOU TO PAY.

My work place when I got pr, there was no discussion, HR told me "SIGN HERE AUTHORISING FULL DEDUCTION FROM DAY 1.. " and CPF says DONE, and from day 1, I pay my full deduction ..

The company will co-pay their component .. unless they expect you to co-pay for their share, and in which case, you can ask CPF (and I believe your HR will be not happy .. especially if your company is a small one .. )

[beppi]

Contact CPF directly and ask for their advise!
Deducting the correct amount of contribution from your salary, and sending it to CPF together with their share, is responsibility of your employer. CPF will penalise employers for any mistake they make, and have ways to enforce payments that the employer didn't do voluntarily.
I suspect you will have to pay your share in the end, but since the whole matter was your employer's mistake, not yours, it's their responsibility to find a solution that is comfortable for you. CPF will probably help you with this.

[ecureilx]

CPF will probably help you with this.

But I would still remind you to tread carefully .. the smaller the company, the higher the chance that HR Can turn into great enemies .. and there is nothing worse than having HR pitted against you .. you may come out as a winner, but overall - no comments ..

I would suggest to talk to CPF and then work with your HR than against your HR

That's my 2 cents ..