Clause 7
Repeal and re-enactment of section 7
of Central Provident Fund (Amendment) Bill
Section 7 of the principal Act is hereby repealed and the following substituted therefor: —“Payment of interest on contributions in arrears7.—
Where the amount of the contributions which an employer is liable to pay under the provisions of section 6 of this Act in respect of any month is not paid within such period as may be prescribed the employer shall be liable to pay interest on such amount for every day such amount remains unpaid commencing from the first day of the month succeeding the month in respect of which such amount is payable and such interest shall be calculated at the rate of one and one-half per cent per month or the sum of five dollars, whichever is the greater.
The Board may in any case in which it thinks fit waive the payment of the whole or part of, or remit in whole or in part, any interest due or paid under subsection (1) of this section.”.