Workfare Income Supplement (WIS) is the supplement income and retirement savings of eligible low-wage workers through cash payments and Central Provident Fund (CPF) contributions. The eligible low-wage workers have been seeing their income rise above the eligibility criteria which currently stands at not more than S$2,000 gross monthly income. The cash payment which is 40% of the total supplement, will be used to meet their short-term expenditures, whereas the remaining amount will contribute to CPF top-up as retirement savings.
For the Small-Medium Enterprise (SME) in the industry with a large proportion of low-wage workers, such as security and cleaning industry, it’s important to pay attention to this issue as the WIS scheme can encourage workers to work, and it expects companies to contribute on the CPF payments as the CPF Act stated that the employer whose workers wage more than S$50, should contribute to CPF.
At this point, the employer needs to make sure that the company contributes to CPF on behalf of the workers. The company needs to calculate each worker’s CPF payment and deduct from their payments. However, it’s not easy for companies in the stated industries to calculate each worker’s CPF amount as the working times can be varied for each worker.
In the digital age where anything can be automated, it’s best for SMEs in the security and cleaning industry to use automation systems. Especially, Human Resource Management Systems. A digitise HRM systems can automate the CPF calculation and help to reduce the unnecessary administrative cost.
The HRM Systems, such as HRMLABS, created a one-stop platform which allows Small-Medium Enterprise owners to manage their businesses in a more efficient way and as easily as one click away. Human resource systems can take the job to do the salary automation that automates the entire process flow from attendance taking to eventually full payslip release. On top of it, the solutions can help the company to solve the complex payroll and add the other payment factors and mandatory deduction, such as CPF.
To make it easy, the employer can fix the labour costs, such as per hour salary, and let the systems do the work. The human resource systems take out the difficulty of manual calculations and minimize or even eliminate errors that may be occurred from the manual process. In the end, every worker will receive a payslip which already deducted for CPF and gives the net income result. This seamless solution of HR systems allows the company to focus more on the other tasks than spending time on HR issues. SMEs that may not have the great number of resources to take all the complex HR process and other operation processes, can improve their productivity.
To comply with government regulation, HRMLABS human resource systems also help SMEs to adhere to the government regulation and make sure to update with the changes of regulations, such as CPF changes or MOM compliance.
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