Key Takeaways
- CDAC, MBMF, SINDA, and ECF are monthly community fund deductions applicable to eligible employees in Singapore based on ethnicity, religious/community group, and wage band.
- Contribution rates are tiered by monthly wages, so employers must check the correct bracket each payroll cycle, especially when salaries, allowances, or variable pay fluctuate.
- These contributions are deducted automatically through the CPF system on an opt-out basis, meaning employers must facilitate the deduction unless the employee has formally opted out or adjusted their contribution.
- Accurate payroll setup matters for SME compliance, as incorrect CDAC, MBMF, SINDA, or ECF deductions can lead to under-deduction, over-deduction, employee confusion, and extra HR admin.
If you run payroll in Singapore, you’ll know that CPF isn’t the only line item nibbling away at an employee’s monthly wage. Alongside it are four community development funds or Self-Help Groups (SHGs)—ECF, SINDA, CDAC, and MBMF—each quietly collecting a few dollars a month per employee to support initiatives for Singapore’s major ethnic communities.
As Talenox neatly summarises, these donation funds are small in dollar terms but big on compliance obligations. But, getting the rates wrong is an easy (and entirely avoidable) payroll blunder.
For SME owners already juggling hiring decisions, cash flow, and the finer points of leadership styles that actually work, payroll admin can feel like the least glamorous part of the job. But CDAC, MBMF, SINDA, and ECF calculations are non-negotiable line items every employer must get right.
Read on to learn what each fund is, who it supports, and exactly how much you (or your employees) should be contributing in 2026.
Understanding CDAC Contribution
What Is CDAC?
The Chinese Development Assistance Council (CDAC) is a self-help group supporting lower-income Chinese Singaporean families through bursaries, tuition subsidies, and family services. It’s funded almost entirely by monthly contributions deducted from the wages of Chinese Singaporean and PR employees, unless they’ve opted out.
Importance of CDAC Contribution
Beyond ticking a compliance box, CDAC contribution sustains a genuinely useful safety net—one that many employees themselves may draw on for their children’s education or family support later down the road.
For employers, understanding the CDAC contribution rate matters because it’s deducted automatically through the CPF system. This means an incorrect setup can result in under- or over-deduction that HR then has to untangle later.
CDAC Contribution Rate in Singapore
CDAC Contribution Table: 2026 Updates
Here’s the CDAC contribution table currently in effect, useful as a quick CDAC contribution calculator reference when running payroll manually:
| Total sum of an employee’s wages for the calendar month | Contributions payable |
| ≤ S$2,000 | S$0.50 |
| > S$2,000 to S$3,500 | S$1.00 |
| > S$3,500 to S$5,000 | S$1.50 |
| > S$5,000 to S$7,500 | S$2.00 |
| > S$7,500 | S$3.00 |
As you can see, the CDAC rate is modest and tiered by wage band, making it one of the simpler deductions to calculate once you know which bracket an employee falls into.
Compulsory vs. Voluntary Contributions
Is CDAC Contribution Compulsory?
Technically, yes—but with a caveat. CDAC contribution is automatically deducted for all employees of Chinese ethnicity through the CPF Board’s payroll system, functioning as a default rather than a strict legal mandate. Employers are required to facilitate the deduction unless the employee has actively opted out.
Can I Opt Out of CDAC Contribution?
Yes. Employees can opt out (or adjust their contribution amount) by submitting a form directly to CDAC. Employers themselves can’t unilaterally exempt staff—the opt-out decision sits with the individual employee, not the business.
This is worth flagging clearly to new hires, especially if you’re a sole proprietor registering your business for the first time and setting up payroll processes from scratch.
MBMF Contribution Rate in Singapore
The Mosque Building and Mendaki Fund (MBMF) supports mosque development and Mendaki’s education and community programmes for the Malay/Muslim community. It’s deducted from Muslim employees’ wages and, like CDAC, runs on an opt-out basis.
Just a note that MBMF contributions are expected of all working Muslim Singaporeans, PRs and foreign employees.
MBMF Contribution Table: 2026 Updates
The MBMF rates are structured across eight wage bands, the widest tiering among the four funds:
| Total sum of an employee’s wages for the calendar month | Contributions payable |
| < S$1,000 | S$3.00 |
| > S$1,000 to S$2,000 | S$4.50 |
| > S$2,000 to S$3,000 | S$6.50 |
| > S$3,000 to S$4,000 | S$15.00 |
| > S$4,000 to S$6,000 | S$19.50 |
| > S$6,000 to S$8,000 | S$22.00 |
| > S$8,000 to S$10,000 | S$24.00 |
| > S$10,000 | S$26.00 |
Note the notable jump between the S$2,000–S$3,000 and S$3,000–S$4,000 bands — a detail payroll staff should double-check, particularly in wage-variable sectors like F&B, where fluctuating shift pay can nudge employees across brackets month to month.
If that sounds familiar, our piece on the challenges facing F&B businesses in Singapore covers more of the operational headaches unique to the industry.
SINDA Contribution Rate in Singapore
The Singapore Indian Development Association (SINDA) funds bursaries, mentoring, and family support programmes for the Indian community, financed through automatic payroll contributions from Indian employees who are Singapore Citizens, PRs or Employment Pass holders (including Bangladeshis, Bengalis, Parsees, Sikhs, Sinhalese, Telegus, Pakistanis, Sri Lankans, Goanese, Malayalees, Punjabis, Tamils, Gujaratis, Sindhis and all people originating from the Indian sub-continent).
SINDA Contribution Table: 2026 Updates
The SINDA contribution rate spans eight tiers:
| Total sum of an employee’s wages for the calendar month | Contributions payable |
| ≤ S$1,000 | S$1.00 |
| > S$1,000 to S$1,500 | S$3.00 |
| > S$1,500 to S$2,500 | S$5.00 |
| > S$2,500 to S$4,500 | S$7.00 |
| > S$4,500 to S$7,500 | S$9.00 |
| > S$7,500 to S$10,000 | S$12.00 |
| > S$10,000 to S$15,000 | S$18.00 |
| > S$15,000 | S$30.00 |
ECF Contribution Rate in Singapore
The Eurasian Community Fund (ECF) supports the Eurasian Association’s welfare and education initiatives, deducted from Eurasian employees’ wages on the same opt-out basis as the three other funds covered above (i.e. the CDAC, MBMF and SINDA funds).
Eurasian Singapore Citizens and PRs need to contribute to the ECF.
ECF Contribution Table: 2026 Updates
| Total sum of an employee’s wages for the calendar month | Contributions payable |
| ≤ S$1,000 | S$2.00 |
| > S$1,000 to S$1,500 | S$4.00 |
| > S$1,500 to S$2,500 | S$6.00 |
| > S$2,500 to S$4,000 | S$9.00 |
| > S$4,000 to S$7,000 | S$12.00 |
| > S$7,000 to S$10,000 | S$16.00 |
| > S$10,000 | S$20.00 |
Conclusion
CDAC, MBMF, SINDA, and ECF contributions are small, tiered, opt-out deductions based on an employee’s monthly wage and ethnicity. Getting the bands right keeps your payroll audit-proof and your employees’ goodwill intact.
Whether you’re calculating the CDAC rate for a handful of staff or running a full CDAC contribution calculator across a growing headcount, the principle is the same—always check the wage bracket, apply the right table, and keep records tidy.
Of course, sound payroll practices are just one piece of running a resilient SME. If cash flow is the more pressing puzzle, you may want to tackle that piece first!
Holistic Enterprise can help you explore flexible financing options suited to where your business is headed—from a business expansion loan to fuel growth, a capital loan for working capital needs, or a business term loan for more structured funding. We’re happy to listen and discuss your options!
Interested in getting your hands on fast business funding? Visit Holistic Enterprise to see the full range of solutions, or head to About Us to learn how we’ve been helping Singapore SMEs navigate exactly these kinds of decisions. Let’s speak—whenever you’re ready.
