Heftier fine, jail for employers that flout CPF rules

Employers who do not pay, underpay or are late in making contributions to their workers' Central Provident Fund (CPF) accounts could be jailed or face stiffer fines, or both, under a new Bill introduced in Parliament on Monday. -- ST FILE PHOTO:&nbsp
Employers who do not pay, underpay or are late in making contributions to their workers' Central Provident Fund (CPF) accounts could be jailed or face stiffer fines, or both, under a new Bill introduced in Parliament on Monday. -- ST FILE PHOTO: NG SOR LUAN

Employers who do not pay, underpay or are late in making contributions to their workers' Central Provident Fund (CPF) accounts could be jailed or face stiffer fines, or both, under a new Bill introduced in Parliament on Monday.

First-time offenders may be jailed for up to six months under the Central Provident Fund (Amendment) Bill. The maximum fine for this group is doubled from $2,500 to $5,000 for each conviction, with a minimum fine of $1,000.

Repeat offenders could be jailed for up to 12 months. There is no change to the maximum fine of $10,000, but there will be a minimum fine of $2,000.

These tough measures follow the CPF Board's announcement in May this year that it recovered a staggering $293 million last year in arrears from errant companies - mostly small and medium enterprises in cleaning, security and food and beverage sectors - for more than 200,000 workers last year.