In 2016, a record high of S$635.1 million was collected by the Central Provident Fund (CPF) Board from employers. This is an increase of S$119 million as compared to 2015 (see news release from the CPF.) Over the years, the CPF Board has continuously strengthened its audit process to ensure timely and accurate payment of CPF contributions. This includes an automated system to detect late payments as well as conducting proactive audits on employers to ensure that the proper CPF contributions are made for their employees.
The enforcement efforts are targeted on high-risk industries and firms; investigations also occur based on complaints lodged by employees, ex-employees, and so forth. Given the current environment, employers should consider a fresh review of their CPF processes to avoid noncompliance penalties.