PeopleSoft Enterprise Global Payroll for Singapore 9.1 PeopleBook

Setting Up and Managing Employee and Employer CPF Details

Common Elements Used in This Chapter

CPF	The Central Provident Fund (CPF) is a compulsory savings scheme for employees. It was constituted in 1955 with the objective of providing financial security for workers in their retirement. Over the years, schemes have been introduced to allow CPF savings to be used for home ownership, life insurance, medical insurance, hospitalization expenses, approved investments and education at local approved institutions. The Central Provident Fund is administered by the CPF Board and contributions to the fund are made by both employers and employees based on a percentage of the employee's wages. If a work permit holder on the FWL Scheme is granted Singapore Permanent Resident (SPR)0 status, he will be placed on the CPF scheme. This will take effect from the day he is granted SPR status.
FWL	The Foreign Worker Levy (FWL). The government uses a combination of quota restrictions and the imposition of a foreign worker levy as methods to control the foreign worker population. A levy is imposed on every employer in respect of each employee who is a non-resident work permit holder. The levy is not imposed on foreign workers who are permanent residents— they come under the CPF scheme instead. There is no employee contribution to FWL. The FWL and CPF schemes are mutually exclusive. An employer who pays the levy for foreign workers is not required to make CPF contributions for those workers. A work permit holder who is subsequently granted permanent resident status will come under the CPF scheme instead. However, the employer is required to pay the Skills Development Levy (SDL) for the workers at the prevailing rate and wage ceiling.
MBMF	The Mosque Building and Mendaki Fund. MBMF contributions are collected by the Central Provident Fund Board on behalf of Majlis Ugama Islam Singapura (MUIS) at the same time that contributions are collected for the Central Provident Fund. Contributions are mandatory for Muslim employees and the contribution rates depend on their monthly wages.
SINDA	The Singapore Indian Development Association (SINDA). From April 1, 1992, employees belonging to the Indian community can make monthly contributions to their self-help body, SINDA, through salary deductions. The Central Provident Fund will collect the tax-deductible monthly contribution on behalf of SINDA. Indians who are not CPF members can make contributions through GIRO (electronic payments system), in cash or by cheque. Contributions are mandatory for all working Indians at a prescribed minimum amount according to their wages.
CDAC	The Chinese Development Assistance Council (CDAC). A scheme was put into operation on September 1, 1992 by the Chinese Development Assistance Council (CDAC) for employees to contribute towards an endowment fund. Similar to the schemes for SINDA and MBMF, contributions are collected by the CPF Board on behalf of CDAC. Contributions are made by working Chinese adults and the amount contributed depends on their monthly wages. The default is that contributions are taken and the employee elects not to contribute if they so desire.
ECF	The Eurasian Community Fund (ECF). Contributions to a community fund for the Eurasian Association commenced on April 1, 1995. Contributions are collected by the CPF Board. Employees can choose to contribute to the fund — contributions vary based on the monthly income of the employee.
SHARE	The Social Help and Assistance Raised by Employees (SHARE). An employee can voluntarily arrange for a monthly donation to SHARE to be deducted from their wages. The SHARE Programme is a campaign of the Community Chest of Singapore and is used to raise money which is given entirely to fund voluntary welfare organizations to provide services to various charities. The employer will forward the donations to the Central Provident Fund Board which collects the donations on behalf of the Community Chest. Donations should be sent at the same time as Central Provident Fund contributions.
SDL	The Skills Development Levy (SDL). The Skills Development Fund aims to promote, develop and upgrade skills and expertise of employees, and to retrain retrenched persons. The Skills Development levy is collected by the Central Provident Fund Board on behalf of the Singapore Productivity and Standards Board. Employers should make payment of the levy at the same time as they pay contributions to the Central Provident Fund. The Skills Development levy is payable by employers based on the number of employees and their respective remuneration. The Skills Development levy collected is channeled into the Skills Development Fund, which provides for training.
Ordinary Wages	Ordinary Wages are wages due or granted wholly and exclusively in respect of an employee's employment in that month and payable before the due date for payment of CPF contributions for that month. This includes allowances (such as food allowance or overtime payment).
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. Employees and their employers must make CPF contributions based on additional wages earned by the employee. Such contributions are subject to certain capping rules. Annual wage supplement, annual bonuses and other such payments that are paid at intervals of more than a month are regarded as additional wages for the month in which they are paid and no attempt should be made to apportion such payments retrospectively over a prior period.
NPVP	Non-Pensionable Variable Payment, which is payable monthly.
NPC	Non-Pensionable Component of the revised salary.

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, adjustment 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 ADJ ER Employer CPF Adjustment	Year-End adjustment to employer's share of Additional Wages contributions. Amount = CPF VR EMPLR ADJ (Statutory)
CPF ADJ EE Payee CPF Adjustment	Year-End adjustment to payee's share of Additional Wages contributions. Amount = CPF VR PAYEE ADJ (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 ADJ ER

Employer CPF Adjustment

Year-End adjustment to employer's share of Additional Wages contributions.

Amount = CPF VR EMPLR ADJ

(Statutory)

CPF ADJ EE

Payee CPF Adjustment

Year-End adjustment to payee's share of Additional Wages contributions.

Amount = CPF VR PAYEE ADJ

(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 employees 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)
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)

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.

Setting Up and Managing Employee and Employer CPF Details

Setting Up and Managing Employee and Employer CPF Details

Using CPF Calculation Fundamentals

This section discusses how to:

Manage CPF earnings.
Control eligibility for CPF.
Manage CPF rates.
Work with monthly calculations.
Manage currency for CPF calculations.
Manage retropay processing for CPF.

Managing CPF Earnings

All payments to employees are classified as either ordinary wages, additional wages or NP (non-pensionable) wages (for the public sector) and the following segment accumulators are provided for these:

CPF ORD WAGES SEG — Accumulates the ordinary wages in the segment.
CPF ADD WAGES SEG — Accumulates the additional wages in the segment.
CPF NP WAGES SEG — Accumulates the non-pensionable wages in the segment.

All earnings for Singapore add to either the ordinary wages or the additional wages accumulator. Non-pensionable wages (NPVP and NPC) are a sub-set of ordinary wages and the NVP/NPC accumulators also add to the ordinary wages earnings elements and to the ordinary wages and NP wages accumulators.

As the NP (non-pensionable) wages is really a sub-set of ordinary wages, the element member list for the ordinary wages accumulator includes the NP wages accumulator.

All accumulators are keyed by EmplID, with user keys of variable CPF VR EMPLR REF (employer CPF Reference Number) and variable IRS VR BAL GRP and you should ensure that all earnings add to the appropriate accumulators. The month-to-date accumulators are based on calendar years—The financial year for Singapore is the same as the calendar year, so calendar accumulators are used. You can use the fiscal accumulators if required for your financial year.

Year-to-date accumulators are also used for ordinary wages and additional wages for use in calculating additional CPF limits. You can access these accumulators for both the current year and the previous year, so they must be maintained for 12 months after their end date, and based on a specified date. The specified date is a variable CPF VR ACC REF DT (CPF accumulator reference date) which must be initialized to the period end date. The variable stores the reference date by the month-to-date and year-to-date ordinary wages and month-to-date and year-to-date additional wages accumulators.

Controlling Eligibility for CPF and Other Contributions

The decision as to whether or not employees should be enrolled in specific benefit plans for CPF is based on the employee's citizenship status, ethnic group and religion. Generation control elements in Global Payroll automatically determine the deductions applicable to each employee. In all cases, there are also rare instances where employees can apply to the various bodies to either contribute at a different rate or stop altogether. These cases are handled by manual payee deduction overrides.

The table below indicates when the various CPF deductions are calculated using generation control elements.

Deduction	Generation Control	Criteria
CPF (Normal Contributions)	CPF GC NORMAL	All employees except those with a citizenship status of foreign worker.
CPF (Year-end Adjustment)	CPF GC ADD ADJUST	All employees with additional wages during the year, except those with a citizenship status of foreign worker. Only to be calculated in December, or when an employee terminates.
CPF (Voluntary Contributions)	(No generation control) Eligibility by individual assignments.	Manually controlled by payee deduction assignment only.
MBMF	CPF GC MBMF	All employees with a religion of Muslim, except those with a citizenship status of foreign worker.
SINDA	CPF GC SINDA	All employees with an ethnic category of Indian, except those with a citizenship status of foreign worker.
CDAC	CPF GC CDAC	All employees where the ethnic category is Chinese, except those with a citizenship status of foreign worker.
ECF	CPF GC ECF	All employees where the ethnic category is Eurasian, except those with a citizenship status of foreign worker.
SDL	Uses formula CPF FM SDL CALC. The limit (2000), rate (1%) and minimum amount (2) are stored in the PeopleSoft maintained variables.	Calculated for all employees. (Those earning more than 2000 SGD will have zero calculated.)
FWL	CPF GC FWL	All employees with a citizenship status of foreign worker, or change from foreign worker to permanent resident during the month.
SHARE	(No generation control) Eligibility by individual assignments.	Manually controlled by payee deduction assignment only.

Managing CPF Rates

The CPF contribution rates required for CPF calculations are specified by CPF legislation and are PeopleSoft maintained. The data is accessed via the CPF AR RATES array, using formula CPF FM RATE LOOKUP, which retrieves the appropriate calculation rates (appropriate row in the array) for each employee.

To find the correct row in the CPF AR RATES array for the current employee (payee), formula CPF FM RATE LOOKUP determines the sector, the gradual CPF status, the employee's age and total wages for the month. These are determined using the following elements, as referenced in the CPF FM RATE LOOKUP formula:

Formula CPF FM GRADUAL YR returns a value indicating whether gradual CPF rates should be applied for the payee. The formula returns the number of years in which the payee becomes the permanent resident (PR). The value is used to indicate whether gradual CPF rates should be applied for the payee. Variable CPF VR PR GRADUAL enables you to select which set of rates will be used for Permanent Residents. If set to blank, Full CPF rates will be used for PR's in the first 2 years. If set to 'P', Full Employer CPF and Gradual Employee CPF rates will be used for the first 2 years. The formula that determines the number of years of PR (CPF FM GRADUAL YR) takes this variable into consideration. You can set/override the value of the variable on the Pay Entity, Pay Group and/or Payee Element Overrides pages.
If the employee status is not permanent resident, the formula doesn't resolve. However, if the employee is a permanent resident, the formula finds the number of complete years, using duration CPF DR PAYEE AGE, between the first day of the month following the permanent residency date and the first of the current month (based on the month from the period end date). While CPF originally starts from the actual permanent residency date, the second and third year rates are not accessed until the beginning of the month following the anniversary.
Duration CPF DR PAYEE AGE retrieves the correct CPF rates for a payee, their age as at the first day of the current month is needed. (From birth date to first day of current month, using the month from the period end date.

Note. You can override the formula at payee level. Employees may elect to pay the full CPF from the beginning and not have gradual CPF applied. To do this, you can enter an override to this formula, by setting the value to 'F', on the Payee Supporting Element Overrides page.

Data is retrieved from the database every time the CPF AR RATES is resolved. This is useful for retrospective Pay Rate Changes as the new rates (as of the new calendar) will have to be used. For example, if there is a change in CPF rates (October 1, 2007), and there is a retrospective Pay Rate Change (effective 1 September 2007), the CPF calculation for October pay calendar must use the new rates effective 1 October 2007.

Working with Monthly CPF Calculations

All of the CPF contribution rates are specified as monthly amounts and must be reported and paid to the CPF Board monthly, regardless of the pay frequency. To accommodate this, all of the calculations are based on month-to-date (MTD) amounts. In each case, they are calculated using the employees MTD wages and at the end, any existing MTD contributions already calculated are subtracted. Our rules are designed to have the deductions calculated in every pay. Wages are attributed only to a single month (determined by the period end date) and are not pro rated. For example, if you want to have some deductions calculated in the last pay of the month, you will need to create your own generation control elements to do that.

Managing Currency for CPF Calculations

CPF is only calculated on payments that are in Singapore Dollars (SGD).

A conditional formula, CPF FM CUR SGD is attached to the CPF section in the process list to prevent it from being processed for any currency other than Singapore dollars. This means that CPF reports also only report on Singapore Dollar payments. Any payments made in other currencies are ignored by the reports.

Managing Retropay Processing for CPF

CPF is calculated for ordinary earnings based on the period in which it was earned. However, for additional earnings, CPF is calculated based on the period in which it is paid. Since the retro method for Singapore is Forwarding, the ordinary CPF deductions are also specified as Forwarded in the Retro Process definition. This means that where retro is concerned, ordinary CPF is re-calculated for the original pay period, and the difference forwarded to the current pay.

To ensure CPF is not also calculated on the retro earnings in the current period, all ordinary earnings are forwarded to earning codes that are not included in the CPF ordinary wages accumulator. For additional earnings, the CPF deductions from the original period are not forwarded into the current period, so the additional CPF deductions are not included in the retro process definition.

Additional earnings elements are included in the retro process definition, and do not need to be forwarded to a different element. Other deductions such as MBMF, SINDA and CDAC are all forwarded and calculated based on when they were earned.

Defining Earnings

Setting Up and Managing Employee and Employer CPF Details

Use the Employer CPF Reference SGP (GPSG_EMPLR_CPF_REF) component to set up and manage employee and employer CPF details.

Before you can administer contributions for employees or report for CPF or any of the other collections it is necessary to determine and record some unique identifiers for the employer and employee.

This section discusses how to:

Set up and track employer CPF reference numbers.
Track employer CPF sector details.
Track employee CPF details.

Page Used to Set up and Manage Employee and Employer CPF Details

Page Name	Definition Name	Navigation	Usage
CPF Emplr Ref/ CPF Sub No SGP	GPSG_EMPLR_CPF_REF	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, CPF Emplr Ref/ CPF Sub No SGP, CPF Emplr Ref/ CPF Sub No SGP	Use this page to maintain employer CPF reference numbers.

Setting up and Tracking Employer CPF Reference Numbers

Access the CPF Emplr Ref/ CPF Sub No SGP page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Employer CPF Reference SGP, CPF Emplr Ref/ CPF Sub No SGP).

CPF Employer Ref Num (central provident fund employer reference number)

The employer's CPF reference number is a unique ID assigned to each employer by the CPF Board. Reporting to the CPF Board is always processed separately for each employer reference number. So it is important for all the amounts and balances related to CPF to be kept separately for each one. The employer's CPF reference number is therefore recorded in the variable CPF VR EMPLR REF which is used as a user key on all CPF related accumulators.

You enter the number on the Singapore Pay Groups SGP. An array is used to load it into the variable.

Tracking Employer CPF Sector Details

To add some more flexibility to the way pay entities are structured, you can define the employer data either at the pay group level, or at a higher level. We also allow for the situation where a single CPF employer is implemented in Global Payroll as a number of pay entities.

The employers sector is also recorded using a Global Payroll variable. The variable CPF VR SECTOR stores the sector which is used to determine the set of CPF rates applicable for an employee. You can override the sector variable at pay entity, pay group or payee level.

You can enter the following values:

1 — Civil Service – Pensionable.
2 — Civil Service – Other.
3 — Private Sector – (the default value).

The variable CPF VR UNIT NUM stores the 3-digit unit number used in reporting to the CPF Board by the MOF/MID. It is not used by other customers. You can override it at pay entity, pay group or payee level.

Tracking Employee CPF Details

Two views and arrays are delivered to bring all of the CPF information required for processing—including the citizenship status, worker type, permanent residence date, age, ethnic group and religion—using the arrays to make it available to the Global Payroll CPF rules.

The GPSG_CPF_PERS_VW view enables the employee (personal) data to be extracted from several different tables using a single array — CPF AR PERS DATA. The array is included at the beginning of the DEDUCTIONS – CPF (CPF section) so that the values retrieved are available to all the deductions and related supporting elements. The array is keyed by employee. Only one row is ever retrieved, and an error formula is included to provide a message if no record is found.

A national ID type is delivered to hold the employee's CPF account number (in addition to the national ID types of NRIC and permanent residency (PR) number. When reporting employees CPF accounts, the CPF account number national ID is used, if it exists. If not, it uses the NRIC and if that doesn't exist either, the permanent residency number.

The GPSG_CPF_ETH_VW view enables the employee's ethnic group and religion data to be extracted from several different tables using a single array—CPF AR ETHN/RELIG. The array retrieves the payee's ethnic group and religion to determine if they must contribute to CDAC, MBMF, ECF and SINDA and is included at the beginning of the DEDUCTIONS – CPF (CPF section) so that the values retrieved are available to all the deductions and related supporting elements. The array is keyed by employee.

Note. Ethnic group and religion are loaded using a separate array—CPF AR ETHN/RELIG—as they are not necessarily needed for foreign workers.

The GPSG_CPF_PERS_VW view extracts the following fields:

Field	Variable	Attribute
CITIZENSHIP_STATUS	CPF VR CITIZENSHIP	Employee's citizenship status from CITIZENSHIP table. Selected only where DEPENDENT_ID is blank (the employees record), and COUNTRY = 'SGP'.
WORKER TYPE_SGP	CPF VR WORKER TYPE	Employee's worker type from the same CITIZENSHIP record as Citizenship Status.
PERM_STATUS_DT_SGP	CPF VR PERM DATE	Employee's permanent status date — also from the same CITIZENSHIP record as Citizenship Status.

The GPSG_CPF_ETH_VW view extracts the following fields:

Field	Variable	Attribute
RELIGION_CD	CPF VR RELIGION	Employee's religion from DIVERS_RELIGION table.
ETHNIC_CATEGORY	CPF VR ETHNIC	Ethnic Group Code from the DIVERS_ETHNIC table. Ethnic Category from ETHNIC_GRP_TBL table.

The values for the religion and citizenship status fields are controlled by setup tables.

The employee type is stored in variable CPF VR EMPL TYPE. This is the employee type that is used in reporting to the CPF Board by the MOF/MID. You can override it at pay entity, pay group or payee level. The default value is blank.

Override values are:

'P' - pensionable.
'A' - bonus payment.
'N' - non-pens.
'C' - contract svcmen.
'S' - saver's plan.

See Also

Calculating CPF Contributions

Under the Central Provident Fund Act, all remuneration in money due or granted to an employee in respect of their employment, including overtime pay, allowances, cash awards, commission and bonuses, is treated as wages. CPF contributions are computed based on the employee's wages. The CPF contributions payable on an employee's wages depends on the type of wages—ordinary wages or additional wages.

The ordinary CPF contribution of employer and employee depends on the total wages of the employee, and the employee's age and the corresponding age group, and the contribution rates during the fiscal year.

This section discusses how to:

Calculate normal CPF contributions.
Calculate voluntary CPF contributions.
Calculate additional CPF contributions.

Calculating Normal CPF Contributions

CPF contributions must be paid for all employees other than foreign workers (and maybe a few odd exceptions, like employees working overseas or students). Contributions are made by employees and by employers. For reporting purposes, it is necessary to record the CPF paid on ordinary wages and additional wages separately. There are therefore four normal CPF deductions:

CPF ORD EE — Employee Ordinary CPF.
CPF ADD EE — Employee Additional CPF.
CPF ORD ER — Employer Ordinary CPF.
CPF ADD ER — Employer Additional CPF.

These CPF deductions apply to most of the workforce, so the deduction assignments are by eligibility group. A generation control CPF GC NORMAL which uses formula CPF FM NORMAL GC is attached to exclude foreign workers and to determine whether the payee is eligible for CPF contribution. (Only Singapore citizens and permanent resident are eligible). For the rare exceptions, you can override at the payee level.

Since the calculation of the four parts of the CPF contributions are related, a single pre-processing formula CPF FM CALCULATION, attached to all the CPF deductions, calculates the amounts. The formula is only required once, but is attached to all CPF deductions in case there are overrides.

CPF contributions must always be calculated and paid to the CPF Board monthly. To cater for pay frequencies other than monthly, the CPF calculation is calculated every period, based on month-to-date wages. CPF already calculated for previous periods in the month is then subtracted to give the current period contributions.

Working with The CPF FM CALCULATION Formula

The formula CPF FM CALCULATION calculates the normal CPF to be contributed by the employer as well as the employee (payee). The calculated amounts are stored in variables for use in the deduction amount fields.

The formula calculates the normal CPF using the following elements:

The array CPF AR RATES retrieves the appropriate rates for the employee. The total wages are needed first to find the right wage bracket in the look-up. The following variables are returned:

	Total CPF Calculation Variables		Payee CPF Calculation Variables
A	Percentage of Ordinary Wages	I	Percentage of Ordinary Wages
B	Percentage of NPVP & NPC	J	Percentage of NPVP & NPC
C	Limit on Ordinary CPF	K	Limit on Ordinary CPF
D	Wages Base Amount	L	Wages Base Amount
E	Numerator	M	Numerator
F	Denominator	N	Denominator
G	Percentage of Additional Wages	O	Percentage of Additional Wages
H	Wages Type	P

The formula makes use of various other formulae and GP elements. The Variable CPF VR SECTOR stores the sector in which the employee works. All CPF deduction calculations are based on the sector of the employee.

Calculating Voluntary CPF Contributions

Voluntary CPF deductions are set up the same way as the normal CPF deductions. They use the same pre-process formula, CPF FM CALCULATION. However, as eligibility will be by individual assignments, they have no generation control.

There are two voluntary CPF deductions:

CPF VOL ER — Employer Voluntary CPF.
CPF VOL EE — Employee Voluntary CPF.

Voluntary CPF can be used in two situations:

Paying normal CPF for foreign workers or others not normally liable for CPF. In this case, the amount calculated in the pre-process formula is used.
Paying extra CPF for employees already contributing the normal CPF. In this case, the amount is overridden on the deduction assignment rather than using the standard CPF amounts.

Note. If the Voluntary CPF is for an overseas posting, set the IRS VR OVERSEAS variable on the SOVR's page of the Deduction Assignment to 'Y' (or any non-blank value) to indicate an overseas posting. This is used on Inland Revenue reports.

Calculating Additional CPF Contributions

With the final pay for each year, the limit on additional CPF needs to be recalculated based on actual wages for the year. If the limit is higher than that of the previous year, extra CPF contributions may need to be made. If the limit is lower, some contributions may need to be reclaimed from the CPF Board. This reconciliation needs to be carried out in December for all employees who received additional wages during the year. It also needs to be done in the final pay for employees who are terminating.

Two deductions are used for the adjustment: One for the employer's share and one for the employee's (payee's) share.

CPF ADD ER — Employer Additional CPF.
CPF ADD EE — Employee Additional CPF.

The generation control CPF GC ADD ADJUST, using the formula CPF FM ADD ADJ GC, determines whether the payee is eligible for CPF adjustment.

Calculating the Additional CPF Adjustment Deduction

The generation control formula CPF FM ADD ADJ GC is used to calculate the additional CPF adjustment deduction when:

The month of the period end date is December, or
The segment end date is equal to the payee's termination date, and
Additional wages YTD accumulator > zero, and
Citizenship status is not '6' (foreign worker)

As with the normal CPF deductions, the pre-process formula performs the actual calculation for both the employer and payee CPF contributions. The amounts calculated are stored in variables, which will be used as the amounts. The CPF FM ADD ADJ GC formula determines whether the employee (payee) is eligible for CPF adjustment using the following elements:

The new limit is calculated based on current earnings. Both the old limit and the new limit variables default to 999,999,999,999 - (no limit).
The old limit is calculated based on last year's earnings.
If additional wages for the current year exceed the new limit and the new limit is less than the old limit, the employer can claim a refund from the CPF Board. The message Additional CPF Refund due informs you of this.
If their current year additional wages exceeded the old limit and the old limit was less than the new limit, additional CPF needs to be calculated. The historical rule CPF HR ADD ADJUST, using formula CPF FM ADD ADJ SEG calculates the adjustments (total CPF and payee CPF) for the year.

Calculating CPF Adjustments

If their current year additional wages exceeded the old limit and the old limit was less than the new limit, additional CPF needs to be calculated. The historical rule CPF HR ADD ADJUST, using formula CPF FM ADD ADJ SEG calculates the adjustments (total CPF and payee CPF) for the year as follows:

The processing period should be going back from the end date of the previous month, to 01/01 (1st January) of the current year, based on period end date. (Generally, it will start from 30/11, that is, 30th November, but for terminating employees, it will be a different month.)
The historical rule returns the following fields for use in the calculation — CPF ADD WAGES YTD (additional wages year-to-date accumulator), CPF ADD WAGES SEG (additional wages segment accumulator), CPF VR RT PCT ADD (employer percent variable), CPF VR RT RPCT ADD, (employee percent variable).
Processing of the historical rule stops when CPF ADD WAGES YTD are less than or equal to the old limit.
The formula CPF FM ADD ADJ SEG executed for each segment recalculates the additional CPF using the original rate applicable in each month, but based on the new limit. The difference between the original CPF amounts and the recalculated CPF amounts are returned in variables.

Calculating Additional CPF Adjustments in the Segment

The formula CPF FM ADD ADJ SEG calculates the additional CPF adjustment in the segment, which is called by the historical rule CPF HR ADD ADJUST.

This formula is executed for each segment returned by the historical rule. It recalculates additional CPF using the original rate, but based on the new limit. The difference between the original CPF amounts and the recalculated CPF amounts are returned in variables (Extra Emplr CPF and Extra Ee CPF). The processing is as follows:

If there were additional wages included in the segment and CPF was not calculated on them, the extra CPF that should have been taken is calculated.
If you hit the limit this month, just the CPF on wages up to the limit is calculated.
The CPF is calculated using the rates that were stored during the original calculation.

See Also

Setting Up and Managing Employee and Employer CPF Details

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 section discusses how to:

Calculate MBMF contributions.
Calculate SINDA contributions.
Calculate FWL contributions.
Calculate SHARE programme donations.
Calculate SDL contributions.
Calculate CDAC contributions.
Calculate ECF contributions.

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, and their citizenship status is citizen or permanent resident, 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 not foreign worker, the deduction is made.

Calculating FWL Contributions

FWL is a levy paid by the employer for all foreign workers.

The generation control CPF GC FWL uses formula CPF FM FWL GC, to determine if the employee is either a foreign worker, or was a foreign worker and became 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 7 — permanent resident, and the permanent residence date is in the current month (based on month from period end date), the levy is paid.

The variable CPF VR FWL ST DT is used to enter the start date of the FWL. If its 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.

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 monthly amount from the bracket. For a partial month, it is calculated using the daily amount for each CPF VOL EE day in the partial period.

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 who earn less than 2000 SGD in a month. The rate of contribution is 1% of the employee's earnings, or at least 2 SGD. The SDL deduction uses formula CPF FM SDL CALC. The limit (2000), rate (1%) and minimum amount (2) are stored in the following PeopleSoft maintained variables:

CPF VR SDL LIMIT — holds the wage limit for SDL contribution as 2000 SGD for the calculation of SDL.
CPF VR SDL PERCENT — holds the percentage as 1% 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 1500 SGD), the sum of SGP GROSS × variable CPF VR SDL PERCENT (1%) 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 is citizen or permanent 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 is citizen or permanent 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.

See Also

Setting Up and Managing Employee and Employer CPF Details

Setting Up and Managing Additional CPF Details

Use the CPF Rates SGP (GPSG_CPF_RATES) component to set up and manage additional CPF details.

This section discusses how to set up and manage CPF details.

Pages Used to Set Up and Manage CPF Details

Page Name	Definition Name	Navigation	Usage
CPF Rates SGP	GPSG_CPF_RATES	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, CPF Rates SGP, CPF Rates SGP	View and manage the CPF contribution rates required for CPF calculations. These are the rates specified by the CPF legislation and are PeopleSoft maintained. The data is accessed via the CPF AR RATES array, using formula CPF FM RATE LOOKUP, which retrieves the appropriate calculation rates for each employee.
CPF/FWL Late Interest SGP	GPSG_CPF_INTEREST	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Addl Rates, Ceilings, Values, CPF/FWL Late Interest SGP, CPF/FWL Late Interest SGP	Maintain late payment interest payable by an employer for FWL and CPF by an employer. These are included in the interface files and reports the employer provides to the CPF Board.

See Also

Setting Up and Managing Employee and Employer CPF Details

Running CPF Reports and Files

This section provides an overview of CPF reports and files.

Note. If you elect to use the delivered rules for Global Payroll Singapore, use only the employment instance in HR.

Understanding CPF Reports and Files

To simplify the CPF reporting process, and the collection of the data needed for CPF reports and files, all the amounts needed from the Global Payroll processing results are stored in the GPSG_CPF_RSLTS table, using the writable array CPF WA RESULTS. The array puts all of the MTD amounts calculated for all of the CPF contributions and other related Global Payroll results into a single record (CPF Monthly reporting table).

Prior to running any of the monthly reports, you need to run the CPF Report Data Creation process. This process carries out all the required processing, such as identifying new hires and terminations, and determining the CPF account numbers. After that, you can produce the following reports and files, using relatively simple processes:

CPF/IRAS Line File.

The CPF/IRAS Line File Creation process enables you to create a flat file in the format required for submitting monthly CPF payments to the CPF Board using the CPF/IRAS Line software.
CPF PAL Internet File.

The CPF PAL-Internet File Creation process enables you to create a flat file in the format required for submitting monthly CPF payments directly to the CPF Board via the internet.
CPF Mthly Contributions Report.
CPF Contributions List.

CPF Contributions List process creates a list of the contributions for all of the funds on a single report.
CPF Adjustments Report.

CPF Adjustments Report process creates a list of the CPF contributions on a single report.

The GPSG_CPF_RPTG table is used for producing the CPF reports and files for submission to the CPF Board. It is populated when you run the monthly CPF Data Creation process.

Pages Used to Run the CPF Reports

Page Name	Definition Name	Navigation	Usage
Create CPF Reporting Data SGP CPF PAL-Internet File Creation Create CPFLine SGP	CPSG_CPF_RPTG_RC	Global Payroll & Absence Mgmt, Authority Correspondence, Create CPF Reporting Data SGP, Create CPF Reporting Data SGP Global Payroll & Absence Mgmt, Authority Correspondence, Create CPF-PAL Internet SGP, Create CPF-PAL Internet SGP Global Payroll & Absence Mgmt, Authority Correspondence, Create CPFLine SGP, Create CPFLine SGP Creation	Create the monthly CPF data that can be used for creating reports and files for submission to the CPF Board.
CPF Mthly Contribution Rpt SGP	CPSG_CPF_CONRPT_RC	Global Payroll & Absence Mgmt, Authority Correspondence, CPF Mthly Contribution Rpt SGP, CPF Mthly Contribution Rpt SGP	Create multiple reports.
CPF Mthly Contribute List SGP	GPSG_CPF_CONLST_RC	Global Payroll & Absence Mgmt, Authority Correspondence, CPF Mthly Contribute List SGP, CPF Mthly Contribute List SGP	Create a list of the contributions for all of the funds on a single report.
CPF Adjustment Report SGP	GPSG_CPF_ADJ_RC	Global Payroll & Absence Mgmt, Authority Correspondence, CPF Adjustment Report SGP, CPF Adjustment Report SGP	Create a list of the CPF contributions on a single report.

See Also

Setting Up and Managing Employee and Employer CPF Details