Can a company pay allowance instead of basic pay avoding paying CPF for pay in lieu of notice?

Question

I resigned from a company, then the company give me an early release from my contractual 1 month by paying me the salary in lieu of notice, but it was in allowance not the basic pay packet, they avoided paying CPF in this way, can they do this? Is it allowed under the law?

Answer 1

The company want to call it allowance but monies in lieu of notice is considered as salaries... the company should classify it properly!

All salaries need CPF contribution, unless the amount is lesser than the amount stipulated by the board. please check at cpf website:-

http://www.cpf.gov.sg

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you may call people at cpf to enquiry also.