Asked by Anonymous
Updated 1h ago
Just wondering why CPF contributions take so long to be credited into our bank account
I believe you mean after salary paid then employer pay to our CPF account.
According to CPF:
Empolyer must contribute our CPF by end of the month with a grace period of 14 days to pay it.
If the 14th day falls on a Saturday, Sunday or public holiday, employer can pay by the next working day.
Eg. For May 2019 salary, if you receive salary by trhe first 7 days of the June, then your employer has up to the 14th June to contribute to your CPF account. Otherwise, you can write in / call CPF to lodge a complain.
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CPF contributions are due at the end of each month. However, employers are given a grace period of 14 days after the end of each month to pay the CPF contributions for their employees. If the 14th falls on a weekend or public holiday, the CPF contribution should be paid by the next working day. Thereafter, depending on the mode of submission of contribution details, it may take three to seven working days to credit the amount to your CPF accounts. Hence, your CPF contributions would be credited into your CPF accounts by approximately the 3rd week of the following month after your salary is paid.
From business point of view; cash flow is always a important component. They will try to make payments at the end of grace period wherever possible just so they can earn interests + buffer themselves in case anything crops up. Hence if you do a quick calculation as below;
Sunday, 27th Jan = payday
Last day for CPF e-submission and payment is therefore the next working day, Monday.. 11th Feb 2019.
On Monday 11th Feb, company submitted all required details to CPF. Direct debit however, does not take place immediately. The deduction date is actually from 3rd working day of e-submission. This means actual deduction will happen on Thurs, 15th Feb 2019.
Now, if you log into your CPF today, you will see that your CPF transactions page have a statement right at the bottom stating "This statement does not include contribution(s) received by the board after 10th June 2019 (today is 13th June, as reminder); so CPF reflects the contribution in your a/c, 3 working days after direct debit is done.
So in your case, direct debit was done on Thurs, 15th Feb.. your employer's
contribution appeared on 18th Feb is already on time on target. https://www.cpf.gov.sg/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/direct-debit-and-other-payment-modes