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Calculating Other CPF Contributions

In addition to CPF contributions, the CPF board also collects Mosque Building and Mendaki Fund contributions (MBMF), Skills Development Levy (SDL), and Foreign Workers Levy (FWL) contributions on behalf of the government and SHARE donations for the Community Chest of Singapore. There are also collection schemes for community assistance programmes such as SINDA, CDAC and the Eurasian Association which are administered by the CPF Board.

This topic discusses how to:

Calculating MBMF Contributions

MBMF contributions must be paid by all Muslim employees each month. The MBMF deduction is determined by the employees wages for the month and uses formula CPF FM MBMF CALC. Formula CPF FM MBMF CALC calculates MBMF using bracket C PF BR MBMF. Since this is a monthly contribution, the formula looks up the bracket and subtracts any month-to-date amount.

The employees religion is returned by the personal data array CPF AR PERS DATA. The generation control CPF GC MBMF uses formula CPF FM MBMF GC to determine whether the employee is a Muslim. If the employee's religion is Muslim, regardless of citizenship status, the deduction is made.

Calculating SINDA Contributions

SINDA contributions must be paid by all Indian employees (except foreign workers) each month. The SINDA deduction is determined by the employees wages for the month and uses formula CPF FM SINDA CALC. Formula CPF FM SINDA CALC calculates SINDA using bracket CPF BR SINDA. Since this is a monthly contribution, the formula looks up the bracket and subtracts any month-to-date amount.

The employees ethnic category and citizenship status are returned from the personal data array CPF AR PERS DATA. The generation control CPF GC SINDA (using formula CPF FM SINDA GC) uses them to determine whether SINDA is applicable or not. If the employee's ethnic category is Indian, and their citizenship status is notforeign worker, the deduction is made.

Calculating FWL Contributions

FWL is a levy paid by foreign workers. While they are not required to pay CPF contributions for foreign workers, employers are liable to pay monthly levies to hire employees who hold Work Permits or S Passes.

Foreign workers on the Foreign Worker Levy Scheme who are granted Singapore Permanent Resident status are placed on the CPF scheme from the date Permanent Resident status is granted.

The generation control CPF GC FWL uses formula CPF FM FWL GC, to determine if the employee is either a foreign worker, an S Pass holder, or a foreign worker who has become a permanent resident (PR) during the current month. It is set to Include the employee if the formula is true.

If variable CPF VR CITIZENSHIP (which stores the citizenship status of the payee) is 6 — foreign worker, or 9 — S Pass holder and the S Pass holding date is in the current month (based on month from period end date), the levy is paid.

Note: If CPF VR CITIZENSHIP is 9— S Pass holder, no FWL will be paid .

The variable CPF VR FWL ST DT is used to enter the start date of the FWL. The Date Value must be entered, as it is the exact begin date of calculation of the FWL. If it is not entered, the hire date is used instead. You can override it at the payee level. When a foreign worker is hired, FWL does not necessarily start from the hire date. It may actually be payable before that - either from the time the work permit is issued, or when the employee enters the country.

The variable CPF VR FWL TO DATE is used to override the end date of FWL. The Date Value must be entered, as it is the exact end date of calculation FWL. For CPF VR CITIZENSHIP is 6— foreign worker, worker type is S Pass holder (percentage), the variable CPF VR SP DATE is used to override the start date of FWL and Date Value must be entered as above.

The variable CPF VR FWL TO DATE is used to calculate the period end date while calculating FWL in the current month. You can override this at the payee level. Even though a foreign worker may be terminated, FWL is payable as long as the work permit is not cancelled. It is payable until the cancellation date.

Calculating the FWL Amount

The formula CPF FM FWL CALC calculates the amount of FWL to be paid for an employee in the pay period. The amount of FWL to be paid depends on the worker type of the payee. The rate applicable to each worker type is held in bracket CPF BR FWL RATES. For a full month, the amount is simply the return values of the CPF BR FWL RATES from bracket CPF BR FWL RATES for each CPF VR WORKER TYPE. For a partial month, it is calculated using the values of CPF VR FWL DAILY *FWL applicable calendar day.

Bracket CPF BR FWL RATES returns the daily and monthly FWL rates based on the payee's worker type (variable CPF VR WORKER TYPE). FWL will normally start from the hire date, but the FWL start date variable CPF VR FWL ST DT enables you to override that in case you want it to start earlier. If it started in the previous month, but wasn't calculated (because they were too late), last months FWL is calculated first. The FWL MTD accumulator uses a specified date and is maintained for 1 month so that you can check last months balance.

Calculating SHARE Programme Donations

The CPF Board collects SHARE Programme donations on behalf of the Community Chest, National Council of Social Service. SHARE contributions are voluntary and deducted from the employees' wages. The amount of any contribution is entirely at the employee's discretion and is entered at the payee level. The deduction subtracts from the SGP NET net pay accumulator.

Calculating SDL Contributions

SDL is a levy on the employer charged for all employees. The rate of contribution is .25% of the employee's earnings, or at least 2 SGD. The SDL deduction uses formula CPF FM SDL CALC. The limit (4500), rate (.25%) and minimum amount (2) are stored in the following PeopleSoft maintained variables:

  • CPF VR SDL LIMIT — holds the wage limit for SDL contribution as 4500 SGD for the calculation of SDL, as of October 208.

  • CPF VR SDL PERCENT — holds the percentage as .25% for the calculation of SDL.

  • CPF VR SDL — stores the SDL amount in the formula CPF FM SDL CALC.

  • CPF VR SDL MIN — holds the minimum contribution for SDL as 2.00 SGD for the calculation of SDL.

If the accumulator SGP GROSS (gross pay amount) is less than or the same as the variable CPF VR SDL LIMIT (wage limit for SDL contribution as 4500 SGD), the sum of SGP GROSS × variable CPF VR SDL PERCENT (.25%) is stored in variable CPF VR SDL, to then be used in formula CPF FM SDL CALC. Variable CPF VR SDL is divided by 100. If the result is less than variable CPF VR SDL MIN (2.00 SGD), the formula does not resolve.

Calculating CDAC Contributions

Contributions to CDAC are made by all working Chinese Singaporeans and Permanent Residents. The deduction CDAC uses formula CPF FM CDAC CALC and generation control CPF GC CDAC.

The generation control CPF GC CDAC uses formula CPF FM CDAC GC to determine if the employee is either a foreign worker, or was a foreign worker and became a permanent resident during the current month. It is set to Include the employee if the formula is true.

The employees ethnic category and citizenship status are returned from the personal data array CPF AR PERS DATA. The generation control CPF GC CDAC (using formula CPF FM CDAC GC) uses them to determine whether CDAC is applicable or not. If the employee's ethnic category is Chinese, and their citizenship status iscitizen orpermanent resident, the deduction is made.

Calculating ECF Contributions

All working Eurasian Singapore citizens and permanent residents may contribute to the Eurasian Community Fund. Contributions vary based on the monthly income of the employee. Deduction ECF uses formula CPF FM ECF CALC and generation control CPF GC ECF.

ECF contributions are mandatory for all Eurasian employees (except foreign workers). The employees ethnic category and citizenship status are returned from the personal data array CPF AR PERS DATA. The generation control CPF GC ECF uses them to determine whether ECF is applicable. If the employee's ethnic category is Eurasian, and their citizenship status iscitizen orpermanent resident, the deduction is made.

Formula CPF FM ECF CALC ECF uses bracket CPF BR ECF. Since this is a monthly contribution, the formula looks up the bracket and subtracts any MTD amount.