|1. WHO IS ELIGIBLE TO CLAIM MAKE-UP PAY?|
A PNSman can claim make-up pay if he suffers a loss in his civilian income as a result of attending NS call-up. Make-up pay is the difference between his civilian income and his service pay. However, serving NS on off days or weekends when the PNSman would normally not be working, are not claimable since there is no loss in income.
For PNSman who is employed by more than one employer
For PNSman who is employed as self-employed
- The PNSman can claim make-up pay for each employer
For PNSman who is employed and on No Pay Leave
- The PNSman can claim make-up pay for both his employment income as well as his self-employed income if he suffers a loss. He would need to complete part 1 to part 3 of the new combined claim form.
For PNSman who is employed in Ministries or Statutory Boards
- The PNSman is not eligible to claim make-up pay, as he does not suffer any loss in civilian income during the period of his NS-call-up. He will be paid service pay.
For PNSman who is unemployed or students
- The PNSman will continue to receive his civilian pay from the respective Ministry or Statutory Board during the period of his NS-call-up.
- The PNSman will be paid service pay only as he would not suffer any loss of civilian income during the period of his NS-call-up.
|2. HOW TO FILE A MAKE-UP CLAIM?|
Make-up claim can be submitted online via E-Claims (SPF) or using the hardcopy designated claim forms.
For online submissions:
To reduce processing time, Employers are strongly encouraged to use our online service by logging into E-Claims (SPF)
If the PNSman / employer choose to submit claims manually, claim forms can be obtained from the Download sections below. Alternatively, the PNSman /Employer can also obtain a copy of the claim form from the Divisions/Units where the PNSman is attached.
|3. WHAT IS THE PROCEDURE FOR EMPLOYED PNSMAN TO CLAIM MAKE-UP PAY?|
There are 2 options for employed PNSman to claim Make-Up Pay.
a) What are the 2 options for an employed PNSman to claim Make-Up Pay?
Option 1: Direct Reimbursement to Employers of Claims for NS Training Scheme (DIRECT)
Option 2: PNSman Claims Reimbursement from SPF
- Employer would continue to pay the employee as per the company's pay schedule when he attends NS call-up.
- Thereafter, employer would claim reimbursement (service pay and make-up pay) directly from SPF.
- This is to avoid disruptions to the PNSman's civilian pay cycle since the employers will continue to pay the PNSman during the NS call-up. PNSman does not have to make any claims.
- To opt into this scheme, employers would need to REGISTER for this service with MINDEF.
Points to remember
- Employer will certify the make-up pay claim & submit to SPF.
- PNSman will be reimbursed directly by SPF thereafter.
- Make-up pay claims can be submitted online via http://www.htns.com.sg/spf/NSPAY or using hardcopy claim forms (NP77)
If a PNSman is a shift worker
If a PNSman is not paid on a monthly rate
- indicate his working hours and off / rest days in the month(s) of the NS call-up in the "Remarks" column.
If a PNSman is called up for his NS call-up for 1 day or less and is scheduled to work on the same day
- indicate his daily or weekly rate.
b) What are the types of allowances that an employed PNSman can/cannot claim?
- indicate the working hours in the "Remarks" column.
|The allowance must be received on a regular basis for at least 4 months out the last 6 months preceding the NS training||If allowance is not received for at least 4 months out of the past 6 months and no reason is provided, this may result in the allowance being disapproved|
|The allowance must be taxable and subject to CPF contribution||Examples of allowances of a reimbursement nature: Meal Allowance, Travelling Allowance, Laundry Allowance, Entertainment Expenses|
|It must be included in the NSman's employment or service contract|
|It must not be of a reimbursement nature|
c) How to compute loss of civilian income during PNS-call-up?
The formula used to compute NSman's loss of income:
Employer should use the same formula used in the company for pro-rated pay computation. E.g. NS Call-up period from 1 Apr to 20 Apr 2006 (20 days) and company is on a 5-day work week.
= [Total Salary] x [Number of working days during NS Call-up period] Divided by [Number of working days in the month]
= [$800] x [14 (less Sat & Sun during the NS Call-up period)] Divided by [20 (less Sat & Sun in Apr 2006)]
Public holidays should be considered as paid working days and should not be excluded from the computation of loss of income.
d) How should Employer adjust the civilian income in the month of NS training?
Employer should compute the actual amount due to the NSman for the remaining days that he works in the company in the month of NS training instead of simply deducting off the amount paid by SPF from his salary if he is receiving allowances which are not of a fixed quantum.
NS call-up from 1 Jun to 17 Jun 05 and company is on a 5-day work week
No. of working days outside call-up: 9 days
No. of working days within call-up: 13 days
No. of working days in Jun 05: 22 days
Basic salary = $2000 p.m
Fixed Shift allowance = $200 p.m
Variable Overtime allowance = $350 p.m
(based on average of the last 6 mths prior start of NS call-up
Actual overtime clocked in Jun 05 = $150 (for period 18 Jun - 30 Jun 05)
Amount claimed from SPF (for NS Call-up period from 1 - 17 Jun 05)
= ($2000 + $200 + $350)pm x 13 working days within call-up / 22 working days in the month
= $1506.82 for NS call-up
Amount paid by employer in Jun 05
= ($2000 + $200) x 9 working days outside call-up / 22 working days in the mth + $150 (OT)
Total Amount received by NSman in Jun 05
= $1506.82 + $1050
e) What are the supporting documents required?
For PNSman who is employed for less than 3 months prior to NS-call-up:
For PNSman who is employed as Directors of Companies and claiming Directors' Fees
- Letter of appointment
- Latest payslips / pay records
- CPF receipts (Form 90/90A)
NOTE: Claims for Director's fees received on an annual basis will be paid by SPF when the PNSman receives his annual payment from his company and the relevant supporting documents are made available. The make-up pay claim must however be lodged within a period of 3 months.
- Director's resolution that PNSman will not be paid the director's fees during his NS call-up
- Director's resolution stating amount of director's fees approved and payable to the PNSman for the financial period covering the call-up or if this is not available, the director's resolution for the preceding financial year
- Payment vouchers for 3 months prior to the NS call-up
- Latest Form IR8A
- Latest Notice of Assessment available
For PNSman who is employed by overseas companies and stationed overseas
All documents submitted must be certified by the company's authorised official. Any false declaration or misleading information given in respect of the claim constitutes an offence under Regulation 11 of the Enlistment (Loss of Salary & Wage-Reimbursement) Regulation, 1978.
- Letter of appointment
- Work permit or Employment pass
- Payslips / pay records for 3 months prior to NS call-up
f) Who contributes the employer's CPF during NS-call-up?
In accordance with CPF regulations, both the employer and PNSman must continue to contribute their share of CPF at the same rate throughout the PNSman's NS call-up.
|4. WHAT IS THE PROCEDURE FOR SELF-EMPLOYED PNSMAN TO CLAIM MAKE-UP PAY?|
There are 2 options for self-employed PNSman to claim make-up pay. Choose the option that suits you best. An option once made is irrevocable.
a) What are the 2 options for a self-employed PNSman to claim Make-Up Pay?
Income Tax Option
Average Income Option
- The PNSman's monthly income would be based on the average monthly trade (self-employment) income shown in his Income Tax Notice of Assessment (NA) for the year of NS call-up.
- Since the trade income for the year of training will not be available at the time the PNSman submits a claim, a provisional payment would be made based on his latest available trade income. An adjustment would be made when the trade income for the year of call-up is available.
- If the PNSman is underpaid, arrears will be paid to him while any amount overpaid will be recovered from him. Such overpayments will be recovered from subsequent make-up claims.
- The trade income for the provisional payment as well as the final adjusted amount will be obtained directly from IRAS for claimants using this option.
b) What are the types of income that a PNSman can/cannot claim?
- The PNSman's monthly income will be based on his average income earned in the 6 months before the NS call-up.
|Net Profit / Trade Income||Interest Income earned on Fixed Deposits|
|Commission (for Insurance Professionals)||Rental Income|
|1st Year, Single Premium and Production Commission (based on personal sales effort)||Profit on Sales of Fixed Assets|
|An additional 42% of 1st year commission in place of Renewal Commissions for Life Insurance Agents||Overriding and Renewal Commissions|
|Accident and general insurance commission||This includes overriding commission or bonus derived from multi-level marketing.|
|Proprietor's / Partner's Salary or Net Profit||Ex-gratia Income|
|Fixed Expenses (e.g. rental, staff salary & CPF) can be claimed if :||Hire-purchase instalment payments|
|Average Income Option is selected.|
|Company has to be closed during the NS call-up. The claim is submitted at least 3 weeks before the commencement of NS call-up.|
c) What are the supporting documents required?
Income Tax Option
Average Income Option
- A copy of Contract Agreement or Letter of Appointment - For first time claimants or when there are changes to previous claims
- For Insurance Agents / Managers - A commission statement (certified by the company) showing the breakdown of commissions into the 1st year, renewal, overriding, single premium and bonus commissions for the year immediately preceding NS-call-up.
- For Remisiers - A statement from the company on the amount of commission earned by PNSman during his NS call-up derived from trading done on his behalf. A 'nil' return is required if no commission was paid to him during his NS call-up. (Please fax or mail this confirmation/letter to PNS Payment section within 2 weeks after the NS call-up).
- Trading, Profit & Loss (TPL) statement for the 6 months immediately preceding the NS call-up - Latest Available Year-end TPL statement declared for Taxation
- Income Tax Documents - Latest Income Tax Return (Form B), Notice of Assessment or Partnership Income Tax Return (Form P)
- A copy of Contract Agreement or Letter of Appointment - for first time claimants or when there are changes to previous claims
- For Insurance Agents / Managers - A commission statement (certified by the company) showing the breakdown of commissions into the 1st year, renewal, single-premium, overriding and bonus commissions for each of the 6 months immediately preceding NS call-up.
- For Remisiers - a statement from the company on the amount of commission earned by PNSman for the 6 months immediately preceding NS as well as during his NS-call-up derived from trading done on his behalf. A 'nil' return is required if no commission was paid to him during his NS call-up. (Please fax or mail this confirmation/letter to PNS Payment section within 2 weeks after the NS call-up).
|5. WHAT IS THE DEADLINE FOR SUBMITTING A CLAIM?|
Make-Up Pay claim should not be submitted too early before NS-call-up, as the pay details may not be accurate and current. The following serves as a guide:
Make-up pay claims MUST be submitted not later than 3 months after the payment of service pay. Supporting documents can be submitted later if they are not available at the time of submission of the claim form.
- E-Claims - 3 days before NS call-up commences.
- E-MUP Batch Submission - 3 days before NS call-up commences.
- Manual hardcopy claims - 21 days before NS call-up commences.
|6. WHAT IS THE DEADLINE FOR SUBMITTING AN APPEAL?|
When there is a dispute in the quantum approved by the Designated Authority, the PNSman or his employer may appeal in writing to PNS Payment section, not later than 3 weeks from the date on which the Make-Up Pay is paid. The following details have to be given:
- the amount of Make-Up Pay
- claimed the grounds of dispute
|7. WHAT IF THE PNSMAN RESIGNS/CHANGE JOB/CHANGES IN INCOME?|
Employer must notify us immediately if there are any changes to PNSman's salary after the submission of the claim as a result of:
- Pay Revision
- Salary Adjustment before or during the NS call-up and provide the relevant details to make the necessary adjustment to his make-up claim.
|8. WHAT IF THERE IS A CHANGE IN CALL-UP PERIODS?|
If there is a change in the NS call-up period after the claim has been submitted, a fresh claim must be submitted. However, if the new NS call-up period overlaps any part of the original NS call-up period stated in the claim submitted earlier, then a fresh claim need not be submitted. The necessary adjustment will be effected by PNS Payment section accordingly.
|9. WHAT DOES A PNSMAN/ EMPLOYER NEED TO DO IF THERE IS A CHANGE IN THE BANK ACCOUNT?|
All payments due to PNSman are credited into his bank account, provided by the PNSman.
To ensure that payments are credited into the correct bank account, please update any changes immediately via eSelf-update.
For Employers on the DIRECT Scheme who wish to change their bank account, please login to change in company's particulars.
|10. HOW ARE PNSMEN/EMPLOYERS NOTIFIED OF THEIR PAYMENTS?|
PNSman/Employer can view the details of the payments by accessing the e-payslip online.
|11. WHAT IS THE TAX RELIEF QUANTUM?|
Tax Relief- $3000
A PNSman will receive a tax relief of $3,000 if he performs at least one recognized NS activity during the Year of Assessment.
Tax Relief- $1500
A PNSman will receive a tax relief of $1,500 if he did not perform any NS activity during the Year of Assessment.
If he has completed his NS and are above the statutory age limit of 50 years for Senior Officers and 40 years for NS Police Officer, he will continue to receive $1,500 tax relief annually.
A PNSman will qualify for the above only if he has not committed any disciplinary or criminal offences during the Year of Assessment.
His spouse and parents will also qualify for tax relief of $750.
Last updated on 09 May 2011