Detailed CPF calculation (with wage types) in Singapore Retro Payroll

[S_Mukherjee]

Employee basic Salary has been increased from 19899 $ to 20595 $ w.e.f from 1st January 2023. But this change has been done in April 2023. So, the system will automatically trigger retro accounting.

Employee Allowances = 550 SGD. (SGD->Singapore dollar)

Now, PCR RC40 will populate /T02 during retro payroll calculation for the period of 01/2023 in period 04/2023.

/T02= Old Value of OW in January i.e (19899+550) =20449 SGD.

/102 = New Value of OW for January i.e (20595+550) =21145 SGD.

/F02= (21145-20449) = 696 SGD.

For 3 months (696*3) = 2088 SGD.

PCR RC10 creates the /103 in the current period for the difference amount (2088 $) in the OW brought forward to current period. Thus, the value of /103 will be added with the value of /F02 from 01/2023. This also means that the retro changes have now triggered an AW calculation of CPF and not an OW calculation for CPF.

Suppose, a bonus payment of 102512 SGD has also been made on April 2023, which will be treated as AW.

Total gross = /101 = (20595+550+102512) = 123657 SGD

OW for CPF = /102 = (20595+550) = 21145 SGD

AW for CPF = /103 = (102512+2088) = 104600 SGD.

For calculating CPF technical wage types, function RSCPF will take P0002 Table (for age and DOB) and SV Table (for fund type details) as input.

OW for CPF after prorate = /302 = 21145 SGD.

AW for CPF after prorate = /303 = 104600 SGD.

TW for CPF after prorate = /304 = (/302 + /303) = 125745 SGD.

CPF OW ceiling as per Law 6000 $ up to August 2023.(Maintained in CAPOW constant in T511K)

OW of CPF after capping = /399 = 6000 SGD.

AW Ceiling as per law:

[102000 – (OW subjected to CPF of the year)] = [102000- (6000*12)] = 30000 SGD.

If there is a change in the additional wages (AW) of the previous month then also the difference is brought forward from /F03 to /103. Let's say the amount is 675 SGD.

Then, New AW Ceiling = (30000 - 675)= 29325 SGD.

AW paid to CPF = /309 = 29325 SGD.

AW unpaid to CPF = /310 = (/303 - /309) = (104600-29325) = 75275 SGD.

For current OW, Calculation will be based on contribution rates maintain in V_T5R1C. 

Employee TW/OW CPF Contribution = /350 = 1200 (from config table V_T5R1C)

Employee DW/AW CPF Contribution = /352 = (/309 * 20%) = (29325 * 20%) = 5865 

Employer TW/OW CPF Contribution = /354 = 2220 (from config table V_T5R1C)

Employer DW/AW CPF Contribution = /356 = (/309 * 37%) = (29325 * 37%) = 10850.25 

Employee CPF TW/OW Contribution base = /3BA = 21145 SGD.

Employee CPF DW/AW Contribution base = /3BB = 29325 SGD.

Employer CPF TW/OW Contribution base = /3BC = 21145 SGD.

Employer CPF DW/AW Contribution base = /3BD = 29325 SGD.

Employee Limit for TW/OW CPF = /3LA = 1200 SGD. (config table)

Employee Limit for DW/AW CPF = /3LB = 29325 SGD. (AW Ceiling)

Employer Limit for TW/OW CPF = /3LC = 2220 SGD. (config table)

Employer Limit for DW/AW CPF = /3LD = 29325 SGD. (AW Ceiling)

Employee CPF Current contribution/ sum = /305 = (/350+/352) = (1200+5865) = 7065 SGD.

Total CPF Current contribution/ sum = /306 = (/354+/356) = (2220+10850) = 13070 SGD.

Employer CPF Current contribution/ sum = /307 = (/306-/305) = 6005 SGD.