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GM'S FOREWORD | |||
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1.THE CENTRAL PROVIDENT FUND (CPF) BOARD |
The CPF was set up in 1955 to provide financial security for workers in their retirement or when they are no longer able to work. Today, this scheme has evolved into a comprehensive social security savings system that provides its members with financial security in old age. Over and above that, CPF savings help to meet the needs of families in healthcare, home-ownership, family protection and asset enhancement. The CPF is jointly supported by the employees, employers and the Government. There are currently more than 80,000 employers paying CPF for 1.2 million workers. |
2.EMPLOYERS AND THEIR OBLIGATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Definition of an
employer An employer is any person, company, association or body of persons, whether or not incorporated, employing an employee. It includes any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer. Registration with CPF Board Every employer has to register with the CPF Board. To register, please complete the Employer Registration Form (CPF/ 1) and submit it to the Board. For employers who are trading in their own names or who have domestic workers only, registration must be done under the name shown in their identity card or passport. The employer will then
be given an Employer Reference Number and a Payment Advice (Form CPF 91)
to make payment. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Employer's Particulars | ||||||||||||||||||||||||||||||||||||||||||||||||||
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3. CPF FOR EMPLOYEES | ||||||||||||||
Definition of an Employee An employee is any person who is employed in Singapore and any Singaporean seaman who is employed by an employer under a contract of service or other agreement entered into in Singapore. CPF contributions are also payable for the following: | ||||||||||||||
a. | Company
Directors Salaried directors of any company are considered employees if they are engaged under a contract of service and paid a salary on top of fees received. CPF contributions are not payable on directors' fees voted to them at general meetings. | |||||||||||||
b. | Part-time/ Casual
Employees CPF contributions are payable for part-time/ casual employees whose wages exceed $50 a month. CPF contributions are also payable for all school-leavers or students working on a part-time or temporary basis, except for the following groups: | |||||||||||||
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Students working during their gazetted school holidays, | |||||||||||||
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Tertiary students on full-time industrial attachment, and | |||||||||||||
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Tertiary students employed under a training programme approved by their institutions. | |||||||||||||
c. | National Service
(Reservist in-camp training) U nder the Enlistment Act, CPF is payable for national servicemen on reservist service. The employer has to pay the CPF contributions on the wages given by MINDEF. The employee's share of contributions can be recovered from the employee's wages. | |||||||||||||
d. |
Concurrent
Employment However, if the employee's combined monthly income exceeds the CPF salary ceiling of $6,000, the employee may apply to the Board to limit the total of his share of contributions on Ordinary Wages (but not Additional Wages) as follows:
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The letter, addressed to the Employer Registration Branch, should indicate: | ||||||||||||||
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Amount of wages, | |||||||||||||
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Employee's share of CPF, and | |||||||||||||
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Amount of CPF to be paid through each employer. | |||||||||||||
The employers have to continue to pay their share of CPF contributions without any limits. | ||||||||||||||
e. |
Singapore
Permanent Residents (SPRs) If the employer and employee have not been making any mandatory CPF contributions before the conversion, they will be required to contribute at reduced rates in the first two years. (Please see Annexes C and D for the contribution rates.) The employer and employee can jointly apply to the Board to contribute CPF at the full rates if both parties agree to do so. Such contributions will be tax-deductible. However, this application is not reversible i.e. the employee will not be able to revert back to the reduced rates even if he changes employment. | |||||||||||||
4.EXCEPTIONS TO PAYMENT OF CPF FOR EMPLOYEES | ||||||||||||||||||||||||||||
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5. COMPUTATION OF CPF | ||||||||||||||||||||||||||||||||||||||||||||||
Definition of
Wages For the purpose of computation, "wages" is classified as follows: | ||||||||||||||||||||||||||||||||||||||||||||||
a. |
Ordinary
Wages The maximum CPF amount payable on Ordinary Wages is $2160 a month, based on Ordinary Wages of $6,000 a month. | |||||||||||||||||||||||||||||||||||||||||||||
b. | Additional Wages
Additional Wages are wages which are not granted wholly and exclusively for the month. Examples are the annual bonus, leave pay, incentive and other payments made at intervals of more than a month. (For the maximum CPF payable on Additional Wages, Annex E.) | |||||||||||||||||||||||||||||||||||||||||||||
c. |
Total
Wages Total Wages = Total
Ordinary Wages + Total Additional Wages. | |||||||||||||||||||||||||||||||||||||||||||||
Wages Not Paid
Monthly Example
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SEPTEMBER 1999 | ||||||||||||||||||||||||||||||||||||||||||||||
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Calculating CPF on Additional Wages (Additional Wage Ceiling) | ||||||||||||||||||||||||||||||||||||||||||||||
a. |
Additional Wage
Ceiling | |||||||||||||||||||||||||||||||||||||||||||||
b. |
Year-End
Adjustment | |||||||||||||||||||||||||||||||||||||||||||||
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Use the preceding year's Additional Wage Ceiling for payment of CPF on Additional Wages. | |||||||||||||||||||||||||||||||||||||||||||||
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Make year-end adjustment when the current year's Additional Wage Ceiling is known, and | |||||||||||||||||||||||||||||||||||||||||||||
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Pay the shortfall (if any) together with December's contributions. | |||||||||||||||||||||||||||||||||||||||||||||
c. |
Change Of Employment | |||||||||||||||||||||||||||||||||||||||||||||
i) |
When an employee
starts employment | |||||||||||||||||||||||||||||||||||||||||||||
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Pay the contributions on Additional Wages in full. | |||||||||||||||||||||||||||||||||||||||||||||
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Calculate the Additional Wage Ceiling at the end of the year, based on his wages earned under your employment in the current calendar year, or | |||||||||||||||||||||||||||||||||||||||||||||
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Claim the excess contributions (if any) by submitting the refund application form, ES/ CAPR, to the Refund Admin Section. | |||||||||||||||||||||||||||||||||||||||||||||
ii) |
When an employee resigns If your employee resigns in the current year: | |||||||||||||||||||||||||||||||||||||||||||||
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Calculate the Additional Wage Ceiling based on the few months of employment during the current year. | |||||||||||||||||||||||||||||||||||||||||||||
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Pay the shortfall (if applicable) together with the employee's contribution for his last month of employment, or | |||||||||||||||||||||||||||||||||||||||||||||
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Claim the excess contributions (if applicable) by submitting the refund application form, ES/ CAPR, to the Refund Admin Section. | |||||||||||||||||||||||||||||||||||||||||||||
d. | Change In Age
Group If there is a shortfall in CPF contributions on Additional Wages (due to year-end adjustments) and the employee has reached the next age group during the year, the rate to be applied on the shortfall will be the same rate for the month in which the Additional Wages were paid. Any shortfall should be paid together with December's contributions or contributions for the employee's last month of employment, whichever is applicable. | |||||||||||||||||||||||||||||||||||||||||||||
e. | Concurrent Employment
Employers who have employees working for more than one employer will have to pay the CPF (employer's and employee's share) on Additional Wages as if the employee is in single employment. | |||||||||||||||||||||||||||||||||||||||||||||
i) |
For the
employer: The excess employer's share of CPF contributions (if any) may be refunded to the employer on receipt of sufficient information by the CPF Board. | |||||||||||||||||||||||||||||||||||||||||||||
ii) |
For the
employee: | |||||||||||||||||||||||||||||||||||||||||||||
Excess
Contributions Paid on Additional Wages Application for refund of CPF contributions paid in excess is only applicable to employers and employees paying compulsory contributions. This must be submitted after the end of the calendar year when Total Wages are known. For employees who have already resigned, the application for refund may be submitted in the current year, together with a copy of the employee's resignation letter. For enquiries, please contact Refund Admin Section at 229803 / 229805. | ||||||||||||||||||||||||||||||||||||||||||||||
6. REFUND OF CONTRIBUTIONS PAID IN ERROR |
Employers who may have inadvertently paid more CPF than required may apply for a refund within one year from the date of payment. Applications must be made using ES/ Form 40 and ES/ Form 40A, available from any CPF office. |
7. ENFORCEMENT OF CPF CONTRIBUTIONS | |||
a. |
Grace
Period | ||
b. | Enforcement The Board takes a serious view of employers who pay late or do not pay CPF contributions for their employees. Upon detection of late payment or non-payment of contributions, action will be taken to recover any arrears or CPF contributions owing. | ||
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Step 1: Employers
in default | |||
Step 2:
Employers who fail to pay before the court hearing. If the employers fail to pay up, they will be taken to court. The court will order them to pay the contributions, penalty interest and a court fine. | |||
Step 3:
Conviction If the employers still do not pay up, then a Warrant is issued to seize and sell the company's assets. Bankruptcy or winding up proceedings may also be instituted against employers. However, this will only be done as the last resort. | |||
c. | Industry Surveys The Board also conducts spot checks on various industries to determine the level of compliance. Such checks involve inspecting an employer's wage records for the past 6 years. If the employer is found to have underpaid or omitted to pay contributions, the arrears for the 6-year period, plus penalty interest will be computed and recovered. | ||
d. | Interest on Late Payment Interest on late payment is calculated daily at the rate of 1.5% per month, starting from the 1st day of the month following the month in which the contributions are payable. The minimum interest payable is $5 per month. | ||
e. |
Keeping the
Employees Informed | ||
8. MODE OF SUBMITTING CONTRIBUTION DETAILS | ||||
Employers may use any of the following methods to submit their CPF contribution details. In line with the Government's efforts to promote electronic transactions, employers are strongly encouraged to submit their contribution details electronically. | ||||
a. |
CPF/IRAS
Line | |||
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Convenience as contribution details are captured in the personal computer and sent via Singapore Network Services (SNS), | |||
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24-hour service daily, so information can be updated and transmitted anytime, | |||
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Timely payment through GIRO, and | |||
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Electronic Record of Payment for safekeeping. | |||
Registration with SNS and a one-time registration fee of $100 is required if the employer is not using any SNS network. There is also a monthly fee of $20 to maintain an electronic mailbox to deposit payment information, and a yearly software licence fee of $150. | ||||
For more information, please call: | ||||
SNS : 775
5977 CPF Board : 1800-226 3877 IRAS : 1800-356 8633 | ||||
b. |
CPF PAL-Internet
(Employer Returns) Employers can choose to use either the online form or the file transfer service to submit their contribution details. | |||
i) |
Online form
This is recommended for employers without a payroll system and who have less than 50 employees. All the employer needs to do is: | |||
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Update the details on the online form, | |||
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For subsequent submissions, retrieve the details of the last submission as a template and make the necessary amendments, and | |||
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Transmit the form. | |||
ii) |
File transfer service
The Netrust application, registration and GIRO forms are available at the Board's website and all CPF offices. | |||
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Extract the information from the payroll system, and | |||
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Transmit it across as a electronic file. | |||
To use the service, | ||||
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Complete and submit the registration form for the Employer Returns service with the Board, | |||
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Apply for a Netrust Card for each staff using the service through the Board, and | |||
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Apply for a GIRO Account with the Board. | |||
The Netrust application form, registration and GIRO forms are available at the Board's website and all CPF offices. | ||||
c. | CPF Payment Forms
Employers using the manual payment forms to submit their contribution details must complete and return the following forms together: | |||
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Payment Advice (Form CPF 91), giving details of the CPF contributions payable. | |||
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Continuation forms for Payment (Form CPF 91A), if the employer has more than five employees. | |||
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New Employee Contribution Form (Form CPF 92), if the employer is paying CPF contributions the first time for his new employee. | |||
In the event that the
employer misplaces these forms, he must bring along a letter of
authorisation and the identity card of the authorised person to obtain a
fresh form. The Record of Payment (Form CPF 90) will be sent once the contribution details have been received, and payment processed. The payment form for the following month's submission will be enclosed together with the Record of Payment. Employers are advised to check their Record of Payment and inform the Board immediately of any inaccuracy in their payment record. The Record of Payment should be kept by the employer for future reference. Employers who have misplaced their payment records and want previous records from the Board will have to pay for the service. | ||||
9. MODE OF PAYMENT | ||||||||||
CPF contribution details must be submitted together with CPF payments. Payment may be made in the following manner: | ||||||||||
a. |
Inter-bank
GIRO The DDA form authorises the employer's bank to deduct the monthly CPF contributions from his bank account. The amount deducted is based on the contribution details submitted by the stipulated date. | |||||||||
Standing Instructions Small employers (1-10 employees) whose CPF contributions do not vary from month to month can give a one-time standing instruction to the Board to pay a fixed amount for their employees every month. All they need to do is: | ||||||||||
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Complete and return the Standing Instructions (SI 1/ GIRO) form, | |||||||||
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Complete the Direct Debit Authorisation (DDA) form, and | |||||||||
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Submit the 2 forms together to the Board. | |||||||||
The same amount will automatically be deducted each month through GIRO. If there are changes taking effect from a particular month, the employer has to complete a new Standing Instructions form. This will supercede any previous instructions given. For additional payments such as bonuses and leave pay, the employer need only submit a payment advice giving the contribution details for the additional payments. He need not submit a new Standing Instructions form. The additional payment will also be deducted through GIRO. | ||||||||||
b. | System for Handling
Inter-bank Funds Transfer (SHIFT) This is for employers whose contributions vary from month to month. Just: | |||||||||
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Complete an authorisation form from the bank, | |||||||||
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Get it signed by the company signatories, and | |||||||||
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Return it to the bank. | |||||||||
The form authorises the bank to transfer the company's funds to the CPF Board's bank account, and must be completed every month. | ||||||||||
c. | E-Payment For employers who want to retain tight control over their cash flow and yet enjoy the convenience of electronic payment, e-payment is the ideal option. With e-payment, employers get to initiate the deduction. In addition, the bank also does an immediate check to determine if there are sufficient funds, so payment transactions can be confirmed immediately. To use the free e-payment system, employers need to:
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d. | Cash Cash payment can be made at any Post Office or at the Board's Main Office (79 Robinson Road, Singapore 068897). A temporary receipt will be given for cash payments at the Post Office. Please do not send cash through the post. | |||||||||
10. EMPLOYER SERVICES |
Support
Services CPF
Business News |
11. AGENCY SERVICES | ||||||||||||||||||||||
The CPF Board is also the collecting agent for the following: | ||||||||||||||||||||||
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Foreign Worker Levy | |||||||||||||||||||||
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Skills Development Levy | |||||||||||||||||||||
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Mosque Building and Mendaki Fund | |||||||||||||||||||||
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SINDA Fund | |||||||||||||||||||||
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CDAC Fund | |||||||||||||||||||||
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Eurasian Community Fund | |||||||||||||||||||||
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Share Programme Donations | |||||||||||||||||||||
Note
Foreign Worker Levy (FWL) However, if a work permit holder on the FWL Scheme is granted Permanent Resident (PR) status, he will be placed on the CPF scheme. This will take effect from the day he is granted PR status. (Please see Page 06, Singapore Permanent Residents.) Mode of
Payment Late Payment of
Levy Work Permit
Cancellation For more details, please contact the Work Permit Department at 1800-438 5122. Refund of Levy
Paid in Error | ||||||||||||||||||||||
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Write in or use the prescribed form (ES/ FWL/ 7) available from the Foreign Worker Levy Section of the CPF Board, and | |||||||||||||||||||||
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Submit it together the relevant documents (i. e. receipt of payment and cancellation letter from the Work Permit Department, if applicable). | |||||||||||||||||||||
Skills Development Levy (SDL) For employees whose gross salary is below $200 per month, the minimum SDL of $2 is still payable, even if the employee only works part of the month. Remuneration means any wage, salary, commission, bonus, leave pay, overtime pay, allowances (including housing or other like allowance) and other emoluments paid in cash. | ||||||||||||||||||||||
Example: | ||||||||||||||||||||||
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Total SDL payable is $19. Any cents calculated should be ignored for total SDL payable. The SDL collected is channelled into the Skills Development Fund, which provides grants to companies sending their workers for training. Mosque Building and Mendaki Fund (MBMF) | ||||||||||||||||||||||
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NB : An employee whose salary for a particular month is less than $200 need not contribute to the Fund | ||||||||||||||||||||||
Gross income includes basic salary and any other allowances which are CPF payable. | ||||||||||||||||||||||
SINDA Fund All working Indians [including the following groups with ethnic origins in the Indian sub-continents such as Bangladeshi, Bengali, Goanese, Gujarati, Indian, Malayalee, Pakistani, Parsee, Punjabi, Sikh, Sinhalese, Sri Lankan (Ceylonese), Tamil and Telugu in Singapore are required to contribute monthly to the SINDA (Singapore Indian Development Association) Fund, according to the income levels indicated below: | ||||||||||||||||||||||
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NB : Foreign workers on Foreign Worker Levy Scheme need not contribute to the Fund | ||||||||||||||||||||||
The prescribed amounts will be automatically deducted from the wages of the employees. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from SINDA and submit them to their employers. | ||||||||||||||||||||||
CDAC Fund All working Chinese Singaporeans and Permanent Residents may contribute monthly to the Chinese Development Assistance Council (CDAC) Fund, according to the wage levels below: | ||||||||||||||||||||||
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The prescribed amounts will be automatically deducted from the wages of Chinese employees. If employees wish to contribute different amounts or opt out, they have to get the relevant forms from CDAC and submit them to their employers for endorsement before forwarding them to the CDAC. | ||||||||||||||||||||||
Eurasian Community Fund All working Eurasian Singapore citizens and Permanent Residents may contribute monthly to the Eurasian Community Fund (ECF), according to the wage levels below: | ||||||||||||||||||||||
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The
prescribed amounts will be automatically deducted from the wages of
Eurasian employees. If employees wish to contribute different amounts or
opt out, they have to get the relevant forms from the Eurasian
Association. SHARE Programme Donations The CPF Board collects SHARE (Social Help and Assistance Raised by Employees) donations on behalf of the Community Chest, National Council of Social Service. Donations by the employees are voluntary and deducted from the employees' wages. | ||||||||||||||||||||||
12. TELEPHONE SERVICES | ||||
Enquiries on
Employer Services | ||||
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Enquiries on Agency
Services Foreign Worker Levy
(FWL) Registry of Companies
and Business (RCB) Skills Development
Levy (SDL) Mosque Building and
Mendaki Fund (MBMF) Singapore Indian
Development Association (SINDA) Chinese Development
Assistance Council (CDAC) Eurasian Community
Fund (ECF) SHARE
Programme National Council for
Social Services (NCSS) Centre | ||||
ALLOWANCES AND CPF (wef 1
November 2000) The table below is a general guide as to when CPF is payable on allowances. | ||
Type of Payment |
Description |
CPF Payable |
Anniversary Cash Award |
Payment
to employees on company’s anniversary |
Yes |
Annual
Wage Supplement/ Bonus year |
Payment
to employees at the end of the financial |
Yes |
Attendance Allowance |
Payment
for good work and attendance |
Yes
|
Commission |
Payment
to employees based on percentage of sales achieved |
Yes
|
Cost of
Living Allowance |
Payment
as part of employee’s wages |
Yes
|
Dirt Allowance | Payment for performing field duties |
Yes |
Education
Allowance |
Contractual payment for education of employee’s children
|
Yes |
Payment
made under employee’s self-improvement programme |
No | |
Entertainment Allowance |
Reimbursement for entertaining company’s clients |
No |
Extra
Duty Allowance |
Payment
made for extra work done; e.g. night duty, overtime, public holiday,
acting allowance etc. |
Yes |
Festival
Allowance |
Cash gift
(e.g. hongbao) given to employees during festive season |
Yes |
Finders
Introduction Fees |
Payment
to employees for introducing workers to company |
No |
Gratuity |
Payment
to employees for good service while still in employment |
Yes
|
Payment
to employees upon termination of employment No i. e. compensation in
nature |
No | |
Grooming
Allowance |
Payment
to employees for enhancement of appearance |
Yes
|
Hair Cut Allowance | Payment to employees for enhancement of appearance |
Yes |
Holiday
Allowance |
Fixed
payment to employees for vacation |
Yes |
Variable
sum given as reimbursement for holiday expenses incurred by employees
|
No | |
Housing
Allowance |
Payment
to employees as housing rent |
Yes
|
Forms
part of the employer's expenditure and paid directly to third party e. g.
landlord |
No
| |
Incentive
Allowance |
Cash
payment incentive |
Yes |
Incentive
in kind e. g. token gifts |
No | |
Laundry
Allowance |
Reimbursement for laundry expenses to uniformed employees
|
No |
Leave
Pay |
Payment
in lieu of leave |
Yes |
Long
Service Award |
Cash
award for long service |
Yes |
Payment
to employees with at least 5 years' service and at subsequent intervals of
5 years' service. The amount should of each award should not exceed the
employee's wages for one month. |
No | |
Maternity
Allowance |
Payment
to female employees during confinement and in addition to monthly salaries
|
Yes |
Maternity
Subsidy |
Reimbursement paid under company's maternity expenses scheme
|
No |
Meal
Allowance |
Monthly
lump sum payment to employees |
Yes |
Reimbursement for staying beyond working hours, i.e. overtime
|
No | |
Handphone
& Pager Allowance |
Fixed
payment or reimbursement given to employees |
Yes |
Forms
part of the employer's expenditure & paid directly to third party e.g.
service provider |
No | |
Personal
Clothing Allowance |
Payment
to employees to enhance appearance |
Yes |
Probation
Period Pay |
Wages for
employees on probation |
Yes |
Productivity Award |
Cash
award for staff productivity |
Yes |
Award in
kind e.g. token gifts |
No | |
Sales
Performance Award |
Payment
for attaining sales target |
Yes |
Service
Charge |
Collection by hotels/restaurants and distributed as part of wages
to employees |
Yes |
Staff
Welfare Benefits |
Gifts in
kind to employees on their marriage or birth of their children
|
No |
Stand-by
Allowance |
Payment
for stand-by duties |
Yes |
Termination Benefits |
Retirement gratuity, retrenchment pay, ex-gratia payment, salary in
lieu of notice, severance pay, compensation for loss of
employment |
No |
Payment
of temporary lay-off benefits |
Yes | |
Tips
|
Cash
collected from customers to augment wages of hotel and restaurant
employees |
Yes |
Transport
Allowance |
Payment
to subsidise employees’ transport expenses |
Yes |
Reimbursement for travel in the line of official duty
|
No | |
Reimbursement for travel between home and workplace beyond normal
working hours e.g. rest days and public holidays |
No | |
Reimbursement for travel from home/office to the place of
assignment (not the normal place of work) |
No | |
Reimbursement for actual transport expenses where the employer is
obliged to provide transport for employees and where the transport is not
available |
No | |
Workmen's
Compensation |
Payment
awarded for injuries under the Workmen’s Compensation Act |
No |
CONTRIBUTION RATES FOR EMPLOYEES WHO ARE SINGAPORE CITIZENS (FROM 1 JANUARY 2001) | ||
AGE OF EMPLOYEE | ||||||||
55 yrs and below | Above 55-60 yrs | Above 60-65 yrs | Above 65 yrs | |||||
Employee's total wages | Contributions payable by the employer for the calendar month | Amount recoverable from the employee's wages for the calendar month | ||||||
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
Not more than $50 | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
More than $50 but less than or equal to $200 | 16% of the employee's total wages for the month | Nil | 6% | Nil | 3.5% | Nil | 3.5% | Nil |
More than $200 but less than or equal to $363 | a. 21% of the employee's total wages for the month; and | a. 5% of the employee's total wages for the month; and | 6% | Nil | 3.5% | Nil | 3.5% | Nil |
b. 1/3 of the difference between the employee's total wages for the month and $200. | b. 1/3 of the difference between the employee's total wages for the month and $200. | 1/4 | 1/4 | 1/6 | 1/6 | 1/9 | 1/9 | |
Over $363 | a. 36% of the employee's ordinary wages for the month up to $2,160; and | a. 20% of the employee's ordinary wages for the month up to $1,200; and | 18.5% max $1,110 | 12.5% max $750 | 11% max $660 | 7.5% max $450 | 8.5% max $510 | 5% max $300 |
b. 36% of the total additional wages payable to the employee in the month | b. 20% of the total additional wages payable to the employee in the month | 18.5% | 12.5% | 11% | 7.5% | 8.5% | 5% |
NB : The rates in columns 2, 4, 6, and 8 represent the amounts payable by the employer in the first instance. The rates in columns 3, 5, 7, and 9, represent the amounts that are recoverable from the employee’s wages. |
CPF Contribution Rates For Permanent Residents (PRs) During 1st Year of Obtaining PR Status (FROM 1 JANUARY 2001) | ||
AGE OF
EMPLOYEE | ||||||||
55 yrs and below | Above 55-60 yrs | Above 60-65 yrs | Above 65 yrs | |||||
Total amount of the employee's wages for the calendar month | Contributions payable by the employer for the calendar month | Amount recoverable from the employee for the calendar month | ||||||
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
Not exceeding $50 | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Exceeding $50 but not exceeding $200 | 4% of the employee's total wages for the month | Nil | 4% | Nil | 3.5% | Nil | 3.5% | Nil |
Exceeding $200 but not exceeding $363 | a. 6% of the employee's total wages for the month; and | a. 2% of the employee's total wages for the month; and | 4% | 0% | 3.5% | 0% | 3.5% | 0% |
b. 1/15 of the difference between the employee's total wages for the month and $200 | b. 1/15 of the difference between the employee's total wages for the month and $200 | 1/9 | 1/9 | 1/9 | 1/9 | 1/9 | 1/9 | |
Exceeding $363 | a. 9% of the employee's ordinary wages for the month up to $540; and | a. 5% of the employee's ordinary wages for the month up to $300; and | 9% max $480 | 5% max $300 | 8.5% max $510 | 5% max $300 | 8.5% max $510 | 5% max $300 |
b. 9% of the total additional wages payable to the employee in the month | b. 5% of the total additional wages payable to the employee in the month | 9% | 5% | 8.5% | 5% | 8.5% | 5% |
1. | The rate of contributions payable by the employer is shown in columns 2, 4, 6, and 8 while columns 3, 5, 7, and 9 indicate the contributions recoverable from the employee. | |
2. | For employees in the above 55 to 60, above 60 to 65 and above 65 age groups, simply replace the figure underlined in columns 2 and 3 with the corresponding figures in columns 4 to 9. |
CPF Contribution Rates For Permanent Residents (PRs) During 2nd Year of Obtaining PR Status (FROM 1 JANUARY 2001) | ||
AGE OF
EMPLOYEE | ||||||||
55 yrs and below | Above 55-60 yrs | Above 60-65 yrs | Above 65 yrs | |||||
Total amount of the employee's wages for the calendar month | Contributions payable by the employer for the calendar month | Amount recoverable from the employee for the calendar month | ||||||
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
Not exceeding $50 | Nil | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Exceeding $50 but not exceeding $200 | 12% of the employee's total wages for the month | Nil | 6% | Nil | 3.5% | Nil | 3.5% | Nil |
Exceeding $200 but not exceeding $363 | a. 18% of the employee's total wages for the month; and | a. 6% of the employee's total wages for the month; and | 6% | 0% | 3.5% | 0% | 3.5% | 0% |
b. 1/5 of the difference between the employee's total wages for the month and $200 | b. 1/5 of the difference between the employee's total wages for the month and $200 | 1/4 | 1/4 | 1/6 | 1/6 | 1/9 | 1/9 | |
Exceeding $363 | a. 27% of the employee's ordinary wages for the month up to $1,620; and | a. 15% of the employee's ordinary wages for the month up to $900; and | 18.5% max $1,110 | 12.5% max $750 | 11% max $660 | 7.5% max $450 | 8.5% max $510 | 5% max $300 |
b. 27% of the total additional wages payable to the employee in the month | b. 15% of the total additional wages payable to the employee in the month | 18.5% | 12.5% | 11% | 7.5% | 8.5% | 5% |
1. | The rate of contributions payable by the employer is shown in columns 2, 4, 6, and 8 while columns 3, 5, 7, and 9 indicate the contributions recoverable from the employee. | |
2. | For employees in the age groups above 55 to 60, above 60 to 65 and above 65, replace the figure underlined in columns 2 and 3 with the corresponding figures in columns 4 to 9. | |
3. | The contribution rates for PRs during 3rd year of PR status is the same as the rates for private sector employees. | |
4. | The second and third year rates are payable on the anniversary of the employee's conversion to a Permanent Resident. E.g. if the employee became a Singapore Permanent Resident on 15 May 2000, the second and third year rates will apply from 1 June 2001 and 1 June 2002 respectively. . |
Calculating Additional Wage (AW) Ceiling | ||
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The table below shows how CPF contributions on the Additional Wages are calculated for an employee whose Additional Wage Ceiling is $40,000: | |||||||||||||||||||||||||||||||||||||
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(2) |
For an employee whose Total Wages (TW) exceed $100,000 and Total Ordinary Wages (TOW) are more than $72,000, the Additional Wage Ceiling is 40% of Total Ordinary Wages (TOW). Important Note : The 40% here is a standard formula, and not the CPF contribution rate. | ||||||||||||||||||||||||||||||||||||
Example: | |||||||||||||||||||||||||||||||||||||
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The table below shows how CPF contributions on the Additional Wages are calculated for an employee whose Additional Wage Ceiling is $32,000: | |||||||||||||||||||||||||||||||||||||
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*Assumption: | Employee is below 55 years old and CPF contribution rate is 36%. |
** Note : | The amount of Additional Wage on which CPF is payable for the month of July is calculated as follows: $32,000 (Additional Wage Ceiling for the year) Š $20,000 (AW for Feb) - $12,000 |
Foreign Worker Levy Rates (from 1 December 2000) | ||
Type of foreign worker | Levy per month for each worker | Levy for part-month employment | ||||||||||||||||
Domestic | $345 | $12 per day, up to $345 a month | ||||||||||||||||
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Updated on 6 February 2001 |
© Copyright 1997-2000. Central Provident Fund Board |