In the heart of Singapore’s bustling Chinatown, Mei Ling, a young teacher, received her first paycheck. As she reviewed it, she noticed a small deduction labeled “CDAC.” Curious, she asked her father, a retired civil servant, about it. He smiled and shared how, decades ago, his own contributions to the Chinese Development Assistance Council (CDAC) helped a neighbor’s son attend university, transforming his family’s future. That small deduction, he explained, was part of a collective effort to uplift the Chinese community. This story reflects the essence of the CDAC contribution rate, a voluntary commitment that fuels programs for education, employment, and social welfare, fostering resilience and unity across Singapore.

What is the CDAC Contribution Rate?

Definition and Purpose

The CDAC contribution rate refers to the monthly financial contributions made by working Chinese Singaporeans and Permanent Residents to the Chinese Development Assistance Council (CDAC). Established on September 1, 1992, CDAC is a non-profit self-help group dedicated to supporting underprivileged individuals and families within the Chinese community. These contributions fund initiatives in education, skills development, and social welfare, ensuring no one is left behind.

Why It Matters

The CDAC contribution rate is pivotal in sustaining programs that empower the community. In 2023, over 20,000 beneficiaries received support, including 12,000 students aided with educational resources and 5,000 workers benefiting from skills upgrading. These efforts promote social mobility and strengthen community cohesion, aligning with Singapore’s vision of inclusivity.

CDAC Contribution Rate Structure

Current Rates (2025)

As of 2025, the CDAC contribution rate is structured based on monthly income levels, ensuring affordability across diverse financial situations. The rates, effective since January 1, 2015, are as follows:

·         Total Monthly Wages ≤ S$800: S$0.50

·         S$800 < Wages ≤ S$1,200: S$1.00

·         S$1,200 < Wages ≤ S$2,000: S$1.50

·         S$2,000 < Wages ≤ S$3,000: S$2.00

·         S$3,000 < Wages ≤ S$4,000: S$2.50

·         Wages > S$4,000: S$3.00

Total wages include all remuneration, such as overtime pay, allowances, commissions, and bonuses. These rates are deducted automatically from employees’ wages unless they opt out.

How Contributions Are Calculated

Employers compute the CDAC contribution rate based on an employee’s gross monthly wages. For example, an employee earning S$2,500 monthly contributes S$2.00. If an employee works for multiple employers, contributions are calculated per employment, allowing flexibility to contribute through one or more companies or opt out from others.

Benefits of CDAC Contributions

Educational Empowerment

CDAC’s educational programs are a cornerstone of its mission. Contributions fund scholarships, bursaries, and resources, enabling students to pursue quality education without financial strain. This support ensures talent and potential are nurtured, fostering upward mobility.

Employment and Skills Development

CDAC offers career counseling and skills workshops, helping workers adapt to evolving job markets. Over 5,000 individuals benefited from these programs in 2023, gaining skills to secure better opportunities.

Social Welfare and Community Engagement

From emergency financial aid to community activities, CDAC supports vulnerable families and promotes unity. These initiatives create a resilient society where individuals thrive through mutual support.

Opting Out of CDAC Contributions

A Voluntary Commitment

Unlike mandatory CPF deductions, the CDAC contribution is voluntary. Employees who choose not to contribute face no penalties. To opt out, individuals can submit an opt-out form to CDAC via email at cdacfund@cdac.org.sg or contact CDAC for guidance. Employers stop deductions immediately upon receiving the form, keeping a copy for records.

Flexibility for Contributors

CDAC allows individuals to adjust their contribution amounts based on financial circumstances. Those wishing to contribute more can make voluntary donations, amplifying their impact on the community.

Employer Responsibilities

Deduction and Remittance

Employers are responsible for deducting CDAC contributions from employees’ wages and remitting them to the CPF Board, which acts as the collecting agent. Contributions are pro-rated based on wages paid in a given period, ensuring accuracy.

Handling Refunds

If contributions are paid in error or exceed the scheduled rates, employers can request refunds within one year by submitting a written request with supporting documents, such as CPF Form 90. Refunds are processed to the company, which then adjusts payments to employees.

CDAC’s Impact on Singapore’s Chinese Community

A Legacy of Support

Since its inception, CDAC has transformed lives. By 2020, it had assisted over 18,000 lower-income households. Its focus on education, employment, and welfare continues to address emerging challenges, ensuring the Chinese community remains resilient.

Transparency and Accountability

CDAC provides transparent reports on fund allocation, detailing how contributions support various programs. This openness builds trust, encouraging sustained participation from contributors.

Conclusion

The CDAC contribution rate, though modest, holds immense power when combined with the efforts of countless Singaporeans. Like Mei Ling’s small deduction, each contribution weaves a tapestry of support, uplifting students, workers, and families. By participating, individuals invest in a stronger, more cohesive Chinese community, ensuring opportunities for all. Whether you choose to contribute or volunteer, your involvement with CDAC shapes a brighter future for Singapore, one story of success at a time. For more details, visit the official CDAC website at www.cdac.org.sg.