ICT MUP questions

[Lisianthus]

Hi All

I joined a foreign company recently and will need to go for ICT soon.
The usual have been done, like submitting for make up claim and what not.

I will be going for 2 weeks ICT so by right company will be paying half of my salary and SAF pay the other half.
But as this is a good year, company wants to give me a 'bonus' for good performance and says they are willing to pay me full if it means I am able to receive it, they are not sure as well.

So eg. $3000 salary = $1500 from company + $1500 from mindef
meaning company wants to give me $1500 as 'bonus'
means same thing, company will pay me same amount as every month, but still receive $1500 from mindef.

Will there be any law breaking or complications?
Does this also mean I have to pay more CPF?

 

[reddevil0728]

Hi All

I joined a foreign company recently and will need to go for ICT soon.
The usual have been done, like submitting for make up claim and what not.

I will be going for 2 weeks ICT so by right company will be paying half of my salary and SAF pay the other half.
But as this is a good year, company wants to give me a 'bonus' for good performance and says they are willing to pay me full if it means I am able to receive it, they are not sure as well.

So eg. $3000 salary = $1500 from company + $1500 from mindef
meaning company wants to give me $1500 as 'bonus'
means same thing, company will pay me same amount as every month, but still receive $1500 from mindef.

Will there be any law breaking or complications?
Does this also mean I have to pay more CPF?

if the payment of the extra $1500 is classified as a bonus, i don't see why it will be an issue.

 

[Lisianthus]

So no problem getting full salary from coy + 2 weeks salary from mindef?

 

[reddevil0728]

So no problem getting full salary from coy + 2 weeks salary from mindef?

i never said that. i am saying if they classified it as a BONUS, I don't see why it is an issue.

 

[Calander]

Hi All

I joined a foreign company recently and will need to go for ICT soon.
The usual have been done, like submitting for make up claim and what not.

I will be going for 2 weeks ICT so by right company will be paying half of my salary and SAF pay the other half.
But as this is a good year, company wants to give me a 'bonus' for good performance and says they are willing to pay me full if it means I am able to receive it, they are not sure as well.

So eg. $3000 salary = $1500 from company + $1500 from mindef
meaning company wants to give me $1500 as 'bonus'
means same thing, company will pay me same amount as every month, but still receive $1500 from mindef.

Will there be any law breaking or complications?
Does this also mean I have to pay more CPF?

best is to contact NS portal or your unit to avoid any misunderstanding and via official channel due to the sensitive nature.

 

[Kyoji83]

In the first place, your Bonus will not be affected if you go back ICT and make up claim (MUC) never included your ICT. If your Bonus is 50% of your basic salary, you should still get $1,500 (for 4 weeks which is a month) and not $750 (just because you work in company 2 weeks and serve ICT for another 2 weeks). The only things you can claim is OT pay, sale commission and etc that affect your gross income. This will use last 6 months pay to do a calculation for your loss when you come back ICT.

------------------

Let say your rank is PTE and now the rank allowance rate is $560.

Option 1
If you do a make up claim (MUC), mostly your company pay 1/2 while SAF pay 1/2. As for CPF, your employer and you will needs to pay full for your basic salary of $3,000. So this month, you will get $3,000 (before CPF deduction and your 'Bonus').

Option 2
However your company can chose not to do MUC and still pay you $3,000. Since you did not suffer any loss, SAF will only pay your rank pay (PTE) which is $560. So this month, you will get $3,560 (before CPF deduction from your basic salary of $3,000 and your 'Bonus').

Option 3
Your company did not deduct your salary but make a false declaration that they deduct your salary. So your company pay you $3,000 while SAF pay your MUC of $1,500. This month, you will get $4,500 (before CPF deduction from your basic salary of $3,000 and your 'Bonus').

You want want the highest amount of money, it is option 3 but it is illegal and your company will directly be affected and you will be indirectly affected.

Option 1 and 2 are legal. At employee point of view, choosing option 2 help me earn more money that month. However at employer point of view, choosing option 1 is the correct way cause why should employer suffer loss of money to pay your salary when you are not doing work but serving ICT?

Now you know what to do, carry on soldier!

Hi All

I joined a foreign company recently and will need to go for ICT soon.
The usual have been done, like submitting for make up claim and what not.

I will be going for 2 weeks ICT so by right company will be paying half of my salary and SAF pay the other half.
But as this is a good year, company wants to give me a 'bonus' for good performance and says they are willing to pay me full if it means I am able to receive it, they are not sure as well.

So eg. $3000 salary = $1500 from company + $1500 from mindef
meaning company wants to give me $1500 as 'bonus'
means same thing, company will pay me same amount as every month, but still receive $1500 from mindef.

Will there be any law breaking or complications?
Does this also mean I have to pay more CPF?

 

[Lisianthus]

In the first place, your Bonus will not be affected if you go back ICT and make up claim (MUC) never included your ICT. If your Bonus is 50% of your basic salary, you should still get $1,500 (for 4 weeks which is a month) and not $750 (just because you work in company 2 weeks and serve ICT for another 2 weeks). The only things you can claim is OT pay, sale commission and etc that affect your gross income. This will use last 6 months pay to do a calculation for your loss when you come back ICT.

------------------

Let say your rank is PTE and now the rank allowance rate is $560.

Option 1
If you do a make up claim (MUC), mostly your company pay 1/2 while SAF pay 1/2. As for CPF, your employer and you will needs to pay full for your basic salary of $3,000. So this month, you will get $3,000 (before CPF deduction and your 'Bonus').

Option 2
However your company can chose not to do MUC and still pay you $3,000. Since you did not suffer any loss, SAF will only pay your rank pay (PTE) which is $560. So this month, you will get $3,560 (before CPF deduction from your basic salary of $3,000 and your 'Bonus').

Option 3
Your company did not deduct your salary but make a false declaration that they deduct your salary. So your company pay you $3,000 while SAF pay your MUC of $1,500. This month, you will get $4,500 (before CPF deduction from your basic salary of $3,000 and your 'Bonus').

You want want the highest amount of money, it is option 3 but it is illegal and your company will directly be affected and you will be indirectly affected.

Option 1 and 2 are legal. At employee point of view, choosing option 2 help me earn more money that month. However at employer point of view, choosing option 1 is the correct way cause why should employer suffer loss of money to pay your salary when you are not doing work but serving ICT?

Now you know what to do, carry on soldier!

Thank you all for your replies!
I guess it is best to choose option 2.
From a little research and asking around it seems even declaring whatever is 'extra' as a bonus will create complications.
This company treat me very good so I don't want them to get into troublesome paperwork just for my reservice.

I guess company want to give me money also hard

 

[reddevil0728]

Thank you all for your replies!
I guess it is best to choose option 2.
From a little research and asking around it seems even declaring whatever is 'extra' as a bonus will create complications.
This company treat me very good so I don't want them to get into troublesome paperwork just for my reservice.

I guess company want to give me money also hard

Why will declaring whatever is “extras as a bonus will create complications?

Doesn’t have to be paid in the month you are having ICT what.

 

[Yukikaze_88]

I agree with reddevil.

According to the MUP portion on the NS Portal (Please Google for it, I can't post links cos not enough post count ), "Your Make-Up Pay is calculated based on your usual basic salary or fixed allowance payable to you for the period of your Operationally Ready National Service (ORNS) activity".

Although it also states that variable components of your salary can be claimed, I don't think performance bonuses are considered here due to the fact that it does not fulfill ALL of the three conditions listed for claimable variable components (i.e. received regularly at least 4 out of 6 months before your ICT, taxable & subject to CPF, and included in your contract) >> Specifically, the first condition (and maybe the third).

As reddevil has mentioned, it can be paid in another month, whichever that is per your company's SOP. Even if it happens this month, since it is reflective of your effort for the past year up to this point, it is not "lost" as a result of your ICT, so there's nothing to declare IMO.

I'm no legal eagle and this is wholly conjecture from me based on what I see, so if I'm wrong in any way, I would also like to be corrected.

 

[Calander]

Your employer should pay CPF contributions on the make-up pay given by MINDEF/SCDF/SPF. An example is shown below:

Tim earns a basic salary of $2,000 and an average overtime pay of $800 every month. He went on NS training in July 2015.

Pro-rated basic salary given by employer

$1,500

Overtime pay given by employer

$600

Make-up pay given by MINDEF/SCDF/SPF (including variable wage components like overtime pay and commission)

$700

(consists of $500 for the loss in basic salary and $200 for loss in overtime pay)

Total Wages for the month of July 2015

$2,800

Tim should still receive his CPF contributions for July 2015 based on his total wages of $2,800 as though he has not been away from work in the month. His employer has to bear the full employer's share of CPF contribution and recover the full employee's share from Tim's wages.


https://www.cpf.gov.sg/Members/FAQ/schemes/other-matters/cpf-contribution-for-employees