Contributions to self-help groups - Singapore

Contributions to self-help groups - Singapore

CPF Board

https://www.cpf.gov.sg › employer-obligations › contri...

As an employer, you're expected to deduct your employee's contributions to self-help group funds from your employee's wages.

Self-Help Groups - Singapore

Self-help groups (SHGs) in Singapore are community-based organizations that provide assistance and support to individuals and families of different ethnic communities. They aim to promote social cohesion and build community resilience by organizing cultural and community events, fostering inter-ethnic understanding, and encouraging volunteerism and community involvement.   

Some of the well-known Self-Help Groups in Singapore include:

• Chinese Development Assistance Council (CDAC): Focuses on the Chinese community, providing programs and services to help individuals and families facing challenges.

  Opens in a new windowwww.cdac.org.sg

   Chinese Development Assistance Council (CDAC), Singapore

• Majlis Ugama Islam Singapura (Muis): Serves the Muslim community, offering various initiatives to support their religious, social, and educational needs.   

  Opens in a new windowwww.mccy.gov.sg

   Majlis Ugama Islam Singapura (Muis), Singapore

• Singapore Indian Development Association (SINDA): Works towards the progress of the Indian community, providing educational, social, and economic assistance.   

  Opens in a new windowwww.giving.sg

   Singapore Indian Development Association (SINDA)

• Eurasian Association (EA): Represents the Eurasian community, promoting their unique culture and heritage while providing support and opportunities.   

  Opens in a new windowwww.eurasians.sg

   Eurasian Association (EA), Singapore

These SHGs offer various programs and services, including tuition and mentorship programs, financial assistance, counseling and guidance services, and community outreach initiatives. They play a vital role in supporting individuals and families in need and promoting social harmony in Singapore.   

Here's a breakdown of the Self-Help Groups (SHGs) in Singapore, along with their key contributions:

1. Chinese Development Assistance Council (CDAC)

• Focus: Uplifting the Chinese community, particularly those from lower-income backgrounds.

• Key Contributions:

  • Education: Tuition programs, bursaries, mentorships, and digital literacy initiatives to bridge the educational gap.

  • Financial Assistance: Help with living expenses, job loss, medical bills, and childcare costs.

  • Community Support: Organize events, workshops, and health programs to foster social cohesion and well-being.

  • Volunteerism: Encourage Chinese Singaporeans to volunteer and contribute to their community.

2. Majlis Ugama Islam Singapura (Muis)

• Focus: Serving the religious, social, and educational needs of the Muslim community in Singapore.

• Key Contributions:

  • Religious Guidance: Provide Islamic education, guidance, and resources.

  • Community Development: Build and manage mosques, promote social harmony, and offer support services.

  • Financial Aid: Distribute zakat funds, offer financial assistance, and support needy families.

  • Education: Provide scholarships, educational programs, and support for students.

3. Singapore Indian Development Association (SINDA)

• Focus: Uplifting the socio-economic status of the Indian community.

• Key Contributions:

  • Education: Tuition programs, bursaries, mentorships, and skills development programs.

  • Financial Assistance: Help with living expenses, job loss, medical bills, and childcare costs.

  • Community Support: Organize cultural events, workshops, and health programs.

  • Social Mobility: Help Indian Singaporeans improve their social and economic standing.

4. Eurasian Association (EA)

• Focus: Representing the unique interests of the Eurasian community in Singapore.

• Key Contributions:

  • Cultural Preservation: Promote Eurasian culture, heritage, and traditions.

  • Education: Provide educational programs, bursaries, and support for students.

  • Community Building: Organize events, workshops, and activities to foster a sense of community.

  • Advocacy: Represent the interests of Eurasians in Singapore.

Additional Points:

• Collaboration: The SHGs often collaborate with each other and government agencies to maximize their impact.

• Funding: The SHGs are funded through government grants, donations, and contributions from their respective communities.

• Volunteerism: The SHGs rely heavily on volunteers to deliver their programs and services.

Overall, the Self-Help Groups play a crucial role in promoting social cohesion, building community resilience, and ensuring that all Singaporeans have the opportunity to succeed.

As an employer, you're expected to deduct your employee's contributions to self-help group funds from your employee's wages. 

Yes, that's correct. As an employer in Singapore, you are required to deduct your employee's contributions to Self-Help Group (SHG) funds from their wages. This is mandated by the Singaporean government to support the various SHGs that provide assistance and resources to different ethnic communities.

Here's a breakdown of what you need to know:

1. Which Employees Contribute:

• Chinese Development Assistance Council (CDAC): All working Chinese Singapore Citizens and Permanent Residents.

• Eurasian Community Fund (ECF): All working Eurasian Singapore Citizens and Permanent Residents.

• Mosque Building Mendaki Fund (MBMF): Every working Muslim in Singapore, including foreign workers and Permanent Residents.

• Singapore Indian Development Association (SINDA): All working Indians in Singapore who are Singaporeans, Permanent Residents, or Employment Pass holders. This includes individuals from various ethnic groups originating from the Indian subcontinent.

2. Deduction Process:

• Automatic Deduction: Contributions to SHG funds are typically deducted automatically from your employee's wages each month.

• CPF Board: The Central Provident Fund (CPF) Board is the collecting agent for these contributions. They are deducted together with the employee's share of CPF contributions.

• Contribution Rates: The contribution rates vary depending on the employee's monthly remuneration and the specific SHG. You can find detailed information on the respective SHG websites or the CPF website.

3. Employee Opt-Out:

• Opt-Out Option: Employees may opt out of contributing to SHG funds by completing the relevant forms from the respective SHG's website.

• Employer Endorsement: The opt-out form usually requires your endorsement as the employer.

• MBMF Exception: For MBMF, deductions can only stop after the employee receives an Opt-out Certificate.

4. Employer Responsibilities:

• Accurate Deductions: Ensure you deduct the correct SHG contributions based on your employee's eligibility and salary.

• Timely Remittance: Submit the collected SHG contributions to the CPF Board along with CPF contributions.

• Record Keeping: Maintain proper records of SHG deductions for each employee.

• Communication: Inform your employees about SHG contributions and their right to opt out.

5. Resources:

• CPF Website: Provides comprehensive information on SHG contributions, including eligibility, contribution rates, and payment procedures.

• SHG Websites: Offer specific details about each SHG's mission, programs, and contribution rates.

By fulfilling your responsibilities as an employer regarding SHG contributions, you play a vital role in supporting these organizations and their efforts to uplift the community.