Changes to Central Provident Fund (CPF) Contribution Rates and Auto-Inclusion Scheme (AIS)
As part of the Singapore government’s push for retirement adequacy, the Central Provident Fund (CPF) contribution rate for workers aged 55 to 70 and earning more than S$750 will be adjusted upwards come 1 January 2022.
The new contribution rates will see a one per cent increase in both the employer’s and employee’s contribution rates for workers above 55 to 65 years old. For workers above 65 to 70 years of age, the employer’s contribution rate will increase half a per cent while the employee’s contribution rate will increase by one per cent.
The following table summarises the new contribution rates:
Do be aware of the new contribution rates, or you may risk penalties for submitting contributions at incorrect rates. Alternatively, to reduce such headaches and mistakes, you may want to outsource HR payroll services to a payroll services provider. Professional service providers would usually keep abreast of these changes and would be able to assist you to comply with new regulations.
Changes in Auto-Inclusion Scheme (AIS) to IRAS
By the end of 2022, IRAS will decommission its AIS Offline Applications (including the Validation & Submission Java Application). In its place, companies will be required to use payroll solutions that support direct AIS submissions to IRAS. This change will be effective from Year of Assessment 2023.
If your company is currently using the AIS Offline Applications, IRAS had advised such companies to implement payroll software solutions that can be integrated with the AIS Application Programming Interface (API) Service with IRAS. It is best to start the search process now so that you can iron out any integration or transition issues early.
Finding a Payroll Services Provider Singapore
Many payroll services provider in Singapore are already prepared for these changes to the CPF contribution rates and AIS submissions. If you are looking for a service provider to meet these new requirements, find one with a strong track record in HR and payroll services. Better yet, seek out one that also provides cloud accounting services so that you can track not just your employees’ payroll information but your company’s real-time financial data from wherever you are.
A great payroll service provider will also help you make the transition to new software solutions seamless. In addition, they should have a strong team that can provide a one-stop service solution for all your HR and Payroll as well as other business advisory needs.