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.