Query on ICT Make-Up Claim

[Iron-man]

Hi guys, I just wanted to be sure that I don't owe my company any money for the ICT that I just underwent. I can't consult HR cos I'm working in a small company and I'm the only Singaporean male there (let's not get into that, the company has been treating me well). Tried calling MINDEF hotline but they couldn't give me a proper answer.

It goes like this: My company only paid for the days that I was present, but they also paid my CPF contributions as per usual. So for instance:
Gross salary: $2,000 (before CPF deduction)
Pro-rated salary: $1,000 (assuming I was gone for half a month)
Employer CPF (16%): $320
Employee CPF (20%): $400

I understand that the employer CPF contribution remains unchanged even though the employee goes for ICT. The employee CPF contribution is the issue I'm concerned about. When I made a claim using the hardcopy form, I did the calculations using the gross salary as stipulated on the form. So I received $1,000 in make-up pay from MINDEF. But since it was based on gross salary, that means that a portion of the employee CPF was also included in the $1,000 make-up pay. This doesn't seem right.

I reckon that my company should have reduced the employee CPF contribution by half and contributed only $200, seeing that I wasn't around for half the month. But they didn't and gave the employee contribution in full. So they should take back the remaining $200 from my make-up pay because it makes no sense for them to pay the full employee CPF contribution when I wasn't around half the time.

Sorry for being so longwinded, but is this the correct logic? Hope some kind soul can advise.

 

[mgx-alander]

when u go for ICT, u are "working as usual" and MINDEF pay ur employer for the time u are missing

whatever cpf contributions u have is the SAME, it does not matter whether u go for ICT for 10days, 20days, or the max 40days per year. CPF is a statutory thing, if you get paid $2k total, u pay 20% of the $2k total, your employer also pays you the 16% full

 

[WinMe]

Hi guys, I just wanted to be sure that I don't owe my company any money for the ICT that I just underwent. I can't consult HR cos I'm working in a small company and I'm the only Singaporean male there (let's not get into that, the company has been treating me well). Tried calling MINDEF hotline but they couldn't give me a proper answer.

It goes like this: My company only paid for the days that I was present, but they also paid my CPF contributions as per usual. So for instance:
Gross salary: $2,000 (before CPF deduction)
Pro-rated salary: $1,000 (assuming I was gone for half a month)
Employer CPF (16%): $320
Employee CPF (20%): $400

I understand that the employer CPF contribution remains unchanged even though the employee goes for ICT. The employee CPF contribution is the issue I'm concerned about. When I made a claim using the hardcopy form, I did the calculations using the gross salary as stipulated on the form. So I received $1,000 in make-up pay from MINDEF. But since it was based on gross salary, that means that a portion of the employee CPF was also included in the $1,000 make-up pay. This doesn't seem right.

I reckon that my company should have reduced the employee CPF contribution by half and contributed only $200, seeing that I wasn't around for half the month. But they didn't and gave the employee contribution in full. So they should take back the remaining $200 from my make-up pay because it makes no sense for them to pay the full employee CPF contribution when I wasn't around half the time.

Sorry for being so longwinded, but is this the correct logic? Hope some kind soul can advise.

Based on the info above,
I take it as your Basic pay will be $2,000.00
If your RANK is 3SG and your service pay is $630.00 (estimated).
Assuming that you are going for a low key (5 days), the calculation will be as follows:

$2000 multiply by 5 days divide by 22 working days.
Computation string: 2000 * 5 / 22 = $454.54. (Your salary)

Rank pay: 630 * 5 / 22 = $143.18

Therefore your make up pay will be ($454.54-$143.18) + service pay ($143.18) = $454.54.

 

[chehjin]

Hi guys, I just wanted to be sure that I don't owe my company any money for the ICT that I just underwent. I can't consult HR cos I'm working in a small company and I'm the only Singaporean male there (let's not get into that, the company has been treating me well). Tried calling MINDEF hotline but they couldn't give me a proper answer.

It goes like this: My company only paid for the days that I was present, but they also paid my CPF contributions as per usual. So for instance:
Gross salary: $2,000 (before CPF deduction)
Pro-rated salary: $1,000 (assuming I was gone for half a month)
Employer CPF (16%): $320
Employee CPF (20%): $400

I understand that the employer CPF contribution remains unchanged even though the employee goes for ICT. The employee CPF contribution is the issue I'm concerned about. When I made a claim using the hardcopy form, I did the calculations using the gross salary as stipulated on the form. So I received $1,000 in make-up pay from MINDEF. But since it was based on gross salary, that means that a portion of the employee CPF was also included in the $1,000 make-up pay. This doesn't seem right.

I reckon that my company should have reduced the employee CPF contribution by half and contributed only $200, seeing that I wasn't around for half the month. But they didn't and gave the employee contribution in full. So they should take back the remaining $200 from my make-up pay because it makes no sense for them to pay the full employee CPF contribution when I wasn't around half the time.

Sorry for being so longwinded, but is this the correct logic? Hope some kind soul can advise.

long story short, there is no double payment of CPF. if they pay for you half as you wanted, you still have to top up the other half from the money you got from SAF. it is left hand right hand thing. Cannot run wan.

 

[Iron-man]

long story short, there is no double payment of CPF. if they pay for you half as you wanted, you still have to top up the other half from the money you got from SAF. it is left hand right hand thing. Cannot run wan.

I understand that at the end of the day, I still get the same amount of money as if I was working as usual. But my make-up claim was credited to my personal account and not the company's account. Perhaps that's why the CPF wound up with me and not the company. Should the claimed money go to the company first, undergo CPF deduction, then make its way to me?

And I made a mistake on the scenario I presented. Basic salary is $2,000, then the take-home for that month should be $1,000 - 20% = $800.

 

[Iron-man]

Put it simply, this is what happened:

Normal month
Gross salary: $2,000
Take-home salary: $1,600 (-20% employee CPF contribution)
Employer CPF Contribution: $320 (16%)
Employee CPF Contribution: $400 (20%)
Total taken home: $1,600

ICT Month
Gross salary: $2,000
Take-home salary: $800 (-20% employee CPF contribution & away for ICT for half a month)
Employer CPF Contribution: $320 (16%)
Employee CPF Contribution: $400 (20%)
MINDEF claim credited to my account: $1,000 (Gross salary x number of ICT days that fall on working days)
Total taken home: $800+$1,000=$1,800

As you can see, there's an excess of $200 which stems from the employee CPF contribution, i.e. company paid in full and MINDEF reimbursed to my account along with make-up pay.

Hope this gives a clearer picture. Is the mistake being that the make-up pay should first go to the company's account for CPF deduction before reaching me?

 

[WakaaWakaa]

I understand that at the end of the day, I still get the same amount of money as if I was working as usual. But my make-up claim was credited to my personal account and not the company's account. Perhaps that's why the CPF wound up with me and not the company. Should the claimed money go to the company first, undergo CPF deduction, then make its way to me?

And I made a mistake on the scenario I presented. Basic salary is $2,000, then the take-home for that month should be $1,000 - 20% = $800.

Where your make up pay is credited to will depend on which option either yourself or your HR chose when filing the claim. If 1.) company pays your salary in full as per normal and they claim from MINDEF the portion you were away for 2.) company pays for only the days you were around with MINDEF paying the days you were in reservist.

Therefore if 2.) was chosen then your pay will go to your account. CPF contribution-wise as someone mentioned, is unaffected. Your company deducts and pays both contributions as per usual. It sounds like you should probably clarify with your HR since you are the only person who attends reservist, so they may be new/unfamiliar to the procedures.

 

[Iron-man]

Where your make up pay is credited to will depend on which option either yourself or your HR chose when filing the claim. If 1.) company pays your salary in full as per normal and they claim from MINDEF the portion you were away for 2.) company pays for only the days you were around with MINDEF paying the days you were in reservist.

Therefore if 2.) was chosen then your pay will go to your account. CPF contribution-wise as someone mentioned, is unaffected. Your company deducts and pays both contributions as per usual. It sounds like you should probably clarify with your HR since you are the only person who attends reservist, so they may be new/unfamiliar to the procedures.

Yes, option 2 was chosen. If you take a look at the figures in my previous post, I end up with an excess of $200 since the gross salary was used in computing the make-up claim. Should the net salary (after CPF deduction) be the figure used in the claim instead?

 

[Iron-man]

Okay I guess the answer is here.

"Tim should still receive his CPF contributions for July 2014 based on his total wages of $2,800, as though he has not been away from work in July 2014. His employer has to bear the full employer’s share of CPF contribution but can recover the full employee’s share from Tim’s wages."

 

[quirkyhill]

i am in charge of HR matters in a small company and i need to get some input from anyone familiar with NS make up pay as i have 1 staff still doing reservist.

staff in question has basic pay of $2.9k, worked 5 day week, no other additions or deductions to the salary. he did 2.5 days of reservist (3 separate days) in april, which had 21 working days. So he worked 18.5 days for april.

gross salary: $2900
cpf: $580 (unchanged)
after cpf: 2900 - 580 = $2320
staff take home salary for april = 18.5/21 x 2320 = $2043.80
claim from mindef = 2.5/21 x 2320 = $276.19

is this correct? but judging from the info provided on the ns portal https://www.ns.sg/nsp/portal/site/m...question=who-is-eligible-to-claim-make-up-pay

staff take home salary for april: 18.5/21 x 2900 - 580 = $1974.76
claim from mindef = 2.5/21 x 2900 = $345.24

is the part in red correct then? called NS portal and they said part in red is correct but my colleague said this way of calculation means extra 2.5 days of cpf is deducted so... can anyone advise? really confused here :S

 

[Kyoji83]

I did not do a calculation to double confirm cause end day it is about CPF.

Regardless of how many days NSmen serve their ICT, Government (Mindef) don't pay CPF. So both Employer and Employee have to pay full amount for CPF deduction like any other months without ICT.

i am in charge of HR matters in a small company and i need to get some input from anyone familiar with NS make up pay as i have 1 staff still doing reservist.

staff in question has basic pay of $2.9k, worked 5 day week, no other additions or deductions to the salary. he did 2.5 days of reservist (3 separate days) in april, which had 21 working days. So he worked 18.5 days for april.

gross salary: $2900
cpf: $580 (unchanged)
after cpf: 2900 - 580 = $2320
staff take home salary for april = 18.5/21 x 2320 = $2043.80
claim from mindef = 2.5/21 x 2320 = $276.19

is this correct? but judging from the info provided on the ns portal https://www.ns.sg/nsp/portal/site/m...question=who-is-eligible-to-claim-make-up-pay

staff take home salary for april: 18.5/21 x 2900 - 580 = $1974.76
claim from mindef = 2.5/21 x 2900 = $345.24

is the part in red correct then? called NS portal and they said part in red is correct but my colleague said this way of calculation means extra 2.5 days of cpf is deducted so... can anyone advise? really confused here :S