SSG, the agency in charge of long term learning, was also found by the AGO to become lax in enforcing the collection of Skills Development Levy (SDL) funds from 2015 to 2020, resulting in an estimated S$43 mil owed to the agency as of April this season.
The particular SDL is a compulsory levy that companies have to pay each month for all their employees doing work in Singapore.
The particular levy payable for every employee is 0. 25 per cent of the monthly total income. The agency comes estimates of SDL payable by companies based on existing authorities data, such as the Main Provident Fund (CPF).
“SSG’s estimates may differ from real SDL amounts paid by employers because of factors such as fluctuations in total wages paid to foreign employees every month, ” stated Ms Gan.
“In some cases, the particular variance may be due to employers using more updated employee data, instead of being an real underpayment of SDL. ”
SSG has adopted a “risk-based approach” to follow along with up on estimated diversities, she added.
“The overall difference between the estimated SDL payable and the actual payments has fallen from 18 per cent of overall SDL collected in 08, to the current 3 to 4 %, with the majority of companies compliant in having to pay their levy these days. ”
Microsoft Gan attributed this to IT system improvements and SSG’s reminder letters and phone calls, but the agency appreciates that more needs to be done to actively reconcile remaining gaps and help many employers pay the proper levy.
SSG will give affected companies time to validate the amount owed, she said, adding that the agency has started interesting affected employers and will contact all by the end of this financial season.
Ms Gan also said timely payment reminders will be sent, while more effective processes will be developed to resolve differences in the particular company’s and SSG’s estimates of SDL payable.
For your few recalcitrant companies who do not pay out the outstanding prices despite reminders, SSG will take “decisive punitive actions”. Individuals may also be taken to task need to any negligence be found.
Ms Gan noted that SSG takes the AGO’s findings “seriously” and “will do even more to review and improve its policies, processes and systems in order to minimise such lapses”.