Salaried workers will expect to be paid in full and on time by their employers. Furthermore, in Singapore, all Singapore Citizens and Permanent Residents (PRs) who work for a company are also eligible to receive CPF contributions.
However, it might not always work out this way. A company may be short of cash and owe their employees backpay in the form of salaries as well as CPF contributions. Some companies may also go bankrupt and owe unpaid salaries/CPF contributions.
Either way, it’s important for employees to know their rights and what they should do when an employer owe them unpaid salaries or CPF contributions. With that, here are 5 things employees can do if they find themselves in such a scenario.
#1 Gather Evidence On Amounts Owed
It’s important that employees first gather evidence on the amount they are owed. Any supporting documents, such as payslips, income tax returns and their employment contract will support a claim against employers.
For CPF contributions that haven’t been paid and are owed, employees can use a CPF calculator to verify the CPF contribution rates that are applicable to them.
All this evidence will be useful when it comes to supporting their case and why they are owed the amount in question.
Read Also: Complete Guide To Employer’s CPF Contributions In Singapore (2025)
#2 Contact The Employer
Before employees raise a claim, it’s crucial that they contact their employer first to see if there has been either a misunderstanding or some other legitimate reason for non-payment.
Trying to sort out the issue amicably between employee and employer is the first port of call before taking further action with any relevant boards or authorities.
#3 File A Claim With MOM
If an agreement cannot be reached between employer and employee, regarding either unpaid salaries or unpaid CPF contributions, the next typical step is to raise a claim.
For unpaid salaries, this can be by filing a claim with the Tripartite Alliance for Dispute Management (TADM) at the Ministry of Manpower (MOM).
For unpaid CPF contributions, employees can lodge a report with the CPF Board. They will then initiate an e-resolution process that last two weeks, involving you and your employer. If no resolution can be found the CPF Board will follow up with your employer to verify the claims and additional documentary evidence may be required.
From there, if either CPF or the MOM determines there is a case to answer then legal action will be taken against the employer.
Read Also: Managing Notice Period: Understanding Employee Entitlements When They Are Leaving Your Business
#4 Be Timely With Filings
Even if employees do file a claim, it’s important to keep in mind that filing it promptly is important. According to the CPF Board, if employees file their claims early, they have a much higher chance of recovering CPF contributions owed to them.
Outlining the situation in a clear manner, supported by documentary evidence, will also help their claims. As for non-payment of salaries, employees will need to file a claim within one year of the non-payment according to the MOM.
If a salary isn’t paid within seven days of it being due, an employer can be considered to have breached the terms of employment, according to the MOM.
#5 Don’t Forget Interest Due On Late CPF Payments
For late CPF payments, employers will be on the hook for any outstanding CPF contribution payments plus the outstanding interest, if it is more than 14 days late. This interest is charged at 18% per annum (p.a.) by the CPF Board.
The minimum interest payable is $5 per month but could be a financial hit to employers if the CPF contribution is a large nominal amount, especially if multiple employees are impacted. For example, a CPF contribution payment of $1,000 per month will incur a monthly additional $15 in interest payments from the employer if it’s late. If five employees are affected for 6 months, employers will have to fork out an additional $2,700 in interest payments.
Read Also: 10 Types Of Employee Payments (Apart From Salary) That Businesses Need To Pay CPF For
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