CPF Board recovers $293 million of CPF arrears in 2012

CPF Board recovers $293 million of CPF arrears in 2012

SINGAPORE - The CPF Board recovered a total of some $293 million of CPF arrears (including late payments) in 2012 due to increased enforcement efforts.

Of the $293 million, $9.4 million was recovered from 4,000 companies who underpaid or did not pay CPF. 66 per cent of these companies were found to have underpaid CPF contributions while the rest did not pay CPF contributions. The CPF Board's enforcement efforts on underpayment and non-payment of CPF in 2012 benefited more than 11,000 employees, a 10 per cent increase from 2011.

The Board also detected an average of 3,100 employers who were paying CPF contributions late each month, amounting to a total of $283.7 million of CPF arrears recovered in 2012. More than 190,000 workers benefited from CPFB's recovery efforts, consistent with 2011's figure.

The audits and investigations carried out by the CPF Board were part of the Board's ongoing efforts to ensure that workers are paid the CPF contributions that are due to them.

Mr Ng Hock Keong, Director of Enforcement Division at CPF Board said, "Since late last year, the CPF Board has stepped up the number of audits and on-site inspections to deter errant and recalcitrant employers from circumventing their CPF and EA obligations. Such enforcement activities complement our outreach efforts to raise awareness amongst employees and employers of their CPF rights and obligations. Hence, through enforcement and education, we hope to see greater compliance with the CPF Act and Employment Act."

It is an offence under the CPF Act for employers to default on CPF contributions. Regular audits on employers, including on-site inspections, are conducted to ensure CPF contributions are paid promptly and correctly. Upon detection of CPF non-compliance, the CPF Board takes action to recover the arrears and late payment interest. Prosecution action may be taken against employers who do not comply. First time offenders may be fined $2,500 for each offence. Repeat offenders may be fined $10,000 for each offence.

In 2012, there were a total of 39 convictions for non-payment and underpayment of CPF, and 180 convictions for late payment. All convicted employers were fined and ordered to pay the CPF arrears by the Subordinate Court.

Purchase this article for republication.

BRANDED CONTENT

SPONSORED CONTENT

Your daily good stuff - AsiaOne stories delivered straight to your inbox
By signing up, you agree to our Privacy policy and Terms and Conditions.