Exploring the Chinese Development Assistance Council (CDAC)

Published November 21, 2016 · Updated October 16, 2026

When people search for CBAC Singapore, they are usually looking for the CDAC Fund, one of the country's four community self-help groups. Chinese Singapore citizens and permanent residents who have not opted out contribute S$0.50 to S$3.00 from their monthly wages, and employers must administer the deductions correctly.

In this article, we set out how the Chinese Development Assistance Council operates today. We cover the contribution bands effective 1 January 2015, eligibility, opt-out procedures, payroll responsibilities and assistance programmes.

What Is CBAC Singapore (the CDAC Fund) and Why Was It Set Up?

The CDAC is a non-profit self-help organisation jointly set up in 1992 to help lower-income members of the Chinese community become self-reliant through education, employment and family support.

The council was established as a joint initiative of the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Singapore Federation of Chinese Clan Associations (SFCCA). Its founding purpose was to promote upward social mobility within the Chinese community, consistent with Singapore's wider ethic of community self-help.

The organisation is one of Singapore's four ethnic self-help groups, alongside MENDAKI, SINDA and the Eurasian Association. These bodies operate within a national framework coordinated by the Ministry of Culture, Community and Youth (MCCY), each serving its own community.

CDAC's work is funded largely by the CDAC Fund, which is built from small monthly contributions deducted from the wages of Chinese employees who are citizens or permanent residents. The model is simple: those who are earning contribute a little, and the pooled funds support households that need help.

Who Must Contribute to the CDAC Fund?

Contribution is tied to ethnicity and residency status, not job type or employer size. Chinese Singapore citizens and permanent residents contribute; others fall under separate community schemes or none at all.

The scheme applies whether the employee works full-time, part-time or on contract. Deductions begin by default for eligible employees, but an employee may opt out by completing and submitting CDAC's opt-out form.

The scheme is deliberately inclusive on income. There is no wage level that removes the duty to contribute — even employees in the lowest band pay S$0.50 each month.

Other communities have parallel arrangements. Malay employees contribute to the Mosque Building and Mendaki Fund (MBMF), Indian employees to SINDA, and Eurasian employees to the Eurasian Community Fund. Foreign employees are outside the CDAC and Eurasian Community Fund schemes, but Muslim foreign employees contribute to MBMF and Indian Employment Pass holders contribute to SINDA.

The table below summarises who is within the net and who is not.

How Are CDAC Contribution Rates Applied to Employees?

The current CDAC contribution bands took effect on 1 January 2015, with monthly contributions ranging from S$0.50 to S$3.00 depending on the employee's total monthly wages.

Some readers arrive here after searching for the fund under a common misspelling of CDAC Singapore. There was no CDAC rate revision in 2024; the current rates have applied since 1 January 2015, with the lowest band covering gross monthly wages of S$2,000 or less. The CPF Board collects these monies on the council's behalf.

Employers apply the bands based on total monthly wages. When a salary change moves an employee into a different band, the applicable contribution changes from the following month.

Self-employed persons do not make CDAC Fund contributions through their annual MediSave filings, as CDAC Fund deductions apply to employees' monthly wages. The CDAC publishes the applicable rates for each income level on its website.

How Do Employers Handle CDAC Deductions on Payroll?

Employers must identify eligible employees, deduct the correct amount each month and remit it together with CPF contributions — no separate payment channel is needed.

For most businesses, these steps sit inside routine monthly payroll. Companies that have recently completed Singapore company incorporation often encounter CDAC deductions for the first time when hiring local staff. They may also need to consider GST registration once turnover thresholds are met.

Many businesses engage payroll services so that CPF, CDAC, MBMF, SINDA and the Skill Development Levy are computed accurately and remitted on time. Employers remit SHG contributions with CPF contributions.

1. Identify eligible employees

Payroll teams should confirm each employee's ethnicity and residency status at onboarding. Chinese citizens and permanent residents enter the CDAC scheme automatically; other employees are not enrolled.

2. Apply the correct wage band

Each payday, check the employee's total monthly wages against the current bands. Update the deduction whenever salary changes move the employee into a different band.

3. Deduct and remit with CPF

The employer deducts the contribution from wages and remits it together with monthly CPF contributions. The Central Provident Fund (CPF) Board administers collection on CDAC's behalf.

4. Handle opt-out notices properly

If an employee opts out of CDAC contributions, keep a copy of the endorsed opt-out form on file. Stop deductions once the form is submitted to CDAC, as continuing to deduct after the opt-out creates refund issues.

What Happens When an Employee Seeks a CDAC Opt-Out?

No — contributions cannot simply be switched off at an employee's request. An eligible employee may opt out by completing CDAC's opt-out form, endorsed by the employer, and the employer stops deducting once the form is submitted to CDAC.

The contribution is a standing community obligation, not a membership subscription. An employee who objects to paying, or finds the deduction burdensome, cannot direct the employer to stop deducting.

The proper route is CDAC's Opt-Out Form. The form must be endorsed by the employer, and the employer stops the deduction once the form is submitted to CDAC.

Employees who stop earning wages, such as retirees, naturally stop contributing because there is nothing to deduct. Self-employed persons do not make CDAC Fund contributions through their annual MediSave filings, as CDAC Fund deductions apply to employees' monthly wages.

What Support Programmes Does the CDAC Fund Actually Pay For?

CDAC Singapore funding supports education, financial and family support, employment help and eldercare through CDAC centres and partners islandwide.

Employers and readers who have searched for CBAC Singapore often ask what the fund actually pays for. In 2024, CDAC offered 8,000 bursaries and 15,000 places for tuition and enrichment. It also provided more dedicated and customised help to 1,400 families.

Access to most programmes is means-tested, with criteria set and periodically updated by the council. Beneficiaries and employers should check current eligibility before applying on a family's behalf.

1. Education and youth development

Bursaries, tuition programmes and enrichment classes help students from lower-income families stay on track in school. School-readiness schemes also support younger children before formal education begins.

2. Financial and family assistance

Households facing hardship can receive help with living costs and referrals to other support services. Caseworkers focus on longer-term stability rather than one-off relief.

3. Employment support

Job matching, career guidance and skills upgrading help unemployed or underemployed members of the community re-enter the workforce. Employers can complement community efforts by investing in structured training for staff in Singapore.

4. Eldercare and community services

Active ageing activities, befriending and outreach keep socially isolated seniors connected. These programmes run through CDAC centres and partner organisations across the island.

What Is the Difference Between a Contribution, a Donation and CDAC Assistance?

A CDAC contribution is a wage-banded payroll deduction from eligible employees' wages. A voluntary donation is freely chosen, while an assistance programme is support the CDAC provides to beneficiaries.

Confusion between these three flows causes most of the payroll queries we receive on CDAC matters. Employers deduct only the mandatory contribution.

Donations — whether top-ups from individual contributors or corporate gifts — go directly to the CDAC and sit outside payroll entirely. Assistance, in turn, is what the fund pays out to eligible households, not anything the employee pays in.

The comparison table in this article sets out the differences at a glance.

Conclusion

The Chinese Development Assistance Council has been a quiet fixture of Singapore's social compact since 1992. Its payroll mechanism touches virtually every employer with local Chinese staff. The current contribution bands — S$0.50 to S$3.00 per month — have applied since 1 January 2015. Employers remain responsible for correct deduction, timely remission with CPF contributions and proper handling of opt-out notices.

Getting CDAC Singapore payroll treatment right also means managing the parallel ethnic funds, updating deductions when wages change and keeping documentation audit-ready. Mistakes are rarely large in dollar terms, but they signal weak payroll controls and can trigger avoidable queries from employees and the authorities.

As a Corporate Services Provider, 3E Accounting Singapore helps businesses manage the full spectrum of statutory payroll obligations — CPF, CDAC, MBMF, SINDA and beyond — alongside incorporation, corporate secretarial and tax compliance. Speak to our team to keep your payroll accurate, compliant and worry-free.

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