The Central Provident Fund (CPF) is a compulsory savings scheme for Singaporeans and Permanent Residents (PRs). It helps you save for your retirement, healthcare, and housing needs. If you fail to make your CPF contributions on time, you will be charged late payment penalties.
Late Payment Penalties
The late payment penalty for CPF contributions is 2.5% per month, compounded monthly. This means that if you are one month late in making your payment, you will be charged a penalty of 2.5%. If you are two months late, you will be charged a penalty of 5.025% (2.5% + 2.5% * 1.025). The penalty will continue to increase each month until you make your payment.
How to Pay CPF Late Payment
There are three ways to pay your CPF late payment:
- Online: You can pay your CPF late payment online using the CPF website or mobile app.
- AXS machine: You can pay your CPF late payment at any AXS machine.
- Over-the-counter: You can pay your CPF late payment at any CPF Service Centre.
Step-by-Step Guide to Paying CPF Late Payment Online
- Go to the CPF website or mobile app.
- Log in to your CPF account.
- Click on the “Make a Payment” tab.
- Select the type of payment you want to make.
- Enter the amount you want to pay.
- Select the payment method you want to use.
- Click on the “Submit” button.
Common Mistakes to Avoid
When paying your CPF late payment, it is important to avoid the following mistakes:
- Paying the wrong amount: Make sure you pay the correct amount of late payment penalty. You can calculate the amount of late payment penalty you owe using the CPF website or mobile app.
- Paying late: If you pay your CPF late payment after the due date, you will be charged an additional late payment penalty.
- Not paying at all: If you do not pay your CPF late payment, you will be in default and may face legal action.
Conclusion
Paying your CPF late payment is simple and can be done online, at an AXS machine, or over-the-counter. By following the steps outlined in this article, you can avoid paying additional late payment penalties.
