Business Resources

What is CDAC, ECF, MBMF, SINDA Donation Fund Contribution?

CDAC, ECF, MBMF, SINDA. We see all these acronyms on the payslips but what do they actually mean and what type of donation funds are they? As a group, these are known as Self-Help Group (SHG) funds. Employees are required to make monthly contributions to these SHGs funds, depending on their race. These monthly contributions are typically deducted automatically from employees’ wages. Given the multi-racial country that Singapore is, these SHGs funds contributions are targeted at helping the less privileged and low income households in the individual communities. However, unlike CPF contributions, these SHGs funds contributions are not mandatory. Should an employee wish to contribute a different amount or opt-out, they will have to obtain the relevant forms from the respective SHGs.

Chinese Development Assistance Council (CDAC) Fund

The CDAC is a self help group targeted at the less successful individuals in the Chinese community. With effect from 1 September 1992, all employees belonging to the Chinese community who are Singapore Citizens and Singapore Permanent Residents need to make monthly contributions to the CDAC Fund according to their individual wage level. The contributions range from S$0.50 for those earning a monthly income of S$2,000 to S$3 for those with a monthly income of more than S$7,500.

Eurasian Community Fund (ECF)

The ECF was established by the Eurasian Association, which is a self-help community organisation support by the Singapore government. A Eurasian is person defined as “Eurasian” in their identity card, or a person of both European and Asian ancestry. All employees belonging to the Eurasian community who are Singapore Citizens and Singapore Permanent Residents need to contribution monthly to the ECF. The monthly contributions range from S$2 for those earning less than S$1,000 in monthly wages to S$20 for those earning more than S$10,000 in monthly wages.

Mosque Building and Mendaki Fund (MBMF)

The MBMF targets at helping to build and upgrade the mosques in Singapore, supporting their religious programmes and providing assistance to Muslim families. Additionally, it funds the MEDAKI’s educational and social programmes to strengthen and uplift Malay and Muslim families. It is also used to support the Religious Education to support current and future religious education needs of the Muslim community. All working Muslims who are Singapore Citizens, Singapore Permanent Residents and foreign employees need to contribute to the MBMF. The new contributions rates will take effect from 1 June 2016. Based on the new contribution rates, it ranges from S$3 for those earning S$1,000 or less in monthly wages to S$26 for those earning more than S$10,000.

Singapore Indian Development Association (SINDA) Fund

SINDA, which was formed in August 1991, is a self-help group that works to uplift the Singapore Indian Community. These funds will go towards raising the academic level of Indian students, and also offering a range of programmes and services to help families that require assistance. All employees belonging to the India Community, except those on the Foreign Worker Levy (FWL) scheme, need to contribute monthly to the SINDA fund. The monthly contributions range from S$1 for those earning S$1,000 or less in monthly wages to S$30 for those earning S$15,000 or more.

Given the numerous monthly SHG fund contributions, it can be difficult to keep track once there are legislative changes to the monthly contribution rates. At ePayslip, we provide complimentary updates to the payroll system whenever there are any changes to these monthly contribution rates, saving our users the hassle of having to update it manually. For more information, do not hesitate to reach out to us here.