Calculating Statutory CPF Deductions

Global Payroll for Singapore delivers the following statutory deductions for the common CPF contributions. The deductions are PeopleSoft delivered and maintained and are all defined with a calculation rule of Amount. CPF contributions are split into a number of different components and are made by the employer and the employee. Contributions made on ordinary and additional wages are separated and additional wages contributions are adjusted at the end of each year. In addition, it is possible to make voluntary contributions to CPF, which are not tax-deductible and need to be recorded separately.

Ordinary, additional, and voluntary deductions are delivered for both employers and employees:

Deduction	Description
CPF ORD ER Employer Ordinary CPF	Used for the employer's share of contributions made for ordinary wages. Amount = CPF FM ORD ER (Statutory)
CPF ORD EE Employee Ordinary CPF	Used for the employee's (payee's) share of contributions made for ordinary wages. Amount = CPF FM ORD PAYEE (Statutory)
CPF ADD ER Employer Additional CPF	Used for the employer's share of contributions made for Additional Wages. Amount = CPF FM ADD ER (Statutory)
CPF ADD EE Employee Additional CPF	Used for the employee's (payee's) share of contributions made for Additional Wages. Amount = CPF FM ADD PAYEE (Statutory)
CPF VOL ER Employer Voluntary CPF	Used for Voluntary CPF contributions made by the employer. Amount = Payee Level (Statutory)
CPF VOL EE Employee Voluntary CPF	Used for Voluntary CPF contributions made by the employee (payee). Amount = Payee Level (Statutory)

Deduction

Description

CPF ORD ER

Employer Ordinary CPF

Used for the employer's share of contributions made for ordinary wages.

Amount = CPF FM ORD ER

(Statutory)

CPF ORD EE

Employee Ordinary CPF

Used for the employee's (payee's) share of contributions made for ordinary wages.

Amount = CPF FM ORD PAYEE

(Statutory)

CPF ADD ER

Employer Additional CPF

Used for the employer's share of contributions made for Additional Wages.

Amount = CPF FM ADD ER

(Statutory)

CPF ADD EE

Employee Additional CPF

Used for the employee's (payee's) share of contributions made for Additional Wages.

Amount = CPF FM ADD PAYEE

(Statutory)

CPF VOL ER

Employer Voluntary CPF

Used for Voluntary CPF contributions made by the employer.

Amount = Payee Level

(Statutory)

CPF VOL EE

Employee Voluntary CPF

Used for Voluntary CPF contributions made by the employee (payee).

Amount = Payee Level

(Statutory)

Note: The CPF contribution amounts are calculated according to the rules and rates specified by the CPF Board. The CPF contribution rates are stored in the GPSG_CPF_ RATES table. The rates are accessed in the Global Payroll calculations using the CPF AR RATES array, using formula CPF FM RATE LOOKUP.

The CPF Board also acts as an agent collecting contributions to a number of community funds and levies. Global Payroll deductions and the required supporting elements are provided for each of them. Deductions are included for the contributions by employees to the following community funds:

Deduction	Description
MBMF Mosque Building Mendaki Fund	Used for the Mosque Building and Mendaki Fund. Amount = CPF FM MBMF CALC (Statutory)
CDAC Chinese Development Assistance Council	Used for the Chinese Development Assistance Council Fund. Amount = CPF FM CDAC CALC (Statutory)
SINDA Singapore Indian Development Association	Used for the Singapore Indian Development Association Fund. Amount = CPF FM SINDA CALC (Statutory)
ECF Eurasian Community Fund	Used for the Eurasian Community Fund. Amount = CPF FM ECF CALC (Statutory)
SHARE SHARE Programme Donations	Used for the Community Chest donations. Amount = Payee Level (Statutory)

Deduction

Description

MBMF

Mosque Building Mendaki Fund

Used for the Mosque Building and Mendaki Fund.

Amount = CPF FM MBMF CALC

(Statutory)

CDAC

Chinese Development Assistance Council

Used for the Chinese Development Assistance Council Fund.

Amount = CPF FM CDAC CALC

(Statutory)

SINDA

Singapore Indian Development Association

Used for the Singapore Indian Development Association Fund.

Amount = CPF FM SINDA CALC

(Statutory)

ECF

Eurasian Community Fund

Used for the Eurasian Community Fund.

Amount = CPF FM ECF CALC

(Statutory)

SHARE Programme Donations

Used for the Community Chest donations.

Amount = Payee Level

(Statutory)

Note: The rate of contribution to the first four of these deductions is a fixed amount, determined by the employee’s monthly wages. They are automatically calculated using Global Payroll brackets to determine the amounts. Contributions to the SHARE Programme are entirely up to the employee and are a flat amount deduction.

Deductions are also included for the following levies on the employer:

Deduction	Description
FWL Foreign Worker Levy	This is charged for each foreign worker employed. The amount is dependent on the type of worker. A bracket is used to determine the rate applicable for each worker type. Amount = CPF FM FWL CALC (Statutory) Note: When a foreign worker convert from Work Permit to S-Pass in mid-month, the FWL should be prorated for the period when the foreign worker is holding the Work Permit as well as the period when he is holding the S-Pass.
SDL Skills Development Levy	This is charged at the rate of 1% of wages or 2 SGD, whichever is greater, for all employees who earn less than 2000 SGD per month. This is calculated using a Global Payroll Formula. Amount = CPF FM SDL CALC (Statutory)

Deduction

Description

FWL

Foreign Worker Levy

This is charged for each foreign worker employed. The amount is dependent on the type of worker. A bracket is used to determine the rate applicable for each worker type.

Amount = CPF FM FWL CALC

(Statutory)

Note: When a foreign worker convert from Work Permit to S-Pass in mid-month, the FWL should be prorated for the period when the foreign worker is holding the Work Permit as well as the period when he is holding the S-Pass.

SDL

Skills Development Levy

This is charged at the rate of 1% of wages or 2 SGD, whichever is greater, for all employees who earn less than 2000 SGD per month. This is calculated using a Global Payroll Formula.

Amount = CPF FM SDL CALC

(Statutory)

Note: These levies don't affect employee's pays, but are included as deductions as a convenient means of calculation, and for easy payment through the EFT process.

Note: Earnings, CPF ORD LMT, and CPF ORD NXT are used to track the monthly contributions of the ordinary wages to the CPF yearly accumulators.

These earnings can be overridden at the payee level, giving the user the flexibility to adjust the accumulators.