Calculating CPF Funds and Levies Deductions

The FWL deduction is a levy paid by the employer for all foreign workers. It uses a calculation rule of Amount, where the amount is derived from formula CPF FM FWL CALC. 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 during the current month. It is set to Include the employee if the formula is true.

The Mosque Building Mendaki Fund (MBMF) deduction must be paid by all Muslim employees who are Singaporeans or permanent residents each month. The deduction uses a calculation rule of Amount, where the amount is derived from formula CPF FM MBMF CALC. The MBMF deduction is determined by the employees wages for the month. Generation control CPF GC MBMF, using formula CPF FM MBMF CALC calculates MBMF using bracket CPF BR MBMF. Since this is a monthly contribution, the formula looks up the bracket and subtracts any MTD amount.

The MBMF calculates the payments of the Mosque Building Fund (MBF) and the Yayasan Mendaki Fund (YMF) separately.

The Singapore Indian Development Association (SINDA) deduction must be paid by all Indian employees (except foreign workers) each month. The deduction uses a calculation rule of Amount, where the amount is derived from formula CPF FM SINDA CALC. The SINDA deduction is determined by the employees wages for the month. Generation control CPF GC SINDA, using formula CPF FM SINDA CALC calculates SINDA using bracket CPF BR SINDA. Because this is a monthly contribution, the formula looks up the bracket and subtracts any MTD amount.

The Chinese Development Assistance Council (CDAC) deductions are made by all working Chinese Singaporeans and permanent residents. The deduction uses a calculation rule of Amount, where the amount is derived from formula CPF FM CDAC CALC. The CDAC deduction is determined by the employees wages for the month. The generation control CPF GC CDAC, using formula CPF FM CDAC CALC calculates CDAC using bracket CPF BR CDAC. Since this is a monthly contribution, the formula looks up the bracket and subtracts any MTD amount.

The Share Programme Donations (CPF) Board collects SHARE Programme donations on behalf of the Community Chest, National Council of Social Service. The SHARE deduction uses a calculation rule of Amount. 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.

The Eurasian Community Fund (ECF) deduction is used for all working Eurasian Singapore citizens and permanent residents so that they may contribute to the Eurasian Community Fund. The deduction uses an Amount calculation rule, where the amount is derived from formula CPF FM ECF CALC. Contributions vary based on the monthly income of the employee.

ECF contributions are mandatory for all Eurasian employees (Singapore Citizens and Permanent Residents). 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 uses bracket CPF BR ECF. Since this is a monthly contribution, the formula looks up the bracket and subtracts any MTD amount.

The Skills Development Levy (SDL) deduction is a levy on the employer charged for all employees who earn less than 2000 SGD (effective 1st September 2005) in a month. The rate of contribution is 1% of the employees earnings, or at least 2 SGD. The deduction uses a calculation rule of Amount, where the amount is derived from formula CPF FM SDL CALC. The limit (2000), rate (1%) and minimum amount (2) are stored in PeopleSoft maintained variables.