CONTRIBUTIONS OWING TO CPF BOARD

Dr Toh Chin Chye asked the Acting Minister for Labour what was the number of contributions owing to the Central Provident Fund Board (i) for three to six months and (ii) for more than six months, for the year 1984 and for the period January-July 1985.

Mr Lee Yock Suan: In 1984, there were 77,390 employers who made contributions to the CPF on behalf of their employees. Of these employers, 939 or 1.2% were three to six months late in making their contributions, and 305 or 0.4% were more than six months late.

For the first half of this year, 1,155 or 1.5% of the employers were three to six months late in making their CPF contributions, and 307 or 0.4% of the employers were more than six months late.

From the above figures, it would appear that the vast majority of employers have been able to make their CPF contributions on time or not more than two months after the due dates. Only a very small percentage have had to be taken to court to enforce payments. Of these cases, the employers have paid or are still paying up their arrears. Only a very small sum, 0.1% of the amount to be recovered under court order, has been written off so far,

Whilst safeguarding the interest of its members, the CPF Board is careful to allow defaulting employers time to pay and not to push them over the brink.

Dr Toh Chin Chye (Rochore): Sir, I thank the Minister for his statistics. In view of the downturn in the economy, does the Central Provident Fund Board have any plans to make payments much easier? Could the Minister also state what are the fines that have been imposed on late payers?

Mr Lee Yock Suan: Sir, if the employers are late in payment and if they are taken to court, the court would allow them time to pay over several instalments. So I think this is one way in which assistance is provided to employers to help them pay the CPF.

As for the fines (I am speaking from memory here), I think it will range to about $10,000, but I do not have the actual figures. If the Member would like to have the information, I will supply it to him in writing.

Dr Toh Chin Chye: Is the Minister aware that there is a penalty for late payments directly payable to the CPF?

Mr Lee Yock Suan: Interest on late payment is charged at 1 1/2% per month.