CPF Board gets $516m in arrears from employers
THE Central Provident Fund (CPF) Board recovered about $516 million in CPF arrears last year, benefiting over 360,000 employees.
The CPF arrears recovered were from underpayment, non-payment and late payment of CPF contributions by employers, the CPF Board said in a statement yesterday.
Of the total amount recovered, $15.2 million were from cases of underpayment or non-payment which was recovered from 1,840 employers. This benefited 14,708 employees.
One of the cases, which had one of the highest amounts of CPF arrears recovered, was discovered through a complaint on non-payment of CPF contributions lodged by a driver from a logistics company.
Investigations showed that the firm wrongly classified its drivers under a contract for service and hence, did not pay them CPF contributions.
After reviewing relevant facts, the Board ruled that the drivers were in fact working as employees of the company.
About $2 million in CPF arrears over eight years for 70 drivers were recovered, helping them build up their CPF savings to meet their retirement, housing and healthcare needs.
The remaining $500.8 million recovered were late CPF contributions from about 5,600 employers each month last year. Most of the late payments were recovered within a month.
The Board said there were 36 convictions for non-payment and underpayment of CPF, and 237 convictions for late payment last year. All convicted employers were fined and ordered to pay the CPF arrears by the State Court.