The CPF Board will discontinue the Direct Debit ‘Last Day Deduction’ schedule effective 1 April 2025.
Currently, under the ‘Last Day Deduction’ schedule:
CPF submissions made between the 1st and 12th of the month result in Direct Debit deductions on the 14th of the month, or the next working day if the 14th falls on a Saturday, Sunday, or Public Holiday.
CPF submissions made after the 12th of the month result in Direct Debit deductions 2 working days after submission.
What’s changing?
From 1 April 2025, all Direct Debit deductions from employers' bank accounts will be standardized to occur 2 working days after CPF submission, regardless of submission date.
How Does This Benefit Employers?
This change provides greater flexibility, allowing employers to better manage their CPF submission timing and bank account deductions based on their financial planning and operational needs.
Action Required:
To ensure a smooth transition, employers are advised to maintain sufficient funds in their bank accounts, as CPFB will proceed with Direct Debit deductions within 2 working days from the CPF submission date.
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