Who is required to pay for MBMF?
The MBMF is applicable to all working Muslims in Singapore – regardless of race and nationality, which includes permanent residents and foreign workers either on an Employment Pass or a Work Permit.
For a working Muslim who is contributing to either the Chinese Development Assistance Council (CDAC) or the Singapore Indian Development Association (SINDA) in addition to the MBMF, he/she has the option to continue contributing or opt-out from either fund. He/she will then have to submit an opt-out form to the relevant agencies.
How much is the current contribution rate to MBMF?
The revised MBMF contribution rate will take effect for wages earned from 1st June 2016.
The new rates are:
|Total Monthly Wage of Muslim Employee||Current Monthly Contribution||Revised Monthly Contribution||Allocation to Mosque and Religious Education component||Allocation to Mendaki component|
|> $1,000 to $2,000||$3.50||$4.50||$3.00||$1.50|
|> $2,000 to $3,000||$5.00||$6.50||$5.00||$1.50|
|> $3,000 to $4,000||$12.50||$15.00||$11.00||$4.00|
|> $4,000 to $6,000||$16.00||$19.50||$13.50||$6.00|
|> $6,000 to $8,000||$16.00||$22.00||$14.50||$7.50|
|> $8,000 to $10,000||$16.00||$24.00||$16.00||$8.00|
Do “Total Monthly Wage” includes bonuses?
“Wages” refers to all monetary remuneration that an employee receives, which includes: his/her salary, overtime pay, allowances, leave pay, cash rewards, incentives, commissions and bonuses.
Following is a general guide on what is accounted for MBMF.
|TYPE OF PAYMENT||DESCRIPTION||ACCOUNTED FOR MBMF|
|Anniversary Cash Award||Payment to employees on company’s anniversary||Yes|
|Annual Wage Supplement/ Bonus||Payment to employees at the end of the financial year||Yes|
|Attendance Allowance||Payment for good work and attendance||Yes|
|Commission||Payment to employees based on percentage of sales achieved||Yes|
|Cost of Living Allowance||Payment as part of employee’s wages||Yes|
|Dirt Allowance||Payment for performing field duties||Yes|
|Education Allowance||Contractual payment for education of employee’s children||Yes|
|Payment made under employee’s self-improvement programme||No|
|Education/Training Reimbursement||Reimbursement of course and examination fees as part of employee’s training programme||No|
|Entertainment Allowance||Reimbursement for entertaining company’s clients||No|
|Extra Duty Allowance||Payment made for extra work done; e.g. night duty, overtime, public holiday, acting allowance etc.||Yes|
|Festival Allowance||Cash gift (e.g. hongbao) given to employees during festive season||Yes|
|Finders Introduction Fees||Payment to employees for introducing workers to company||No|
|Gratuity||Payment to employees for good service while still in employment||Yes|
|Payment to employees upon termination of employment, i.e. compensation in nature||No|
|Grooming Allowance||Payment to employees for enhancement of appearance||Yes|
|Hair Cut Allowance||Payment to employees for enhancement of appearance||Yes|
|Handphone & Pager Allowance||Payments to employees||Yes|
|Handphone & Pager||Forms part of the employer’s expenditure & paid directly to third party e.g. service provider||No|
|Handphone & Pager Reimbursement||Reimbursement for actual expenses incurred for official purposes||No|
|Holiday Allowance||Fixed payment to employees for vacation||Yes|
|Variable sum given as reimbursement for holiday expenses incurred by employees||No|
|Housing/Rental Subsidy||Payment to employees as housing rent||Yes|
|Housing Reimbursement||Forms part of the employer's expenditure and paid directly to third party e. g. landlord||No|
|Incentive Allowance||Cash payment incentive||Yes|
|Incentive in kind e. g. token gifts||No|
|Laundry Reimbursement||Reimbursement for laundry expenses to uniformed employees||No|
|Laundry Allowance||Payment for laundry expenses for personal clothing of employees||Yes|
|Leave Pay||Payment in lieu of leave||Yes|
|Long Service Award||Cash award for long service||Yes|
|Cash award given to employees with at least 5 years' service and every subsequent period of not less than 5 years' service, i.e. 5,10,15 and so on,and the cash award does not exceed the employee’s Ordinary Wages for the month in which it is given. If the Long Service Award exceeds the Ordinary Wages, CPF is still payable on the amount in excess of the Ordinary Wages.||No|
|Maternity Allowance||Payment to female employees during confinement and in addition to monthly salaries||Yes|
|Maternity Subsidy||Reimbursement paid under company's maternity expenses scheme||No|
|Meal Allowance||Monthly lump sum payment to employees||Yes|
|Meal Reimbursement||Reimbursement for staying beyond working hours i.e. overtime||No|
|Personal Clothing Allowance||Payment to employees to enhance appearance||Yes|
|Probation Period Pay||Wages for employees on probation||Yes|
|Productivity Award||Cash award for staff productivity||Yes|
|Gifts in Kind||Award in kind e.g. token gifts||No|
|Sales Performance Award||Payment for attaining sales target||Yes|
|Service Charge||Collection by hotels/restaurants and distributed as part of wages to employees||Yes|
|Staff Welfare Benefits||Gifts in kind to employees on their marriage or birth of their children||No|
|Stand-by Allowance||Payment for stand-by duties||Yes|
|Student Pay||Wages paid to employees/registered students, including students who work after completing their ‘A’ level examinations.||Yes|
|Wages paid to registered students as follows: (a) School students working during their gazetted school holidays. (N.A. for tertiary students) (b) ‘N’ & ‘O’ level school leavers working during the gazetted school holidays. (c) ‘A’ level students working during school holidays before their "A" level examinations.||No|
|Registered students of any overseas tertiary education institution who are employed as follows: (a) The student is employed without a letter from the tertiary education institution stating that the training is required as part of the student’s curriculum (b) The student is employed with the employer submitting a letter from the tertiary institution to CPFB, stating that the training is required as part of the student’s curriculum, and the training period does not exceed 6 months||Yes|
|Registered students employed during vacation or term, under training programme approved by the following institutions: (a) National University of Singapore (b) Nanyang Technological University (c) Nanyang Polytechnic (d) Ngee Ann Polytechnic (e) Singapore Polytechnic (f) Temasek Polytechnic (g) Institute of Technical Education (h) Singapore Management University (i) Republic Polytechnic||No|
|Termination Benefits||Retirement gratuity, retrenchment pay, ex-gratia payment, salary in lieu of notice, severance pay, compensation for loss of employment||No|
|Payment of temporary lay-off benefits||Yes|
|Tips||Cash collected from customers to augment wages of hotel and restaurant employees||Yes|
|Transport Allowance||Payment to subsidise employees’ transport expenses||Yes|
|Reimbursement for travel in the line of official duty||No|
|Reimbursement for travel between home and workplace beyond normal working hours e.g. rest days and public holidays||No|
|Reimbursement for travel from home/office to the place of assignment (not the normal place of work)||No|
|Reimbursement for actual transport expenses where the employer is obliged to provide transport for employees and where the transport is not available||No|
|Workmen's Compensation||Payment awarded for injuries under the Workmen’s Compensation Act||No|
How does my employee change his/her MBMF contribution rate?
There are three components to the MBMF: (i) Mosque Building, (ii) Religious Education, and (iii) Mendaki.
Employees may choose to (a) increase, (b) decrease or (c) opt out from either or all of the above three components. To do so, the employee will have to submit a Change Application Form to Muis, after which a certificate will be issued to confirm the changes within two weeks. The employee will then notify you of the changes to their MBMF contribution.
The Change Application Form can be downloaded here.
There is a discrepancy in my employee’s MBMF contribution rate, what do I do?
For overpayments and request for refunds, please submit the following details to email@example.com:
- CPF Statement
- Payslip of affected month(s)
For back-payments, please mail the cheque with your employee’s name and identification number to our office at:
Mosque Building and Mendaki Fund (MBMF)
Majlis Ugama Islam Singapura (Muis)
Singapore Islamic Hub
273 Braddell Road
What is the cut-off date for me to send my employee’s MBMF contributions to CPF?
The cut-off date is the same as the cut-off date for CPF contribution i.e. 14th day of the following month. If the 14th falls on a weekend or a public holiday, contributions must be paid by the next working day. For employees who do not contribute to CPF, you should issue a cheque to Muis for their MBMF contribution.
Any employer who has received the MBMF contributions from their employee but fails to pay the contributions within such time shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $2,000.
The new rates take effect starting from 1 June 2016. Does this mean we use the revised rates for June payroll, although we are only required to submit to CPF by 14 July?
Yes. The new MBMF rates will apply for wages earned in the month of June 2016 onwards.