SINGAPORE: About 2,700 employers, or 2% of all active employers, did not pay or underpaid their employees’ CPF from January to September 2012.
This affected some 6,000 employees.
In addition, an average of 3,000 employers each month pay CPF contributions late.
In a written parliamentary reply to MP for West Coast GRC Foo Mee Har, Acting Manpower Minister Tan Chuan—Jin said 80 per cent of these errant employers were small companies hiring ten or fewer employees.
Non—compliance was more common in the cleaning, F&B, retail and security industries, and workers affected tend to be in the lower—income group.
Mr Tan said some employers have the misconception that CPF is not payable for part—time and casual employees.
There are others who wilfully flout the law to reduce business costs.
Employers who fail to pay CPF according to the law can be fined up to S$2,500 per charge for the first conviction, and up to S$10,000 per worker per month for repeat offenders.
Directors, managers, secretaries or officers of the companies may also be prosecuted for CPF offences.
More than 5,200 employers have had their offences compounded and paid about $1.7 million in fines from January to September 2012.
The government is stepping up enforcement activity this month, increasing inspections ten—fold from 500 to 5,000 a year.
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