Quick answer: Singapore employers must deduct Self-Help Group (SHG) contributions from employees' wages based on race/religion and remit them to CPF Board alongside CPF. All four funds (CDAC, MBMF, SINDA, ECF) are employee-only deductions — there is no employer contribution. Rates range from S$0.50 to S$30.00/month depending on the fund and wage band.
If you run payroll in Singapore, CPF is not the only statutory deduction. Four Self-Help Group (SHG) funds — CDAC, MBMF, SINDA, and ECF — require monthly contributions from eligible employees based on their declared race or religion. Getting these wrong means under-deducting from employees and creating reconciliation headaches at year end. This guide covers every rate, every wage band, who pays what, and how to remit correctly. All figures are verified against CPF Board as of June 2026. For broader statutory deductions context, see our SDL calculation guide.
What are Self-Help Group (SHG) funds?
Singapore's four SHG funds support community development programmes for their respective communities:
- CDAC (Chinese Development Assistance Council) — for Chinese employees
- MBMF (Mosque Building and Mendaki Fund) — for Muslim employees
- SINDA (Singapore Indian Development Association) — for Indian employees
- ECF (Eurasian Community Fund) — for Eurasian employees
SHG contributions are mandatory monthly deductions from eligible employees' wages, collected by CPF Board on behalf of each self-help group. They are separate from CPF, SDL, and FWL — but remitted through the same CPF submission cycle.
CDAC contribution rates (2026)
CDAC applies to all Chinese employees. The contribution is deducted from the employee's wages only — there is no employer contribution for CDAC.
| Monthly Total Wages | Monthly Contribution (Employee) |
|---|---|
| ≤ S$2,000 | S$0.50 |
| > S$2,000 to S$3,500 | S$1.00 |
| > S$3,500 to S$5,000 | S$1.50 |
| > S$5,000 to S$7,500 | S$2.00 |
| > S$7,500 | S$3.00 |
Source: CPF Board, verified June 2026
MBMF contribution rates (2026)
MBMF applies to all Muslim employees. Only the employee contributes; there is no employer contribution for MBMF.
| Monthly Total Wages | Monthly Contribution (Employee) |
|---|---|
| ≤ S$1,000 | S$3.00 |
| > S$1,000 to S$2,000 | S$4.50 |
| > S$2,000 to S$3,000 | S$6.50 |
| > S$3,000 to S$4,000 | S$15.00 |
| > S$4,000 to S$6,000 | S$19.50 |
| > S$6,000 to S$8,000 | S$22.00 |
| > S$8,000 to S$10,000 | S$24.00 |
| > S$10,000 | S$26.00 |
Source: CPF Board, verified June 2026
SINDA contribution rates (2026)
SINDA applies to all Indian employees. Only the employee contributes.
| Monthly Total Wages | Monthly Contribution (Employee) |
|---|---|
| ≤ S$1,000 | S$1.00 |
| > S$1,000 to S$1,500 | S$3.00 |
| > S$1,500 to S$2,500 | S$5.00 |
| > S$2,500 to S$4,500 | S$7.00 |
| > S$4,500 to S$7,500 | S$9.00 |
| > S$7,500 to S$10,000 | S$12.00 |
| > S$10,000 to S$15,000 | S$18.00 |
| > S$15,000 | S$30.00 |
Source: CPF Board, verified June 2026
ECF contribution rates (2026)
ECF applies to all Eurasian employees. Only the employee contributes.
| Monthly Total Wages | Monthly Contribution (Employee) |
|---|---|
| ≤ S$1,000 | S$2.00 |
| > S$1,000 to S$1,500 | S$4.00 |
| > S$1,500 to S$2,500 | S$6.00 |
| > S$2,500 to S$4,000 | S$9.00 |
| > S$4,000 to S$7,000 | S$12.00 |
| > S$7,000 to S$10,000 | S$16.00 |
| > S$10,000 | S$20.00 |
Source: CPF Board, verified June 2026
Who pays SHG contributions?
SHG contributions are employee deductions — they are deducted from the employee's gross wages, not paid by the employer on top. All four SHG funds (CDAC, MBMF, SINDA, ECF) are employee-only. The employer deducts and remits but does not contribute.
SHG eligibility is determined by the employee's race/religion as declared to CPF Board. An employee's declared race on their NRIC or CPF record determines which fund they contribute to. Employers should not assume race based on name or appearance — use the CPF Board's records.
How to remit SHG contributions
SHG contributions are collected by CPF Board alongside monthly CPF contributions. The process:
- Calculate SHG for each eligible employee based on their declared race and wage band
- Include SHG amounts in the CPF eZpay submission file (the file has dedicated SHG fields)
- Upload the file to CPF Board's e-submission portal
- Payment is deducted via GIRO or paid via eNETS — same transaction as CPF
The due date for SHG is the same as CPF: the last day of the calendar month. Late payment incurs 1.5% per month simple interest, the same as CPF late-payment interest. See our CPF contribution rates guide for the full CPF submission timeline.
SHG opt-out and waiver
Employees who face financial hardship can apply directly to their respective SHG for a contribution waiver or reduction. The process:
- The employee (not the employer) submits the waiver application to the SHG
- If approved, the SHG notifies CPF Board, which updates the employee's record
- The employer then stops deducting (or deducts at the reduced rate) based on the updated CPF record
- Employers should not stop deducting SHG unilaterally — only after CPF Board confirms the waiver
How payroll software handles SHG
SHG is one of the easiest deductions to get wrong manually because it depends on race declaration and tiered wage bands — four different rate tables for four different funds. Payroll software eliminates this by:
- Auto-detecting SHG eligibility based on the employee's declared race in their profile
- Auto-calculating the correct contribution by applying the right rate table and wage band
- Including SHG in the CPF eZpay file so it is remitted in the same submission as CPF
- Tracking SHG year-to-date for reconciliation and IR8A reporting
AIMM Payroll auto-calculates all four SHG funds (CDAC, MBMF, SINDA, ECF) based on employee race declarations and generates eZpay files that include SHG contributions alongside CPF. See our pricing page for plan details — AIMM's flat per-company pricing starts at S$0 (free for up to 3 employees).
Frequently asked questions
Are SHG contributions mandatory?
Yes. If an employee's declared race matches one of the four SHG funds and their wage exceeds the fund's threshold, the contribution is mandatory. The employer must deduct and remit it. Employees can apply to the SHG directly for a waiver on financial hardship grounds, but the employer cannot waive it unilaterally.
Does the employer pay SHG contributions?
No. All four SHG funds (CDAC, MBMF, SINDA, ECF) are employee-only deductions. The employer deducts the contribution from the employee's wages and remits it to CPF Board alongside CPF — there is no employer contribution for any SHG fund.
How are SHG contributions different from CPF?
CPF is a retirement savings fund with employer and employee contributions at 37% total (17% + 20%) for employees under 55. SHG is a community fund with small flat-rate deductions (S$0.50 to S$30.00/month) based on race and wage band. Both are collected by CPF Board and remitted in the same monthly submission. See our CPF contribution rates guide.
What happens if I forget to deduct SHG?
You must back-deduct the missed contributions from the employee's subsequent wages and remit them to CPF Board. Late remittance incurs 1.5% per month simple interest. If the employee has left the company, the employer bears the cost of the missed contributions.
Can an employee opt out of SHG?
An employee can apply to their SHG for a waiver or reduction on financial hardship grounds. The SHG reviews the application and, if approved, notifies CPF Board. The employer stops or reduces the deduction only after CPF Board updates the record. Employees cannot simply opt out — they must go through the SHG's waiver process.
How do I know which SHG fund applies to each employee?
The employee's declared race with CPF Board determines the fund: Chinese → CDAC, Muslim → MBMF, Indian → SINDA, Eurasian → ECF. If an employee's race is not one of these four categories, no SHG contribution applies. Always use the CPF Board's record, not assumptions based on name or appearance.
Is SHG included in the CPF eZpay file?
Yes. The CPF eZpay file format has dedicated fields for SHG contributions. When you generate the file from your payroll software, SHG amounts are included automatically. The total deduction (CPF + SHG) is remitted in a single payment to CPF Board, which then distributes the SHG portion to each fund.
Does AIMM Payroll handle SHG calculations?
Yes. AIMM auto-calculates CDAC, MBMF, SINDA, and ECF contributions based on each employee's declared race and wage band, and includes them in the generated CPF eZpay file. AIMM's flat per-company pricing means SHG processing is included at no extra cost — from S$0 (free tier) to S$69/month (Business, up to 200 employees). Start free.
Summary
SHG contributions are small but mandatory deductions that trip up SMEs because they depend on race declarations and four different rate tables. CDAC (S$0.50–S$3.00 employee), MBMF (S$3.00–S$26.00 employee), SINDA (S$1.00–S$30.00 employee), and ECF (S$2.00–S$20.00 employee) are all collected by CPF Board alongside monthly CPF. All four funds are employee-only deductions — there is no employer contribution for any SHG fund. The easiest way to stay compliant is payroll software that auto-calculates based on employee race and includes SHG in the CPF eZpay file — AIMM Payroll does this from S$0/month. Whatever you use, ensure your software handles all four funds, applies the correct wage band, and tracks SHG year-to-date. See our CPF contribution rates guide and SDL calculation guide for the full statutory deductions picture.
Run compliant Singapore payroll from S$0 with AIMM Payroll. Start free.