What are Donation Funds

What are Donation Funds

All employees working in Singapore/for Singapore companies have to contribute monthly CPF amounts to their CPF (Central Provident Fund). This amount is taken out of one’s pay (or salary). What most people may not be aware of is that a certain portion of this contribution also goes into Self-Help Group (SHG) funds, i.e. Donation Funds.

These come in the form of small donations, which go into the ECF, SINDA, CDAC, or MBMF funds, depending on which community you belong to. The funds were originally set up to provide financial assistance to the low-income households in the Eurasian, Indian, Chinese, and Muslim communities respectively.

If you have your payslip with you, take a glance at it. You will notice that you probably have been making these contributions; they are deducted from your wages together with your share of CPF contribution. The rates are usually fixed and stay the same for years. 

Note: For further information, refer to the given MOM website:

Product Version: SMEPayrollTM Version 11

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