Employers Guide To F 6p1y45

YOUR OBLIGATIONS AS AN EMPLOYER  Definition of an Employer  Your Employees  Your Responsibility on F Payments  ing with Us  Informing F Board of Changes to Your Business EXCEPTIONS TO PAYMENT OF F FOR EMPLOYEES  Employees who are Exempted from F Contributions COMPUTATION OF F  Definition of Wages  Rates of F Contribution F FOR SINGAPORE PERMANENT RESIDENTS (SPR)  Foreign Employees who obtain SPR Status  Types of SPR Contributions MODES OF SUBMITTING CONTRIBUTION DETAILS MODES OF PAYMENT OTHER OPTIONAL F CONTRIBUTIONS  Additional Medisave Contribution Scheme (AMCS)  Voluntary F contributions (VC)

LIMITS ON F CONTRIBUTIONS  Ordinary Wage (OW) Ceiling  Additional Wage (AW) Ceiling  Voluntary Contribution (VC) Limit COMMON MISTAKES MADE BY EMPLOYERS REFUND OF F CONTRIBUTIONS PAID  Refund of F Contributions Paid in Excess  Refund of F Contributions Paid in Error ENFORCEMENT OF F CONTRIBUTIONS  Enforcement  Industry surveys  Interest on late payment AGENCY SERVICES  Collection of Levies, Funds and Donations  Refund of Excess Payment  Government-paid Maternity Leave (GML)  Government-paid Childcare Leave (GPCL)  Adoption Leave US ANNEXES

  

ANNEX A: TYPES OF PAYMENTS THAT ATTRACT F CONTRIBUTIONS ANNEX B: CALCULATING ADDITIONAL WAGE (AW) CEILING ANNEX C: PAYING F ON BONUSES

YOUR OBLIGATIONS AS AN EMPLOYER

Definition of an Employer

An employer is any person, company, association or body of persons, whether or not incorporated, employing an employee. An employer can be:   

any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer. any person trading in his own name or who has domestic worker(s). The person must under the name shown in his identity card or port. companies which employ foreign workers holding work permits in Singapore. These employees are on the Foreign Worker Levy (FWL) Scheme and are exempted from contributing F.

Your Employees

Your employee is any person who is employed in Singapore and any Singaporean seaman who is employed by an employer under a contract of service or other agreement entered into in Singapore. Some of the factors which form the contract of service are: the employer’s control over payment, duration of work, dismissal, substitution of workers and method of work. F contributions are also payable for the following employees: a. Company Directors

Directors of any company are considered employees if they are engaged under a contract of service and paid a salary on top of any fee received. F contributions are not payable on directors’ fees voted to them at General Meetings.

b. Part-time/Casual Employees

F contributions are payable by the employer for part-time/casual employees. F contributions are also payable for all school-leavers or students working on a part-time or temporary basis, except for the following groups:  Tertiary students on full-time industrial attachment.  Tertiary students employed under a training programme approved by their institutions.  Overseas students on training attachment in Singapore for less than 6 months, as part of their overseas tertiary education requirements.  “N” and “O” level students working during their gazetted school holidays. F contributions are, however, payable from January of the following year, after their final examinations.  “A” level students working during their gazetted school holidays. F contributions are, however, payable for students who work in November/December after completing their final “A” level examinations. c. Family Workers

F contributions are required for family if they are receiving wages for work done for the proprietor. d. National Service In-camp Training

Under the Enlistment Act, F contributions are payable for Operationally Ready NSmen on in-camp training. The employer has to pay the F contributions on the wages given by the employer and makeup pay from MINDEF. The employee’s share of contributions can be recovered from the employee’s wages. e. Concurrent Employment

If an employee is concurrently employed by more than one employer, all his employers must pay F contributions on the wages given to the employee. If his combined monthly income is below the Ordinary Wage (OW) Ceiling, F contributions are payable based on the prevailing F rates. The prevailing OW Ceiling is $5,000 per month. However, if the employee’s combined monthly income exceeds the OW Ceiling, the employee may apply to the Board to limit the total of his share of contributions on Ordinary Wages as follows: Age

Limit on Ordinary Wages (Employee's share) From 1 Sep 2012 (Based on Sep 2012 F contribution rates)

50 years and below Above 50 to 55 years Above 55 to 60 years Above 60 to 65 years Above 65 years

$ 1,000 $ 925 $ 650 $ 375 $ 250

Applications to limit the total amount of the employee's share of F contributions on Ordinary Wages should be addressed to the Court Proceedings Section. It should indicate:  the amount of Ordinary Wages from each employer  the employee’s share of F contributions  the amount of F contributions to be paid through each employer Each employer will have to pay their normal share of the F contributions on the full amount of the wages, subject to the OW Ceiling. f. Singapore Permanent Residents (SPRs)

F contributions are mandatory for foreigners from the day they obtain their SPR status. The day they obtain the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore. Your Responsibility on F Payments

You have a grace period of 14 days to make payment of F contributions after the end of the month for which F contributions are due. If the last day of the grace period falls on a Saturday, Sunday or Public Holiday, F contributions must be paid by the next working day. You are required to pay the employer’s and employee’s share of F contributions monthly for all employees (Singapore Citizens and Singapore Permanent Residents) at the rates set out in the F Act. The contributions payable should be based on the employee’s actual total wages earned for the calendar month. You are entitled to recover the employee’s share when the contributions are paid for that month. If you fail to recover the money then, and the error was not due to your negligence, you can still do so provided:  

you have paid the F contributions to the Board, and you have either forwarded your employee’s written consent to the Board, or obtained the Board’s written permission on the matter.

This must be done within six months from the time the contributions should have been recovered. ing with Us a. Submission of F Contribution Details By New Employers

As a new employer, please click here for the application to submit F contribution details via F Auto-eXcel Plus (AX Plus). You should submit your application as soon as you intend to hire your first employee. To apply, you will need your Sing and entity’s Unique Entity Number (UEN).

Once your application is approved, you will receive an email and welcome letter containing your F Submission Number (CSN), Payment Advice (F91) and GIRO application form. Please quote your CSN when transacting with the Board e.g. paying F contributions or writing to us. You have a grace period of 14 days to pay the F contributions after the end of the month for which F contributions are due. If the last day of the grace period falls on a Saturday, Sunday or Public Holiday, F contributions must be paid by the next working day. You will receive the Record of Payment (ROP) when your payment has been processed. Please check your ROP and inform the Board immediately of any inaccuracy. The ROP should be kept for future reference. If you have misplaced the ROP and need a re-print, a service charge is payable. For more information on F contribution rates and other employer-related matters, please click here. For enquiries on F Auto-eXcel Plus: Number : 6220-2340 Email Address : [email protected] b. Registration of New Employee

For every new employee, you are required to complete the New Employee Contribution Form (Form F 92) if you are submitting F contribution details via hardcopy Payment Advice (Form F 91). Form F 92 has to be submitted with Form F 91. However, if you are submitting F contribution details via F e-Submission, Form F 92 is not required.

Informing F Board Of Changes to your Business a. Change of Address

Inform the Board of any change in your address by using our online application. A Sing is required. Please note that P.O. Box or V. Box addresses will not be accepted. b. Change in Entity

Employers who are changing the legal status of their entities are required to re-apply with the Board. Please re-apply using our Online Application service. You will receive your new F Submission Number after we have processed your application. For enquiries, please call F Call Centre at 1800-227 1188 or email us at [email protected]. c. 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 ing & 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. d. Change in Employees’ Particulars

Ensure that the affected employees inform F Board of any changes in their personal particulars which include:  change in name  change in port/identity card/special number  change in Singapore Permanent Resident (SPR) or citizenship status e. 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 F 91). f. Termination of Business / No more Local (Singaporean or Singapore Permanent Resident) Employees

Employers who have terminated their businesses or have ceased to hire any local employees, must inform the Board in writing immediately so that we can update their F records.

EXCEPTIONS TO PAYMENT OF F FOR EMPLOYEES Employees who are exempted from F Contributions

a. Foreigners on Employment , S , Miscellaneous Work or Work Permit

F contributions are not allowed for foreigners. Both the employer’s and employee’s share of contributions for foreign employees on Employment , S , Miscellaneous Work or Work Permit will not be accepted. b. 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 selfemployed. Unlike employees, they do not contribute to all three F s. Instead, they are only required to contribute to their Medisave, which is computed based on their annual net trade income earned. c. Employees Working Overseas F contributions are not mandatory for Singapore citizens or Singapore Permanent Residents who work overseas. If you wish to continue making F contributions for your existing employees who are posted overseas, these are deemed as voluntary contributions. You have to for a new F Submission Number (CSN) for such payments. COMPUTATION OF F

Definition of Wages

F contributions are computed based on the employee’s total wages for a calendar month. Under the F Act, wages are defined as remuneration in money due or granted to an employee in respect of his employment. These include overtime pay, allowances, cash awards, commissions and bonuses. Annex A shows a general guide to the types of payments that attract F contributions.

For the purpose of computing F contributions, wages are classified as follows: 

Ordinary Wages (OW)

Ordinary Wages are wages due or granted wholly and exclusively in respect of an employee’s employment in that month and payable before the due date for payment of F contributions for that month. 

Additional Wages (AW)

Additional Wages are wages which are not granted wholly and exclusively for the month. Examples are annual bonus, leave pay, incentive and other payments made at intervals of more than a month. 

Total Wages (TW)

The total amount of an employee’s wages for any calendar month is the sum of his Ordinary Wages for the month and the Additional Wages paid to him in that month. Total Wages (TW) = Total Ordinary Wages (OW) + Total Additional Wages (AW)



Wages Not Paid Monthly

When wages are not paid according to the calendar month, e.g. weekly or fortnightly, you have to apportion the wages according to the calendar month for which F contributions are paid. The apportionment is necessary to determine the Ordinary Wages for the calendar month on which F contributions are payable. Example: Company XYZ pays its employees wages every week. In the table below, computation of F contributions for the month of February is based on the wages from 1 to 28 February i.e. wages for 26 to 31 January for the first week and 1 March for the last week are excluded.

Rates of F Contribution

The rate of F contribution is dependent on 3 factors: 1. Singapore Citizen or Singapore Permanent Resident (SPR) 2. Age group 3. Wage band F contribution rates (from 1 September 2012) for Singapore Citizen and SPR employees can be found here. When Your Employee Moves to the Next Age Group

The contribution rates in respect of an employee above 35, 50, 55, 60 or 65 years of age shall be applied from the first day of the month after the month of his 35th, 50th, 55th, 60th or 65th birthday. Example: An employee’s 50th birthday falls on 13 September 2012. F contribution rate For wages earned in September 2012 (Above 35 to 50 years)

For wages earned in October 2012 (Above 50 to 55 years)

36% of total wages (>$1,500) (Employer’s share = 16%; Employee’s share = 20%)

32.5% of total wages (>$1,500) (Employer’s share = 14%; Employee’s share = 18.5%)

F FOR SINGAPORE PERMANENT RESIDENTS (SPR) Foreign Employees who Obtain SPR Status

F contributions are payable once a foreign employee obtains SPR status. To help the SPR employee adjust to the lower take-home pay, both the employer and employee will contribute F at graduated rates for the first two years. The first year rate is payable from the day the employee obtains his SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore. The second and third year rates are payable from the month following the anniversary of the employee’s conversion to a SPR. For example, if your employee became a SPR on 23 January 2011, the first year rate would apply from 23 January 2011. The second and third year rates will apply from 1 February 2012 and 1 February 2013 respectively.

Foreigners who have obtained their SPR status, should only maintain one F . Employers should advise such employees to inform F Board of their new Singapore Identity Card Number so that their previous F (if any) can be merged with their new F . F contributions for SPRs into F s with the prefix SA/SB/SD/SF/TC/TF will be rejected. Please click here to find out how such employees can inform F Board of their new Singapore Identity Card Number. Types of SPR Contributions

SPR employees and their employers have the option to tly apply to F Board to contribute at other prescribed rates during the employee’s first two years of obtaining SPR status. A summary of the options available is as follows: Option Employer Employee

Application

Contribution Rates (from 1 September 2012)

1st year SPR Graduated Graduated Mandatory once Please click here for rate rate employee obtains SPR the Graduated Employer and Employee (G/G) Contribution Rates

2nd year SPR Please click here for the Graduated Employer and Employee (G/G) Contribution Rates

2.

Full rate

Graduated Upon t application Please click here for rate the Full Employer and Graduated Employee (F/G) Contribution Rates

Please click here for the Full Employer and Graduated Employee (F/G) Contribution Rates

3.

Full rate

Full rate

1.

Upon t application Please click here for the Full Employer and Employee (F/F) Contribution Rates (Also applicable for SPR in the 3rd year and onwards of obtaining SPR status)

Option (1) applies once your employee obtains his SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore. For options (2) and (3), the employer and employee must tly apply to the Board using the prescribed form CNR/PR/94A. Once the application is approved, it is irrevocable. These rates will cease to apply upon a change of employment within the first two years i.e. the rates will go back to the graduated rates.

MODES OF SUBMITTING CONTRIBUTION DETAILS

You may wish to submit your F contribution details electronically via the F website. For added convenience, the payment is deducted electronically when you submit a file. a. F e-Submission The benefits of e-submission are as follows:  Save you time and the hassle of paperwork  Allow you to e-submit anytime, anywhere even when you are overseas  Allow you to track your submission status online  No more worries about lost cheque with e-payment  Transmit data via encrypted channel to ensure maximum security  Give you better control as the access is restricted to only authorised staff What are the modes for e-submission? Mode of E-submission F Auto-eXcel Plus

File Transfer Protocol (FTP) using payroll system (via F Auto-eXcel Plus)

AXS

For Whom Employers without a payroll system.

How it Works Submit F contribution details via the F website. Auto-computation of F contribution amounts is provided.

You may pay via GIRO / eNETS. Employers with Export the F contribution details from your a compatible existing payroll system into an electronic file, and payroll system. the file via the F website. You may pay via GIRO / eNETS. Please check with your payroll vendor for details. Employers with Submit F contribution details via AXS Stations*. 10 or fewer No PC or internet connection is necessary. employees. You may pay via GIRO / D-Pay (ATM cards) / Diners Club card. *There are over 700 AXS stations islandwide.

Provident and Tax (PAT)

Employers with or without a payroll system and want to submit F and IRAS returns using one system.

If your current payroll software is compatible with CrimsonLogic's PAT, you can the data from your payroll system to PAT for submissions to F and IRAS. If you do not have a payroll system, PAT also provides the option to prepare and submit F contributions via the PAT website. Please note that fees are payable to CrimsonLogic for the use of this service. For more information, please visit CrimsonLogic's PAT website.

Us For enquiries on e-submission: Electronic Submission Section Tel : 6220 2340 Email : [email protected] Fax : 6229 3499 b. Submission Using Hardcopy Payment Advice Please complete and return the following forms if you are submitting contribution details in hardcopy:  

Payment Advice (Form F 91), giving details of the F contributions payable. If the employer has more than 5 employees, complete the details on Form F 91A New Employee Contribution Form (Form F 92), if you are paying F contributions for the first time for your employee(s), or if the name of your employee(s) does not appear on the F Payment Advice.

The Ordinary and Additional Wage details should be completed for all the F payment forms (Forms F 91, F91A and F 92). The Record of Payment (Form F 90) will be sent to you once the contribution details have been received and your payment processed. Your Payment Advice for the following month’s submission will be enclosed with the Record of Payment. You are advised to check your Record of Payment and inform the Board immediately of any inaccuracy in your payment record. The Record of Payment should be kept for future reference. If you have misplaced the Record of Payment and request a reprint, a service charge will be levied.

Since 2005, employers with 11 or more employees have to pay a Processing Fee (PF) of $7 per employee per month, if they submit F contribution details using hardcopy Payment Advices. The same PF will be extended to employers with 4 to 10 employees in time to come. Subsequently, employers with 3 or fewer employees may also need to pay the processing fee if they are submitting their F contribution details via the hardcopy Payment Advice. MODES OF PAYMENT

F contribution details must be submitted together with F payments. Employers can make payments by either one of the modes listed below: a. Inter-bank GIRO

General Inter-Bank Recurring Order (GIRO) is a convenient and cashless mode of paying F contributions for employees. The GIRO arrangement authorises the Board to deduct the monthly F contributions from the employer’s bank . The amount deducted is based on the contribution details submitted by the employer before the stipulated date. To sign up for GIRO, please complete and submit the Application for Interbank GIRO (IBG) form to F Board. Upon receipt of the form, the Board will send an acknowledgement letter to the employer. The GIRO arrangement is in place once the employer’s application is approved by the bank. The arrangement will only be terminated when the employer have specifically instructed the bank as well as the Board to do so. b. Standing Instructions (SI)

Small employers (1-10 employees) can give a one-time standing instruction to pay a fixed F amount for their employees every month. This is suitable for employers whose F contributions do not vary monthly. All the employer needs to do is to complete and submit these forms to the Board:  complete the Standing Instruction Form (SI1/GIRO)  complete the Application for Interbank GIRO Form (IBG) The same amount will automatically be deducted on the 14th of each month through GIRO. If the 14th falls on a Saturday, Sunday or public holiday, the deduction will be made on the next working day. If there are changes taking effect from a particular month, the employer has to complete and submit a new Standing Instruction Form to the Board. The completed form is to be received by the Board at least 2 working days before the deduction date.

For additional payments such as bonuses and leave pay, the employer only needs to submit a Payment Advice (Form F 91) stating the contribution details. The employer is not required to submit a new Standing Instruction Form. Alternatively, the employer may make payment via the AXS stations or the F website (via F e-Submission). The additional payment will also be deducted through GIRO. c. eNETS

This option is suitable for employers who want to retain tight control over their cash flow and yet enjoy the convenience of electronic payment. With e-payment, employers are able to initiate the deduction. The bank does an immediate check to determine if there are sufficient funds so payment transactions can be confirmed immediately. To use the free e-payment system, the employer has to:  sign up for F e-Submission (Employers) and  have a personal with DBS, POSB, UOB, OCBC or Citibank (Maxisave/ Ready Credit) d. Cheques

Cheques should be crossed and made payable to the F Board. The reverse side of each cheque must bear the F Submission Number (CSN). Cheque payments can be made at any F Service Centres. All cheque payments should be accompanied by the relevant payment forms. e. Cash

Cash payment can be made at any Singapore Post Office. A receipt will be issued for cash payments at the Singapore Post Office. Please do not send cash through post. f. NETS/CashCard

Payment by NETS/CashCard can be made at any Singapore Post Office located islandwide. A receipt will be issued for payment made. g. Diners Club Credit Card/D-Pay (ATM cards)

Payment by Diners Club Credit Card/D-Pay (ATM cards) can be made at any AXS station located islandwide. A receipt will be issued for payment made. h. Interfund Transfer

Fund transfer using OCBC corporate . This option is only available for esubmission via Velocity@ocbc. OTHER OPTIONAL F CONTRIBUTIONS Additional Medisave Contribution Scheme (AMCS)

Employers can contribute more to their employees’ Medisave via the Additional Medisave Contribution Scheme (AMCS). Only Singapore Citizen and Singapore Permanent Resident employees are eligible for AMCS.

Employers can use the AMCS to implement the Portable Medical Benefits Scheme (PMBS). They can also return or transfer any accrued medical benefit of their employees into their F Medisave . Employees may then use the additional Medisave contributions to purchase approved personal medical insurance, or meet healthcare expenses when the need arises. In addition, AMCS contributions are tax-free for employees and relevant tax benefits may also apply to employers. Participation in this scheme is voluntary. Employers may vary the number of employees receiving these additional contributions. Employers may also pay any amount so long as the total contribution to the employee's Medisave does not exceed $1,500 per year. Any excess contribution will be refunded to the employer without interest. AMCS contributions are not part of the prevailing F Annual Limit. Making AMCS for your employees

To participate in AMCS, you will need to be issued with a separate F Submission Number (CSN). Please click here to apply. You should submit your application as soon as you intend to make AMCS for your employees. Once your application is approved, you will receive a CSN for AMCS. Voluntary F Contributions (VC) Making VC as an Employer

Employers can choose to make Voluntary Contributions (VC) to their employees’ F s. To make VC, you will need to be issued with a separate F Submission Number (CSN). Please click here to apply. You should submit your application as soon as you intend to make VC for your employees. Once your application is approved, you will receive a CSN for VC. When making VC, please note that backdating of VC is not allowed and the VC made will be treated as the current month’s contribution.

Making VC as a F Member

Singaporeans and Singapore Permanent Residents can make VC either to: No. Types of VC 1. All 3 F s

Applicable limit(s) F Annual Limit

(Find out the allocation to each with the Voluntary Contribution Calculator) 2.

Medisave only Medisave Contribution Ceiling (MCC) or the F Annual Limit, whichever is lower.

Tax deductions Non-tax deductible for both payer and recipient

Tax deductible for recipient only

When making VC, please note that backdating of VC is not allowed and the VC made will be treated as the current month’s contribution. In order for the year’s F Annual Limit to be applied to the contributions, F Board must receive the VC by the last working day of the year. For example, cheques issued for VC for 2011 should reach the Board by 30 December 2011. Any VC paid in excess of the approved limit will be refunded without interest. VC payments can be made using the following methods: Payment Mode GIRO (only for monthly VC into 3 F s)

Things to Note You can make monthly VC into your 3 F s by completing a GIRO form. Upon GIRO approval, to My Requests or complete the Standing Instruction Form and indicate the VC amount you wish to contribution monthly.

e-Cashier at F website

Payment can be made via eNETS Debit or Credit. For eNETS Debit payment service, the participating banks are DBS/POSB, UOB, Citibank and OCBC. Payment by eNETS is subject to the daily withdrawal limit set by your bank. Please click here to access the e-Cashier.

AXS Station

Payment can be made with an ATM Card (via D-Pay or NETS) or Diners Club Credit Card. Payment by ATM Card is subject to the daily withdrawal limit set by your banks.

iNETS Kiosk Payment can be made via NETS, CashCard or FlashPay Card. Payment by NETS is subject to the daily withdrawal limit set by your bank. Cheque

Cheques should be crossed and made payable to the “F Board”. The cheque should be submitted with FORM VC/1 – Voluntary Contribution for F Member. Cheques may be mailed to F Board or dropped at any F Service Centre. Please also to: (i) date and sign the cheque correctly; (ii) ensure that the words and figures tally; and (iii) counter sign against any amendment/alteration.

Those who want to save more for their retirement can contribute to the Supplementary Retirement Scheme (SRS). For more information on SRS, please click here. LIMITS ON F CONTRIBUTIONS Ordinary Wage (OW) Ceiling

The Ordinary Wage (OW) Ceiling sets the maximum amount of Ordinary Wages on which F contributions are payable per month. From 1 September 2011, the OW Ceiling is revised from $4,500 to $5,000 per month. Additional Wage (AW) Ceiling

The Additional Wage (AW) Ceiling sets the maximum amount of Additional Wages on which F contributions are payable per year. An employee’s AW Ceiling is computed on a per employer basis.

With the increase in the OW Ceiling from $4,500 to $5,000 from 1 September 2011, the AW Ceiling for 2011 and 2012 are revised as follows: No. Scenarios 1.

2.

Employee whose last day of employment is before 1 Sep 2011 Employee whose last day of employment falls within the period from 1 Sep to 31 Dec 2011; OR

Additional Wage Ceiling $76,5001 – Total Ordinary Wages subject to F for 2011

$79,3332 – Total Ordinary Wages subject to F for 2011

Employee who is still in employment on 31 Dec 2011 3.

Employee in employment from 1 Jan 2012

$85,0003 – Total Ordinary Wages subject to F for 2012

1

Equivalent to 17 months x $4,500 Equivalent to (8/12 x 17 months x $4,500) + (4/12 x 17 months x $5,000) 3 Equivalent to 17 months x $5,000 2

You are required to monitor and limit the contributions on Additional Wages of your employees. This is to prevent the refund of excess payment and avoid situations where refunds could not be made due to insufficient funds in the employee’s F s. For more information, please refer to Annex B, “Calculating Additional Wage (AW) Ceiling”. Click here to use the AW Ceiling Calculator Voluntary Contribution (VC) Limit

The maximum amount of voluntary contributions for a person is the difference between the F Annual Limit of $30,600 and the amount of mandatory contributions made for the calendar year. No further voluntary contributions can be made if the mandatory and voluntary contributions have already reached the prevailing F Annual Limit of $30,600. Mandatory contributions (MC) are compulsory contributions required under the F Act. These include F contributions on the Ordinary and Additional Wages for employees, and Medisave contributions by self-employed persons. The maximum amount of voluntary contributions that can be made for the calendar year is as follows: Maximum amount of VC = $30,600 – MC

Any voluntary contributions paid in excess of the approved limit will be refunded without interest. COMMON MISTAKES MADE BY EMPLOYERS How to avoid common mistakes made by employers Common mistakes

 Under/Overpayment due to wrong classification of Ordinary Wages and Additional Wages  Underpayment when F contributions are based on wages not paid monthly  Under/Overpayment when wrong F contribution rates are applied  Under/Overpayment when wrong F contribution rates for Singapore Permanent Residents are applied  Overpayment when F contributions for Ordinary Wages (OW) are paid above the OW Ceiling  Overpayment to employees who: (a) resign in mid-month (b) go on no pay leave in mid-month  Non-payment for: (a) part-time/casual employees (b) employees on probation (c) employees on the last month of employment  Non-payment of F contributions on allowances such as: (a) transport allowance (b) third-party commission  Non-payment for employees under a contract of service  Excess F contributions deducted from employees’ wages Common Mistake

Correct practice

Under/Overpayment due to wrong classification of Ordinary Wages and Additional Wages

Employers should determine whether the wages paid are Ordinary Wages (OW) or Additional Wages (AW) before determining the F contributions payable. Example 1: Where commissions are paid as Ordinary Wages Andy earned a monthly salary of $2,500 in October 2011. In the same month, he also received a commission of $3,000 for work done in October 2011. As his commission was paid out together with his salary in October 2011, both his salary and commission would be classified as OW. Hence the total OW is $5,500 and this amount will be subject to the OW ceiling of $5,000 in October 2011.

Example 2: Where commissions are paid as Additional Wages Natasha works as a sales personnel in a retail shop. At the end of each month, she will receive her basic pay of $1000 and about $2000- $5000 of commissions earned from the previous month’s sales of the luxury bags. The commissions are considered as AW since the commissions are due and payable in the following month. Hence, the total wages should not be capped at the Ordinary Wage ceiling of $5,000 when computing her F contributions. Underpayment when F contributions are based on wages not paid monthly

When wages are not paid according to the calendar month, e.g. weekly or fortnightly, employers should not determine the F contributions based on the wages paid on the different days of the month individually. Instead, employers should apportion the wages according to the calendar month for which F contributions are paid. The apportionment is necessary to determine the Ordinary Wages for the calendar month on which F contributions are payable. Example: Betty pays her employee wages every week. When determining the F contributions payable, Betty should add up the total wages earned for the calendar month, e.g. from 1st to 31st October.

Employers should check the F contribution rates Under/Overpayment when wrong F contribution rates applicable for their employees before determining the F contributions payable, especially when: are applied (i) the employee’s total wages is less than $1,500 (ii) the employee has crossed over to the next age group

Example 1: Where the employee’s total wages is less than $1,500 Chris has an employee who is 36 years old and earned $1,400 in October 2011. Chris should apply the phased-in F contribution rates for aged above 35 years old to 50 years old where total monthly wages are less than $1,500 for his employee. Therefore, the F contribution payable for October 2011 should be: [[$172.20 + {0.226 x ($1400.00 - $1200.00)}] + [$120.00 + 0.24 x ($1400.00 - $750.00)] = $493 (Rounded to the nearest dollar) Example 2: Where the employee has crossed over to the next age group Doris has an employee who is earning a monthly salary of $2,000 and turned 50 years old on 13 October 2011. Doris should apply a lower F contribution rate of 30% from 1 November 2011 for her employee. Therefore, the F contribution payable for November 2011 should be: $2,000 x 30% = $600. Under/Overpayment when wrong F contribution rates for Singapore Permanent Residents are applied

Employers should check the date his employee obtained his Singapore Permanent Resident (SPR) status at the point of employment before determining the F contributions payable. The first year rate is payable from the day the employee obtains his SPR status. The day he obtains the SPR status refers to the date indicated on the entry permit (Form 5/5A) that is issued by the Immigration and Checkpoints Authority of Singapore. The second and third year rates are payable from the month following the anniversary of the employee’s conversion to a SPR. Example: Eric has an employee who is 34 years old, earned a monthly salary of $4,000 and obtained his SPR status on 14 October 2011. Eric should apply the 1st year SPR graduated F contribution rate of 9% from 14 October 2011 onwards for his employee.

Assuming that the pro-rated salary from 14 to 31 October 2011 was $1,000; the F contributions payable should be based on $1,000 and not $4,000. The F contributions payable for October 2011 should be: 4% ($1000.00) + $30 + 0.06 ($1000.00 - $750.00) = $85 (Rounded to the nearest dollar) Overpayment when F contributions for Ordinary Wages (OW) are paid above the OW Ceiling

Employers should pay F contributions for Ordinary Wages (OW) up to the OW Ceiling of $5,000.

Overpayment to employees who: a) resign in mid-month b) go on no pay leave in midmonth

Employers should use the pro-rated salary to determine the F contributions payable to employees who resign or go on no pay leave in mid-month.

Non-payment for: a) part-time/casual employees b) employees on probation c) employees on the last month of employment

Employers should pay F for employees (Singaporean/SPR) as long as they earn more than $50 in a month, regardless if they work part-time/during probation/on his last month of employment.

Example: Fiona is 34 years old and earned a monthly salary of $6,000 in October 2011. The F contribution payable for October 2011 should be based on OW ceiling of $5,000. Therefore, F contributions payable for October 2011 should be: $5,000 x 36% = $1,800 (Rounded to the nearest dollar)

Example: Greg has an employee who earned a monthly salary of $4,000 and resigned on 15 October 2011. Assuming that the salary payable from 1 to 15 October 2011 was $2,000; the F contributions payable should be based on $2,000 and not $4,000.

Example 1: Employment of casual/part-time employees: Mdm Sim is a housewife and she works as a food stall helper from 7:30am - 11:00am on every Monday and Wednesday. She is given $30 for each day that she works. F should be paid to Mdm Sim since her monthly wages are approximately $240 ($30 x 2 x 4 weeks).

For employees who are on no pay leave or have resigned/been terminated, employers should compute the F contributions payable based on the pro-rated wages and not the full wage for the month. Example 2: Employee working on his last month of employment: Helen has an employee who earned a monthly salary of $4,000 and resigned on 31 October 2011. Helen has to pay him F contributions on his total wages paid up to 31 October 2011. Non-payment on allowances: a) transport allowance b) third-party commission

Employers should ensure that F contributions are paid on allowances, e.g. attendance allowance, meal allowance, transport allowance, third-party commission etc. On the other hand, F is not payable on reimbursements since reimbursements are expenses claimed for the actual cost incurred while performing official duties. The amount claimed should be ed by receipts. It includes: a) travel in the line of official duty; b) travel between home and workplace beyond normal working hours, for example on rest days and public holidays; c) travel from home/office to the place of assignment; and d) actual transport expenses where employer is obliged to provide transport and where transport is not available. Example 1: Transport allowance Lily works at an electronics company in Tuas Industrial park. As the location of the workplace is rather remote, the company gives her $150 every month to cover her travelling expenses to work. F is payable on the $150 since it is a transport allowance.

Example 2: Third-party commission F contributions are payable on third-party commissions as long as the commissions are money for services rendered by the employee during his employment. Third-party commissions are commissions that an employee earns from third parties for services rendered by him by virtue of his employment. The arrangement to pay commissions can be formal or informal and F contributions are payable on such third-party commissions regardless of whether the employer earns a commission or whether such commissions are stated in the employment contract. For instance, Ivan is a salesperson and has to recommend his customers the financial institutions listed by his employer for car insurance. For any insurance he sells, he would be paid a commission from the financial institutions. F contributions are payable on such commissions. Non-payment for employees under a contract of service

Employers should ensure that F contributions are paid for all employees under a contract of service. Example: Jill employs a part-time receptionist, who comes to work a few days per month. There is neither a written agreement nor a need to serve termination notice. Jill has to pay F contributions for her temporary, part-time or permanent employees as long as there are wages due and payable to these employees.

Excess F contributions deducted from employees’ wages

Employers should not deduct any F contributions from employees’ wages if they are earning $500 and below in a month. For employees earning more than $500 in a month, employers should compute the employee’s share of F contributions based on the stimulated rates under the F act. Employers must refund the money to employees if they have overdeducted from their employees’ wages for F contributions.

REFUND OF F CONTRIBUTIONS PAID Refund of F Contributions Paid in Excess

Under Section 75 of the F Act, the Board may refund the excess F contributions, only if the Board is satisfied that the amount of contributions paid for the year on additional wages exceeds the amount of contributions payable on such additional wages after re-computation of the Additional Wage Ceiling in accordance with the First Schedule. You should only pay contributions on the Additional Wages up to the Additional Wage Ceiling. If excess contributions have been made, employers and employees can apply for a refund. All applications must be submitted when Total Wages are known, or in the following year. Online applications can be submitted through the E-services page on the website. Refund of F Contributions Paid in Error

Under Section 74 of the F Act, the Board may refund any F contributions paid only if the amount had been paid in error. An error can occur when there is a discrepancy between the amount of F contribution paid and the amount of F contribution payable at the end of the month. If you have inadvertently paid more F contributions than required, you may apply for a refund within one year from the date of payment. Online applications can be submitted through our E-services page on the F website. For example, assuming that under the employment , an employee is paid a certain bonus on the condition that he continues his employment with the employer for the next six months following the bonus payment. If an employee was given the bonus in December 2010 but had resigned within the month of December 2010, then the bonus could no longer be considered as payable to him for that month. If F contributions had been paid on the bonus, there would be a discrepancy between the amount of F contribution paid and the amount of F contribution payable at the end of December 2010. This would constitute an error and a refund of F contributions paid on the bonus could be made. However, if an employee resigned after December 2010, the bonus would be considered payable to him in the month of December 2010 under the employment . In this instance, there is no discrepancy between the amount of F contributions paid and the amount of F contributions payable at the end of December 2010. Thus, the Board is unable to refund F contributions paid on the bonus for the employee who had resigned after the payment month of the bonus.

ENFORCEMENT OF F CONTRIBUTIONS Enforcement

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

Step 1: Employers in Default

The Board’s computerised system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by ed post to the employers informing them that legal action will be taken unless F contributions, interest 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, interest as well as a court fine. Step 3: Conviction

If the employers still do not pay up, a warrant will be 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 used as a last resort. First-time defaulters, who are convicted of a late payment offence, may be fined $2,500 for each offence. Repeat offenders may be fined $10,000 for each offence.

The director, manager, secretary or other officer in charge of paying the F contributions, as well as the corporate body found guilty of a late payment offence may be fined $2,500 for each offence. Repeat offenders may be fined $10,000 for each offence. Employers, who have recovered the employee’s share of contributions and have 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 paying contributions, the arrears plus penalty interest will be computed and recovered. Interest on Late Payment

Interest on late payment is calculated daily at the rate of 1.5% per month, starting from the first day of the following month after the contributions are due (e.g. interest for January contributions will be calculated from 1 February). The minimum interest payable is $5 per month. Example

XYZ Company made a F contribution of $3,000 for the month of October on 20 November 2010. This payment is late by 19 days. Therefore, the amount of late payment interest will be: = $3,000 x 1.5% x 19/30* = $28.50 *Number of days the payment is late/number of days in the month. The cents should be dropped for the interest. Hence, the late payment interest payable will be $28. Keeping your Employees Informed

You may also encourage your employees to check their Statement of to ensure that you have paid their F contributions correctly. If the F contributions are not paid correctly, they should inform the Board on the matter. Employees can access their Statement of anytime, anywhere through my F online services with their Sing.

AGENCY SERVICES

Collection of Levies, Funds and Donations

The F Board is also the collecting agent for the following:       

Foreign Worker Levy (FWL) Skills Development Levy (SDL) Mosque Building and Mendaki Fund (MBMF) Singapore Indian Development Association (SINDA) Fund Chinese Development Assistance Council (CDAC) Fund Eurasian Community Fund (ECF) SHARE Programme Donations

Foreign Worker Levy (FWL)

The FWL is a pricing mechanism to control the number of foreign workers (including foreign domestic workers) in Singapore. An employer who is liable to pay levy for his foreign workers is not required to pay F contributions for them. However, he is required to pay Skills Development Levy (SDL) at the prevailing rate. In addition, if a work permit holder on the FWL Scheme is subsequently granted Singapore Permanent Resident (SPR) status, he will be placed on the F scheme. This will take effect from the day he is granted SPR status. For more information on the levy rates, please refer to the Ministry of Manpower (MOM) website at www.mom.gov.sg.

a. Mode of payment It is compulsory for all FWL employers to pay the levy by Inter-bank GIRO (IBG)*. Employers who fail to do so may risk their workers’ permits being cancelled. The IBG application form is available at employer.f.gov.sg and at all F Service Centres. If the levy is due before the bank approves the IBG application or if the IBG deduction is unsuccessful, employers will have to pay through any of the following modes: i. NETS Payment using NETS for business and domestic foreign worker levy can be made at any SingPost office. You can also use NETS to pay your domestic foreign worker levy at any iNETS kiosk or SAM machine. ii. Cash Cash payment can only be made at SingPost office together with a FWL payment advice (FWL 50A). Please do not send cash by post. iii. Cash Card/FlashPay Card Cash cards/ FlashPay cards can be used to pay domestic foreign worker levy at any iNETS kiosk. You may also use a cash card to pay business and domestic foreign worker levy at any SingPost office. iv. Cheques Cheques may be mailed to F Board or dropped at any F Service Centre. The cheque should be accompanied by a payment advice (FWL 50A). Please indicate the following on the reverse side of the cheque: (i) 'For FWL Payment' (ii) F Submission Number (iii) Employer's Name (iv) Number v. Diners Club Credit Card/D-Pay (ATM cards) Payment by Diners Club Credit Card/D-Pay (ATM cards) can be made at any AXS station. vi. eNETS (also known as Internet Banking) You can perform eNETS through the iFWLB website www.mom.gov.sg> Services and Forms > Internet Foreign Worker Levy Billing system (iFWLB). You will need your Sing and an Internet Banking with DBS, UOB, OCBC or Citibank. To obtain a Sing, please visit www.sing.gov.sg *The levy for a confinement nanny will be billed together with the foreign domestic worker levy, and the total levy amount will be deducted via GIRO. If you do not have a foreign domestic worker, there is no need for a GIRO . You can make payment through the modes stated above. For more details on confinement nannies, please visit www.mom.gov.sg

b. Grace period for payment The grace period for FWL payment is 14 days after the end of the month for which the levy is due and payable. For employers who are on FWL IBG payment, the levy deduction will be made on the 17th of the month. If the 17th falls on a Saturday, Sunday or Public Holiday, the levy will be deducted on the next working day. c. Late payment of levy Interest on late levy payment is calculated at 2% interest rate per month or $5, up to a maximum of 30% of the outstanding levy (whichever is greater), starting from the first day of the month in which the levy is due. (E.g. interest for January’s levy will be calculated from 1 February.) d. Work Permit Cancellation The employer must return his worker’s work permit to the Work Division immediately for cancellation when the worker leaves the employment. If the employer fails to do so, levy has to be paid for the worker for as long as the work permit remains valid. For more details, please MOM (Work Division) or visit MOM website at www.mom.gov.sg. e. Waiver of FWL An employer may apply for a waiver of Foreign Worker Levy (FWL) under circumstances allowed by MOM. This applies to worker(s) not in Singapore for any of the following reasons:       

on home leave# (not applicable to Malaysian workers) on vacation leave*# of at least 7 consecutive days fails to return to Singapore after home leave/vacation on hospitalisation leave under police custody or is housed at the Embassy granted Singapore Permanent Resident status on board of a vessel which leaves Singapore's port for at least 3 consecutive days (applicable to workers who are in the harbour craft industry)  serving National Service in his home country for 3 months (applicable to Malaysian workers only). *Vacation leave refers to the period where foreign worker travels to another country other than the country of origin for the purpose of leisure. During the trip, he/she shall not engage in any form of employment, whether paid or unpaid. #

Levy waiver for each foreign worker under this scenario is capped at a maximum of 60 calendar days per year.

The employer may submit an application online by logging in with the Sing. Alternatively, the employer can the form (FWL 12) and mail it back to F Board. Please refer to the application form for more information on the ing documents required.

The employer will need the F Submission Number (CSN) to complete the form. The application must be made within one year after the end of the month in which the levy has been paid. The amount waived will be used to offset future payments of the FWL. However, the employer can apply for a refund of the amount waived if foreign workers are no longer employed. f. Refund of FWL Paid in Excess If excess levy has been paid, the employer can use it to offset any outstanding levy/penalty before applying to F Board for a refund. The refund must be made within one year after the end of the month in which the levy has been paid. To apply for the refund, the employer may submit the online application, or print a copy of the application form (FWL 7) and mail it back to F Board. The employer will need the F Submission Number (CSN) to complete the form. Skills Development Levy (SDL)

F Board collects SDL on behalf of the Singapore Workforce Development Agency (WDA). The SDL collected is channelled into the Skills Development Fund (SDF), which provides grants to employers who send their employees for training. Under the Skills Development Levy (SDL) Act, employers are required to pay the SDL for every employee they hire. Employers are required to contribute SDL for all employees* up to the first $4,500 of gross monthly remuneration** at a levy rate of 0.25%, subject to a minimum of $2, whichever is higher. For more details, please click here. *

Employees include full-time, casual, part-time, temporary and foreign employees rendering services wholly or partly in Singapore. **

Remuneration is any wage, salary, commission, bonus, leave pay, overtime pay, allowance (e.g. housing) and other payments in cash.

Example of computation EMPLOYEE

GROSS MONTHLY REMUNERATION

SDL PAYABLE

A

$150.80

$2.00

B

$609.50

$2.00

C D

$2,000.00 $4,500.00

$5.00 $11.25

E

$4,502.03

$11.25

F

$10,000.00

$11.25

Total SDL

$42.75

REMARKS

Minimum of $2 is payable Minimum of $2 is payable 0.25% levy 0.25% levy First $4,500 levied at 0.25% First $4,500 levied at 0.25% $42.00 is payable

Total SDL Payable is $42.00. Cents should be ignored only when you arrive at the TOTAL SDL Payable. Computation of SDL

Please also refer to the SDL Calculator to compute the total SDL payable. Mosque Building and Mendaki Fund (MBMF)

Mosque Building & Mendaki Fund (MBMF) comprises the Mosque Building component, the Mendaki component and the Religious Education component: i. The Mosque Building component is used to build new mosques, upgrade and redevelop current mosques. ii. The Mendaki component is used to develop educational and social programmes to strengthen and uplift the Malay/Muslim families. iii. The Religious Education component is used to the current and future religious education needs of the Muslim Community.

All working Muslim Singapore Citizens, Singapore Permanent Residents and foreign workers are required to contribute to the MBMF according to the wage levels below: Monthly Total Wages1

Monthly Contribution (with effect from 1 March 2009)

Less than $1,0012 $2.00 (no change) $1,001 to $2,000 $3.50 $2,001 to $3,000 $5.00 $3,001 to $4,000 $12.50 $4,001 and above $16.00 1 Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowance (e.g. food, shift or transport allowances), commission and bonus. 2

An employee whose wages for a particular month is $200 and below does not have to contribute to the Fund.

The prescribed amounts will be automatically deducted from the wages of Muslim employees. If the employees wish to contribute different amounts or opt out, they can complete the MBMF Change Form from the MUIS and submit it to their employers for endorsement before returning it to the MUIS. Singapore Indian Development Association (SINDA) Fund

All employees belonging to the Indian* Community may contribute monthly to the SINDA Fund according to the wage levels below: Wage Level

Up to $600 Above $600 - $1,500 Above $1,500 - $2,500 Above $2,500

Minimum Monthly Contribution

$1.00 $3.00 $5.00 $7.00

* Refers to every person of Indian descent including Bangladeshis, Bengalis, Parsees, Sikhs, Sinhalese, Telugus, Pakistanis, Sri Lankans, Goanese, Malayalees, Punjabis, Tamils and all people originating from the Indian sub-continent. Foreign workers on the Foreign Worker Levy Scheme do not have to contribute to the Fund. The prescribed amounts will be automatically deducted from the wages of the employees. If the employees wish to contribute different amounts or opt out, they have to obtain the relevant forms from the SINDA and submit them to their employers for processing.

Chinese Development Assistance (CDAC) Fund

All employees belonging to the Chinese Community (Singapore Citizens and Singapore Permanent Residents) may contribute monthly to the CDAC Fund according to the wage levels below: Wage Level

Minimum Monthly Contribution

Less than $2,000 $2,000 or more

$0.50 $1.00

The prescribed amounts will be automatically deducted from the wages of Chinese employees. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from CDAC and submit them to their employers for endorsement before returning them to the CDAC. Eurasian Community Fund (ECF)

All employees belonging to the Eurasian Community (Singapore citizens and Singapore Permanent Residents) may contribute monthly to the Eurasian Community Fund according to the wage levels below: Wage Level

Minimum Monthly Contribution

Up to $1,000 Above $1,000 - $1,500 Above $1,500 - $2,500 Above $2,500 - $4,000 Above $4,000

$2.00 $4.00 $6.00 $8.00 $10.00

The prescribed amounts will be automatically deducted from the wages of Eurasian employees. If the employees wish to contribute different amounts or opt out, they have to obtain the relevant forms from the Eurasian Association (EA) and submit them to their employers for endorsement before returning them to the EA. SHARE Programme Donations

F Board collects donations for SHARE on behalf of the Community Chest, a division of National Council of Social Service. The contribution will critical social service programmes that help children with special needs and youths-at-risk, people with disabilities, frail and lonely elderly and families facing difficulties. Donations by employees are voluntary and deducted from their wages.

Refund of excess payment

Employers who want to apply for a refund of excess payment of SDL, MBMF, SINDA, CDAC, ECF, and SHARE donations should approach the agencies concerned. Government-Paid Maternity Leave (GML)

The Government-Paid Maternity Leave (GML) Scheme was introduced in 2004. Enhancement to the scheme was announced on 17 August 2008 and came into effect legally on 31 October 2008. Under the enhanced GML scheme, employers may claim reimbursement for up to 16 weeks of paid maternity leave taken by eligible female employees. The reimbursement amount is capped at $10,000 (including employer’s F contribution) per 4 weeks of maternity leave taken. Benefits under Enhanced GML Scheme

Maternity leave has been extended from the 12 weeks to 16 weeks with effect from 31 October 2008 for all births as long as the working female employee meets all eligibility criteria as stipulated in the Children Development Co-savings Act (CDCA). For the first 2 confinements, the first 8 weeks of maternity leave will continue to be paid by the employer. The last 8 weeks will be paid by the Government. For the third and subsequent confinements, the full 16 weeks will be paid by the Government. The amount of reimbursement is capped at $10,000 per 4 weeks i.e. $20,000 each for the first 2 confinements and $40,000 each for the third and subsequent confinements. The last 8 weeks of maternity leave (9th to 16th week) can be taken flexibly over a period of 12 months from the date of child’s birth if there is mutual agreement between the employer and employee. For employers to claim Government reimbursement for salaries paid during the maternity leave under the enhanced GML scheme, the female employees must meet the following criteria: a. her child must be a Singapore citizen; b. she is lawfully married to the child's father; and c. she has served her employer for at least 90 days before the birth of the child. If the employee does not meet the criterion (a) and/or (b) at the time of confinement, but meets them within 12 months of the child's birth, she will be eligible for the remaining GML from the date she meets all the criteria. She will need to take the remaining leave before the child turns 12 months old. She will not be paid for maternity leave that was taken before she had met all the stipulated criteria. More information on the enhanced scheme is available at www.profamilyleave.gov.sg

For children born on or after 17 August 2008 and before 31 October 2008 Employers are strongly encouraged to voluntarily provide the additional 4 weeks of

maternity leave under the enhanced GML scheme to all eligible female employees. They will be able to claim reimbursement from the Government after the employees have fully consumed their maternity leave. For children born before 17 August 2008

A female employee who gave birth before 17 August 2008 will be eligible for the previous GML scheme (which provides for 12 weeks of maternity leave) if she meets all the eligibility criteria. More information on the current scheme is available at www.profamilyleave.gov.sg Applying for Government-Paid Maternity Leave (GML)

Female employees are required to submit a declaration of eligibility to their employers at least a week before they start their maternity leave. Employers should check to ensure that their female employees qualify for the benefit before seeking reimbursement from the Government. Employers should pay the female employees the normal salary throughout their maternity leave and then claim reimbursement from the Government. Employers can submit their GML applications online. They would require a Sing to submit their claims. Government-Paid Childcare Leave (GPCL)

The Government-Paid Childcare Leave (GPCL) Scheme was announced on 17 August 2008 and came into effect legally on 31 October 2008. The GPCL Scheme is part of the overall package of measures to parenthood and make workplaces more familyoriented. Under the GPCL Scheme, each working parent of a child (which includes adopted and stepchildren) is entitled to 6 days of statutory paid childcare leave per year if he/she fulfills the following conditions: a. The child is below 7 years of age; b. The child is a Singapore citizen; c. The child’s parents are lawfully married; and d. The parent has worked for the employer for a continuous duration of at least 3 months before consuming the childcare leave. Self-employed parents will also be eligible for GPCL if they meet the conditions (a) to (c) above and the parent has been engaged in his/ her trade, business, profession or vocation for at least 3 months prior to taking the childcare leave and has lost any income during the period of childcare leave.

The first 3 days of the childcare leave will be employer-paid and the last 3 days will be paid by the Government. Regardless of the number of children, the total childcare leave for each parent is capped at 6 days per year. Parents have full flexibility to use this leave to spend time with the child as it is not restricted to any condition such as a pre-existing illness of the child. The amount of reimbursement claimable from the Government is capped at $1,500 per calendar year or $500 per day (including employer’s F contribution) per employee. Generally, the reimbursement will be based on the gross rate of pay (including allowances and F contribution) drawn for that month where the government-paid childcare leave was taken. More information on the scheme is available at www.profamilyleave.gov.sg Applying for Government-Paid Childcare Leave (GPCL)

Employees have to submit a declaration of eligibility to their employers before they start their childcare leave. Employers should ensure that their employees qualify for the childcare leave before seeking reimbursement from the Government. Before granting childcare leave for new hires, employers are strongly encouraged to check the number of childcare leave taken by the employee during the calendar year at the online enquiry system. Employers should pay the employees their salary during their childcare leave as per normal, before claiming reimbursement from the Government for the 4th to 6th day of the childcare leave. The Government will reimburse up to 3 days per calendar year for each eligible employee. Employers can submit their GPCL applications online. They would require a Sing to submit their claims. Adoption Leave

The Adoption Leave refers to 4 weeks of flexible leave for adoptive mothers to care for their adopted newborn children aged 6 months and below. The Government will reimburse employers up to 4 weeks of salary, capped at $10,000 (including employer's F contributions), if they voluntarily grant leave to married, widowed or divorced female employees. For employers to claim Government reimbursement for salaries paid during the adoption leave, the female employees must meet the following criteria: a. The adopted child is a Singapore citizen or becomes one within 6 months of the adoption order being granted, whichever is later; b. She has fewer than 4 other living children (excludes adopted and step children) at the time of adoption or naturalisation;*

c. The child is below 6 months of age and the adoptive mother is lawfully married, widowed or divorced at the point of:  Appointment of Director of Social Welfare as Guardian-In-Adoption by Court Order (for a child who is a Singapore citizen at the point of birth); or  Issuance of Dependant’s by MSF (for a child who is not a Singapore citizen at the point of birth) *Criterion b is not applicable if the application to adopt the child is made on or after 31 October 2008. For a local-born child, an adoptive mother may apply for Adoption Leave when the Court appoints the Director of Social Welfare as guardian in adoption. For a foreign-born child, an adoptive mother may apply for Adoption Leave when the child’s Dependant’s is issued by MSF. Parents of a foreign-born child would have to obtain Singapore citizenship for the child within 6 months of the adoption order being granted. All adoptive mothers could consume their Adoption Leave flexibly or in a continuous block over a period of 6 months from the date of birth of the child. Applying for Adoption Leave

Female employees are required to submit a declaration of eligibility to their employers at least a week before they start their adoption leave. Employers should check to ensure that their employees qualify for the benefit before seeking reimbursement from the Government. Employers should pay the female employees the normal salary throughout their adoption leave and then claim reimbursement from the Government. With effect from 1 January 2009, employers may the application form at www.profamilyleave.gov.sg and submit the completed form to Central Provident Fund Board together with ing documents. Please note that the claim must be submitted within 3 months after the end of the Adoption Leave period. If the set of documents are incomplete (e.g. child has not become a Singapore citizen), you should still submit a claim within the timeframe and inform the Central Provident Fund Board (FB) of the current circumstances for the officers to follow up on your case accordingly. The processing time for adoption leave claims is 6 weeks. Inaccurate information will result in a delay in processing. For claim with incomplete documents, it will be processed within 3 weeks after the full set of documents is furnished.

US Enquiries on Collections & Recovery Services

For more information, please call, the F Call Centre at 1800-227-1188 or email to: [email protected]

For enquiries on 

F liabilities



employer registration / F Submission Number (CSN) and discrepancy management matters



electronic submission of F contribution details



Government-Paid Maternity Leave (GML) scheme matters



Government-Paid Childcare Leave (GPCL) scheme matters

[email protected]

For enquiries on employer F refund

[email protected]

For enquiries on self-employed matters

Other useful s

Work Division Ministry of Manpower 18 Havelock Road Singapore 059764 Tel: 6438 5122 Website: www.mom.gov.sg ing and Corporate Regulatory Authority (ACRA) 10 Anson Road #05-01/ 15 International Plaza Singapore 079903 Tel: 6248 6028 Website: www.acra.gov.sg

Singapore Workforce Development Agency (WDA) 1 Marina Boulevard #16-01 One Marina Boulevard Singapore 018989 Tel: 6883 5885 Website: www.wda.gov.sg Majlis Ugama Islam Singapura (MUIS) Singapore Islamic Hub 273 Braddell Road Singapore 579702 Tel: 6359 1199 Website: www.muis.gov.sg Singapore Indian Development Association (SINDA) 1 Beatty Road Singapore 209943 Tel: 6298 5911 Website: www.sinda.org.sg Chinese Development Assistance Council (CDAC) CDAC Building 65 Tanjong Katong Road Singapore 436957 Tel: 6841 4889 Website: www.cdac.org.sg The Eurasian Association, Singapore (EA) Eurasian Community House 139 Ceylon Road Singapore 429744 Tel: 6447 1578 Website: www.eurasians.org.sg SHARE Programme Community Chest National Council of Social Services Ulu Pandan Community Building 170 Ghim Moh Road #01-02 Singapore 279621 Tel: 1800 210 2600 Website: www.comchest.sg

ANNEXES Annex A TYPES OF PAYMENTS THAT ATTRACT F CONTRIBUTIONS

The table below is a general guide as to when F is payable Type of Payment

Anniversary Cash Award Annual Wage Supplement/ Bonus Attendance Allowance Commission Cost of Living Allowance Dirt Allowance Education Allowance

Education/Training Reimbursement Entertainment Allowance Extra Duty Allowance

Festival Allowance Finders Introduction Fees Gratuity

Grooming Allowance Hair Cut Allowance

Description

F Payable

Payment to employees on company’s anniversary Payment to employees at the end of the financial year Payment for good work and attendance Payment to employees based on percentage of sales achieved Payment as part of employee’s wages

Yes

Payment for performing field duties Contractual payment for education of employee’s children Payment made under employee’s selfimprovement programme Reimbursement of course and examination fees as part of employee’s training programme Reimbursement for entertaining company’s clients Payment made for extra work done; e.g. night duty, overtime, public holiday, acting allowance etc. Cash gift (e.g. hongbao) given to employees during festive season Payment to employees for introducing workers to company Payment to employees for good service while still in employment Payment to employees upon termination of employment, i.e. compensation in nature Payment to employees for enhancement of appearance Payment to employees for enhancement of appearance

Yes Yes

Yes Yes Yes Yes

No No

No Yes

Yes No Yes No Yes Yes

Handphone & Pager Allowance Handphone & Pager

Payments to employees

Forms part of the employer’s expenditure & paid directly to third party e.g. service provider Handphone & Pager Reimbursement for actual expenses Reimbursement incurred for official purposes Holiday Allowance Fixed payment to employees for vacation Variable sum given as reimbursement for holiday expenses incurred by employees Housing/Rental Subsidy Payment to employees as housing rent Housing Reimbursement Forms part of the employer's expenditure and paid directly to third party e. g. landlord Incentive Allowance Cash payment incentive Incentive in kind e. g. token gifts Laundry Reimbursement Reimbursement for laundry expenses to uniformed employees Laundry Allowance Payment for laundry expenses for personal clothing of employees Leave Pay Payment in lieu of leave Long Service Award Cash award for long service Cash award given to employees with at least 5 years' service and every subsequent period of not less than 5 years' service, i.e. 5,10,15 and so on, and the cash award does not exceed the employee’s Ordinary Wages for the month in which it is given. If the Long Service Award exceeds the Ordinary Wages, F is still payable on the amount in excess of the Ordinary Wages. Maternity Allowance Payment to female employees during confinement and in addition to monthly salaries Maternity Subsidy Reimbursement paid under company's maternity expenses scheme Meal Allowance Monthly lump sum payment to employees Meal Reimbursement Reimbursement for staying beyond working hours i.e. overtime Personal Clothing Payment to employees to enhance Allowance appearance Probation Period Pay Wages for employees on probation Productivity Award Cash award for staff productivity

Yes No

No Yes No Yes No

Yes No No Yes Yes Yes No

Yes

No Yes No Yes Yes Yes

Gifts in Kind

Award in kind e.g. token gifts

No

Sales Performance Award Service Charge

Payment for attaining sales target

Yes

Collection by hotels/restaurants and distributed as part of wages to employees

Yes

Staff Welfare Benefits

Gifts in kind to employees on their marriage or birth of their children Payment for stand-by duties Wages paid to employees/ed students, including students who work after completing their “A” level examinations Wages paid to ed students as follows: a. School students working during their gazetted school holidays. (N.A. for tertiary students) b. 'N' & 'O' level school leavers working during the gazetted school holidays. c. "A" level students working during school holidays before their "A" level examinations. ed students of any overseas tertiary education institution who are employed as follows: a. The student is employed without a letter from the tertiary education institution stating that the training is required as part of the student’s curriculum b. The student is employed with  the employer submitting a letter from the tertiary institution to FB, stating that the training is required as part of the student’s curriculum, and

No

Stand-by Allowance Student Pay



the training period does not exceed 6 months

Yes Yes

No

Yes

No

Termination Benefits

ed students employed during vacation or term, under training programme approved by the following institutions: a National University of Singapore b. Nanyang Technological University c. Singapore Management University d. Nanyang Polytechnic e. Ngee Ann Polytechnic f. Singapore Polytechnic g. Temasek Polytechnic h. Republic Polytechnic i. Institute of Technical Education

No

Retirement gratuity, retrenchment pay, exgratia payment, salary in lieu of notice, severance pay, compensation for loss of employment Payment of temporary lay-off benefits

No

Yes

Tips

Cash collected from customers to augment wages of hotel and restaurant employees

Yes

Transport Allowance

Payment to subsidise employees’ transport expenses Reimbursement for travel in the line of official duty Reimbursement for travel between home and workplace beyond normal working hours e.g. rest days and public holidays Reimbursement for travel from home/office to the place of assignment (not the normal place of work) Reimbursement for actual transport expenses where the employer is obliged to provide transport for employees and where the transport is not available Payment awarded for injuries under the Workmen’s Compensation Act

Yes

Workmen's Compensation

No No

No

No

No

Annex B CALCULATING ADDITIONAL WAGE (AW) CEILING

From 1 September 2011, the Ordinary Wage Ceiling was revised from $4,500 to $5,000 per month. Therefore, the AW Ceiling for 2011 and 2012 are revised. A copy of the FAQ and examples on the computations of the revised AW Ceiling is attached.  

FAQ Examples on the Computations

Annex C PAYING F ON BONUSES

Contractual bonus is the bonus stated in the employment contract or offer of appointment. Discretionary bonus is the bonus not stated in the employment contract or offer of appointment, i.e. at the discretion of the employer. 1. Contractual Bonus

Where the employee is contractually entitled to the bonus, apply the F rate for the month in which the bonus is contractually due. For example, if the letter of appointment states that a bonus is payable in December 2010, apply the F rate for December 2010. The F contribution is due on 14 January 2011. If the employee is moving on to the next age group, apply the F contribution rate for the month in which the bonus is due. Please see the example below:

Employee A reaches 50 years of age on 13 December 2010

Month contractual bonus is due

F contribution rate

December 2010

Apply the December 2010 rate for employees below 50 years

January 2011

Apply the January 2011 rate for employees above 50-55 years

2. Discretionary Bonus

Where the bonus is discretionary, apply the F rate for the month in which the discretionary bonus is declared. The discretionary bonus is declared when all four conditions below are met: a. The employer makes the decision to pay the discretionary bonus to the employee on or before the last day of the month; b. The amount of money to be paid as discretionary bonus is fixed on or before the last day of the month; c. The employer intends to pay the discretionary bonus on or before the last day of the month; and d. The employee receiving the discretionary bonus was told of the above information on or before the last day of the month. Example 1 (all FOUR conditions are met) Declaration and payment of discretionary bonus

F contribution rate

Declaration: 29 December 2010 Payment: 29 December 2010

Apply the December 2010 rate

1. Employer decides to give Employee A a discretionary bonus on 16 December 2010. 2. He fixes the amount of bonus at $5,000 on 16 December 2010 3. He intends to pay the bonus on 29 December 2010. 4. He informs Employee A about it on 29 December 2010.

Example 2 (not all FOUR conditions are met) Declaration and payment of discretionary bonus

F contribution rate

1. Employer decides to give Employee A a discretionary bonus on 16 December 2010. 2. He fixes the amount of bonus at $5,000 on 16 December 2010.

Declaration: 18 January 2011 Payment: 18 January 2011

Apply the January 2011 rate

3. He intends to pay the bonus on 18 January 2011. 4. He informs Employee A about it on 18 January 2011.

If the employee is moving on to the next age group, apply the F contribution rate for the month in which the discretionary bonus is declared and paid. Please see the example below: Example 3 (moving on to the next age group) Declaration and payment of discretionary bonus

Employee A reaches 50 years of age on 13 December 2010

F contribution rate

Declaration: Apply the December 29 December 2010 2010 rate for employees Payment: below 50 years 29 December 2010 Declaration: 18 January 2011 Payment: 18 January 2011

Apply the January 2011 rate for employees above 50-55 years