CDAC

The CDAC Fund is used to fund CDAC’s programmes and assistance schemes to help the students, workers and families from the lower income groups overcome their challenges and achieve social mobility.

Needy students, low-wage workers, low-income families, and seniors are our key beneficiaries.
We help students to realise their potential; workers to secure jobs and upgrade their skills; families to be self-reliant and more resilient; and seniors to stay active and connected with the community.

Employers are expected to deduct the CDAC contributions from their employees’ wages, unless the employee submits an opt-out form to CDAC.

Employees refer to Singapore Citizens and Permanent Residents, belonging to the Chinese community.

 Effective 1 January 2015

*Gross Wages/Month	Minimum Monthly Contribution to CDAC
≤ $2,000	$0.50
> $2,000 to $3,500	$1.00
> $3,500 to $5,000	$1.50
> $5,000 to $7,500	$2.00
> $7,500	$3.00

*Gross wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowances (e.g. food, shift or transport allowances), commission and bonus.

CDAC adopts a consistent approach as the CPF Board on the types of payment/ remuneration that require CDAC contribution.

Please refer to the CPF Board website for the types of payment/ remuneration to employees that attract payment.

In 2020, CDAC reached out to 18,000 lower-income households through educational and development programmes, bursary and subsidy schemes for needy students, fulfilling ageing activities for seniors and financial assistance and employment support for families.

CDAC continues to support students and families through broad-based programmes to help them strive for upward social mobility. At the same time, CDAC will also focus on deepening help for the more vulnerable families by providing holistic support to help them.

Should you wish to make changes to your monthly contribution, please fill in the relevant form below and submit it to CDAC via email (Email: ) or post:

• Increase contribution amount
• Opt out of contribution
• Rejoin to contribute after opting out
• Voluntary contribution

The employer can effect the changes immediately after the form has been submitted to CDAC.

For further enquiries, you may call our hotline at 6841 4889 or email to .

No. An employee is required to contribute regardless of his monthly wage.

CDAC adopts a consistent approach as the CPF Board on the types of employees who are not required to make payment.

In general, those who are not required to contribute include work pass holders and students belonging to the following groups:

1. Registered students of the following schools and Madrasahs (except for students who have completed the GCE “A” level examination or its equivalent) working during the school holiday period stated in the Ministry of Education website (with effect from 1 February 2018).
   1. Government and Government-Aided Schools
   2. Independent Schools
   3. Specialised Independent Schools
   4. Specialised Schools
   5. MOE-funded Special Education Schools
   6. Mountbatten Vocational School
   7. Madrasahs

      – Madrasah Alsagoff Al-Arabiah
      – Madrasah Al-Arabiah Al-Islamiah
      – Madrasah Irsyad Zuhri Al-Islamiah
      – Madrasah Aljunied Al-Islamiah
      – Madrasah Al-Ma’arif Al-Islamiah
      – Madrasah Wak Tanjong Al-Islamiah

Please refer to sis.moe.gov.sg for the list of schools under (a) to (d) and the Ministry of Education website for the list of schools under (e).

2. Matriculated or registered students of the following institutions and employed for training approved by their institutions during the school term and/or school holiday period:

   With effect from 1 January 2018
   a. any university whose function of providing university education is determined by any written law
   b. the Institute of Technical Education, Singapore, established by the Institute of Technical Education Act
   c. a polytechnic established by any written law

Please refer to the Ministry of Education website for the list of institutions under the section “Autonomous Universities”, “Institute of Technical Education” and “Polytechnics”.

With effect from 1 February 2018
a. Specialised Schools
b. MOE-funded Special Education Schools
c. Mountbatten Vocational School

Please refer to sis.moe.gov.sg for the list of schools under (a) and the Ministry of Education website for the list of schools under (b).

3. Matriculated or registered students of any overseas tertiary education institution and are required by the overseas tertiary education institution to undergo training in Singapore for a period of not more than 6 months. With effect from 1 February 2018, students are required to submit to their employers a written confirmation from the overseas tertiary education institution to indicate that they are —

(i) matriculated or registered students of the overseas tertiary education institution; and
(ii) required by the overseas tertiary education institution to undergo training in Singapore.

4. Matriculated or registered students of any private education institution enrolled in a full-time programme subsidised by the Ministry of Education and employed for training approved by their institutions (with effect from 1 February 2018):

a. All full-time diploma programme programmes at LASALLE College of the Arts (LASALLE) and Nanyang Academy of Fine Arts (NAFA)
b. Bachelor of Music programme offered by the Royal College of Music, London, at NAFA
c. All full-time Bachelor’s degree programmes offered by Goldsmiths College, University of London, at LASALLE

Please refer to the Ministry of Education website for the list of programmes under the section “LASALLE College of the Arts & Nanyang Academy of Fine Arts”.

Under the Central Provident Fund Act (Chapter 36, Section 76(3)), employers are required to automatically deduct contributions from the wages of their Chinese employees, unless the employees opt-out from the scheme. (Refer to Q6 on the opt-out procedures).

The CDAC Opt-Out Form requires the endorsement of the employer. The purpose is for the employer to take note of the opt-out and hence can stop the deduction once the form is submitted. If your wage is still being deducted of the CDAC contribution, please check with your employer. Your company could seek for refund on the contributions if there is any excess/ error. (Refer to Q23 to Q26 on the refund procedures)

Yes. As contribution to the CDAC Fund is on a per employment basis, you would have to submit a new Opt-Out Form to your new employer and forward the completed form to CDAC if you wish to continue to opt-out from the scheme.

Yes, CDAC has been granted status of an Institution of a Public Character (IPC). Your donation to the CDAC Fund made from 1 January 2016 to 31 December 2023 is entitled to 2.5 times tax deduction. The tax deduction will be automatically reflected in your IR8A statement.

You may call our hotline at 6841 4889 or email your queries to .

For employees with double-barrelled race, the employer can refer to the first component of the double-barrelled race to ascertain which SHG fund your employee should contribute to.

With reference to Q14, the employee will have to contribute to the Singapore Indian Development Association Fund (SINDA). However, as all working Muslims are subjected to contribute to the Mosque Building and Mendaki Fund (MBMF), your employee will also need to contribute to the MBMF. Employees who do not wish to contribute to either one of the Fund will have to submit the Opt-Out Form to the respective agency.

Please refer to Annex for the contributions to be made by employees with multiple races or religion.

The employer can stop the CDAC contribution of the employee immediately after the Opt-Out Form is sent out. A copy of the Opt-Out Form should be filed by the employer for record. No acknowledgement will be given by CDAC upon receipt of the Opt-Out Form.

The employer should make up for the contribution that was not paid or underpaid in the next contribution submission to CPF Board.

The employer shall pro-rate the contribution based on the gross wages paid to the employee for that period.

Yes, the CDAC contribution is on a per employment basis.

Yes. The employer shall compute the contribution rate based on the gross wages of the employee received in the month.

No. The employee can choose to contribute for one company and opt-out from the rest of the companies he/she is working for. The employee may also choose to contribute to the CDAC Fund through the various companies.

CDAC contributions are not mandatory for Singapore Citizens or Permanent Residents working overseas. However, the employee can choose to make voluntary contributions to the CDAC Fund.

Yes, after CDAC has verified that the contributions have indeed been paid in error to the CDAC Fund.

You may submit a written request on your company’s letterhead, together with copies of CPF Form 90 and the Contributions Details report. Your letter should state the reason for the refund, amount to be refunded as well as the cheque payee name.

Please note that the period for any refund of amount paid in error is one year from the date on which the CDAC contribution was paid by an employee.

Any refund on excess contributions shall be paid to the company. The company would then make the adjustment to refund their employee on the excess contributions to the CDAC Fund.

CDAC will process the refund upon receipt of the employer’s letter and copies of CPF Form 90 and the Contributions Details report.