General
The employment social liability contributions mentioned as below are now mandatory in Singapore
Central Provident Fund (CPF) → What is CPF
Skills Development Levy(SDL) → What is SDL?
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Q: What is entitled to CPF and SDL contribution in Singapore?
A:
Items | Individuals under Employment | Estimated Cost per month | Base of contributions and rule of calculation |
CPF | - Singapore citizens (SCs) - Singapore permanent residents (SPRs) - Foreigners is exempted | Variable depends various factors including the Ages Group, citizenship status, seniority of SPR, appliable wages, you may find more details how is calculated at → CPF contribution calculator，and further explanation as below
| Applicable % * Recurring income capped at ceiling announced + Applicable % * non-recurring income e.g. for Singapore citizens 55 yrs old below 17% of Recurring income capped at SGD 7400 as ceiling + 17% of non-recurring income with no cap. |
SDL | - All your employees, including foreign employees, working in Singapore | - SGD2 for Income 0~SGD 2000 - 0.25% of income earning capped at SGD4500 as ceiling
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Q: How do the factors above influence the contribution?
You may find the detailed in → CPF Contribution from Sep 2023
Page 1 - Singapore Citizens and SPR with 3 years+ seniority
Page 2&4 - SPR during 1st year
Page 3&5 - SPR during 2nd year
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Q: Under what circumstance, shall the employer anticipate cost contributions to change?
A:
With Any changes occurs to the recurring income, including the incomplete months worked during onboarding or offboarding with recurring cost less than the ceilings of SDL & CPF
At the month of announced schedule for the change in CPF salary ceilings is applicable to employees whose recurring income exceeds the current ceiling. What are the changes to the CPF salary ceilings from 1 September 2023
Any non-recurring income added to employee's certain months' payroll.