Understanding CDAC, Mendaki, SINDA & ECF Contributions: What Every Singaporean Employer Must Know

If you run payroll in Singapore, you’re probably familiar with CPF contributions. But many HR teams overlook the details of Self-Help Group (SHG) funds—like CDAC, Mendaki, SINDA, and ECF—which are also mandatory for eligible employees.

These contributions vary depending on employee profiles, are periodically updated, and are subject to specific exemption rules. Missing a rate change or misunderstanding the requirements could put your payroll out of compliance.

In this guide, we’ll walk you through the legal and operational essentials of SHG contributions, from determining rates to managing exemptions. And we’ll show you how Omni’s HR software can simplify compliance, so you can focus on your people, not the paperwork.

Read next: What is SG Enable? Tools for Building a More Equitable Working Environment in Singapore

What are CDAC, Mendaki, SINDA, & ECF Contributions?

CDAC, Mendaki, SINDA, and ECF contribution funds all fall under Self-Help Group (SHG) funds in Singapore. They were established to support low-income households and underprivileged individuals within specific communities: Chinese, Eurasian, Muslim, and Indian, respectively. 

Contributions are typically collected by the CPF Board on behalf of each fund and deducted from employees’ wages.

Chinese Development Assistance Council (CDAC)

Administered by CDAC, a non-profit SHG serving the Chinese community. The fund offers financial assistance programs, skills development, and education initiatives. Contributions are required from Chinese Singapore citizens and permanent residents.

CDAC contribution rate:

Employees who wish to opt out must submit the CDAC opt-out form, which we will cover in the next section.

Mosque Building and Mendaki Fund

Overseen by Majlis Ugama Islam Singapura (MUIS), the MBMF was established to build and upgrade mosques and support the Muslim community through education and social programmes via Mendaki. 

Contributions are required from Muslim employees who are Singaporean citizens, PRs, and foreign employees.

MBMF contribution rate (allocation to Mosque and Mendaki components):

SINDA

Administered by the Singapore Indian Development Association (SINDA), the fund focuses on uplifting the Indian community through education, youth development, family support, and financial and social services. 

Employees who are of Indian descent (e.g., Bangladeshis, Bengalis, Tamils, etc.) and are Singapore citizens, PRs, or employment pass holders are required to contribute.

SINDA contribution rate:

For example, if you pay your Singapore employee of Indian descent a total of S$1,700 per month, you must withhold $5 on their behalf for SINDA. 

Eurasian Community Fund

Managed by the Eurasian Association (EA), the Eurasian Community Fund (ECF) supports those with European and Asian ancestry through education, welfare, and community programmes. 

Contributions are required from Eurasian Singapore citizens and permanent residents.

ECF contribution rate:

Employer’s role for SHG contributions

As mentioned earlier, it’s your responsibility as an employer to deduct the respective contribution rates from your employees’ total salaries in your payroll processes and send them to the CPF Board. 

Managing these contributions can be complex, as payroll calculations must be customized based on each employee’s community and income tier. With Omni, you can simplify the process by automating payroll processing and configuring payroll settings, which takes the stress out of CDAC, Mendaki, SINDA, and ECF deductions. Simply input your employees’ salaries and payroll details, and Omni will accurately calculate the required contributions, deduct the correct amounts, and disburse them seamlessly before processing monthly salaries.

Who’s Eligible to Opt Out and How it Works

For CDAC, Mendaki, SINDA, and ECF contributions, employees who do not wish to contribute must actively opt out. Here’s how it works and what you need to keep in mind to ensure payroll compliance: 

Who qualifies

Generally, your employees can opt out of CDAC, Mendaki, SINDA, and ECF contributions by contacting the respective self-help groups and submitting the required form.

For example, if an employee is Muslim and also Chinese, Eurasian, or of Indian descent, contributions will be deducted for both MBMF and the relevant ethnic fund. However, they may choose to opt out of one of these by submitting the corresponding CDAC, SINDA, or ECF opt-out form.

How to download and submit the form

Although SHG contributions are voluntary, they are auto-deducted unless an opt-out request is made. To opt out, employees must download, complete, and submit the relevant forms to CDAC, Mendaki (MBMF), SINDA, and ECF.

CDAC

• Download: CDAC Notification for Opting Out of Contribution to CDAC Fund
• Send to: cdacfund@cdac.org.sg

Mendaki

• Download: MBMF Change Application Form
• Send to: email: mbmf@muis.gov.sg or fax: 6359 1149

SINDA

• Download: SINDA Notification Opt-out of/Fix SINDA Fund Contribution form
• Send to: email: SINDAfund@sinda.org.sg or mail: SINDA at 1 Beatty Road, Singapore 209943

ECF

• Download: The Eurasian Association, Singapore Notification For Opting out of Contributions to the Eurasian Community Fund
• Send to: secretariat@eurasians.org

Processing timelines

The timeline to stop contributions vary depending on the fund. 

For CDAC, there is no formal acknowledgment; you may stop contributions immediately after the form is submitted. Other groups, however, will issue a certified copy or approval before you can stop deductions. MBMF typically processes requests within two weeks, while SINDA requires you to wait until the following month after receiving approval.

Managing opt-outs in payroll

Since SHG contributions are integrated in your payroll processing, the opt-out requests must also be managed carefully. With Omni, you can update an employee’s profile to stop CDAC, Mendaki, SINDA, and ECF deductions. Our system automatically recalculates salaries, ensuring accuracy and compliance with just a few clicks.

"Payroll calculations that used to take three to five working days can now be done in half the time with Omni." 
— Tengku Mohaizad, Group Head of HR Asia at Inspire Brands Asia

Key Employer Responsibilities for CDAC, Mendaki, SINDA & ECF

Managing SHG contributions can seem complex from the start, but with the right approach, it can be rather clear-cut. Here are some responsibilities and practical tips employers can take to ensure accurate and efficient CDAC, Mendaki, SINDA, and ECF deduction management.

• Invest in the right HR platform: A seamless tool like Omni helps you consolidate employee data, automatically deduct the correct CDAC, Mendaki, SINDA, or ECF contribution rates, calculate net salaries, and generate payslips.
• Assign employees to the correct fund: You are responsible for confirming which  CDAC, Mendaki, SINDA, or ECF groups the employee belongs to based on their employer record, ensuring that the right contributions are withheld. 
• Keep payroll systems updated: Your payroll platform reflects the latest contribution rates for all SHGs. A cloud-based system like Omni ensures timely updates and accurate calculations for compliance.
• Maintain opt-out forms or consent documentation: For employees who choose to opt out, you must retain signed opt-out forms and other consent records for potential audits and ensure compliance. Omni’s centralized document management stores these documents securely, allowing e-signatures, and sends real-time notifications when forms are completed.
• Report contributions accurately in payroll filings: You should submit up-to-date deductions reports with the accurate CDAC, Mendaki, SINDA, or ECF contributions withheld from your employees’ salaries. Automating this process through Omni ensures error-free reports and timely submissions.

Stay Compliant and Automate Contributions with Omni

Managing CDAC, Mendaki, SINDA, and ECF contributions can be a breeze with the right tools by your side. With Omni, every step of your payroll process, from assigning employees to the right fund to generating compliant reports, is built into one integrated platform.

How Omni simplifies SHG management for Singapore businesses:

• Consolidated employee data: Automatically classify employees by ethnicity and eligibility, ensuring Mendaki, Sinda, ECF, and CDAC contribution rates are accurate from the start.
• Updated and compliant payroll settings: Omni’s payroll keeps up to date with changing SHG contribution rates, so your calculations are always accurate.
• Effortless opt-out management: Centralize opt-out forms and consent documentation with secure storage, e-signatures, and real-time alerts when records are completed.
• Seamless reporting and filings: Generate detailed deduction reports for each SHG group to stay on top of CPF submissions and audit requirements.

Whether you’re handling contribution calculations, managing opt-outs, or preparing reports, Omni gives you peace of mind by simplifying the process, so you can focus on growth instead of the admin work. Book a demo with our team today to learn more about Omni.