Calculating Normal CPF Deductions

CPF contributions must be paid for all employees who are Singapore Citizens or Permanent Residents (PR). 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 deductions will 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 all of the deductions to include Singapore Citizens and Permanent Residents and to determine whether the payee is eligible for CPF contribution. (Only Singaporean citizens and permanent resident are eligible). For the rare exceptions, payee level overrides are allowed.)

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

The CPF ORD EE deduction is used for employee ordinary CPF contributions. The deduction uses an Amount calculation rule, where the amount is derived from formula CPF FM ORD PAYEE.

The CPF ADD EE deduction is used for the employee's (payee's) share of contributions made for Additional Wages. The deduction uses an Amount calculation rule, where the amount is derived from formula CPF FM ADD PAYEE.

The CPF ORD ER deduction is used for the employer's share of contributions made for ordinary wages. The deduction uses an Amount calculation rule, where the amount is derived from formula CPF FM ORD ER.

The CPF ADD ER deduction is used for the employer's share of contributions made for Additional Wages. The deduction uses an Amount calculation rule, where the amount is derived from formula CPF FM ADD ER.