Community contributions based on ethnicity
Self-Help Group contributions, commonly known as SHG, are small monthly amounts deducted from employee salaries to support community-based programmes in Singapore. These contributions fund education, training, and social assistance initiatives for different ethnic communities.
SHG contributions are automatically deducted along with CPF and submitted to the CPF Board. As an employer, you need to understand how they work to ensure accurate payroll processing.
What Are Self-Help Groups
Singapore has four main Self-Help Groups, each serving a specific ethnic community:
- CDAC (Chinese Development Assistance Council) supports the Chinese community.
- SINDA (Singapore Indian Development Association) supports the Indian community.
- MENDAKI (Yayasan MENDAKI) supports the Malay and Muslim community.
- EA (Eurasian Association) supports the Eurasian community.
Each organisation runs programmes focused on education, skills training, and community support to help lower-income families and individuals.
Who Contributes to SHG
SHG contributions apply to:
- Singapore Citizens who earn above a minimum monthly wage.
- Permanent Residents who earn above a minimum monthly wage.
The specific Self-Help Group an employee contributes to is determined by their ethnicity as recorded in their NRIC. Foreigners on work passes are not required to contribute.
How SHG Contributions Are Calculated
SHG contribution amounts are based on the employee's monthly wages. The rates are tiered, meaning employees earning more contribute slightly higher amounts. Each Self-Help Group sets its own contribution rates.
For example, contributions typically range from $0.50 to $3.00 per month depending on salary level and the specific Self-Help Group.
Employer Responsibilities
As an employer, you are responsible for:
- Deducting the correct SHG amount from each eligible employee's monthly salary.
- Submitting SHG contributions together with CPF contributions to the CPF Board.
- Updating payroll if an employee opts out of SHG contributions.
SHG contributions are submitted as part of your monthly CPF submission. You do not need to make separate payments to each Self-Help Group.
How Officaid Handles SHG
Officaid automatically calculates SHG contributions when you process payroll. Based on the employee's ethnicity and salary, Officaid determines the correct Self-Help Group and contribution amount.
When you generate a payslip, the SHG deduction appears alongside CPF contributions. When you submit to CPF, the SHG amount is included automatically.
Frequently Asked Questions
The Self-Help Group is determined by the employee's ethnicity as recorded in their NRIC. When you add an employee to Officaid and enter their ethnicity, the system automatically assigns the correct SHG.
Yes. Employees can contact their respective Self-Help Group to opt out. Once they have confirmation, you can update their profile in Officaid to stop the deduction.
SHG contributions are deducted from the employee's salary. The employer does not pay any additional amount for SHG.
Employees whose ethnicity does not fall under the four main groups are generally not required to contribute to SHG. Officaid will handle this automatically based on the ethnicity recorded.
Official Resources
For more information on Self-Help Group contributions, visit these official websites:
What's Next?
Learn about other payroll contributions in Singapore:
- What is CPF covers Singapore's mandatory savings scheme.
- What is SDL explains the Skills Development Levy paid by employers.
- How CPF Rates Work breaks down contribution rates by age and salary.