Most countries have some kind of mandatory deduction to the income. It could be income tax – tax deducted at source,or it could be Provident Fund, or some other voluntary contribution.
Singapore CPF Rules
In Singapore, all salaried employees need to contribute 5-20% of their salary, depending on age into their Central Provident Fund ( also called as CPF). The employer contributes 6.5 to 16% of the salary to the CPF Fund, depending on the age of the worker.
So payroll executives from Finance or HR professionals need to calculate the correct amount for the contribution to CPF, and provide the net salary to the employees. Employer also needs to know their total payroll expenses so as to know their Payroll Liability each month.
Calculating CPF Rates for Employee & Employer in Singapore
I have created a simple Excel spreadsheet to calculate the CPF Rates and Amounts in Singapore in this matter. If you wish to use this you can fill in your own employees details, their age & basic pay, and the following is automatically calculated:
- Employee’s contribution,
- The employer contribution,
- Total payable to CPF,
- Net salary to employee
- Gross Salary expense of employer
The spreadsheet uses simple formulas that are already pre-programmed. So you can just begin to use this spreadsheet for your company. It has been tested for CPF Contribution Rates in 2013 and beyond, and everything will work smoothly.
If you need any enhancements in calculating CPF contribution and Payroll expenses for companies in Singapore, or have any comments, do let us know. You can leave a comment below this post.
And of course, if you wish to learn how to create such excel spreadsheets, and use simple Microsoft Excel formulas and functions, you can also attend our Microsoft Excel Training classes in Singapore.
Hope you like this CPF Calculator Excel Template for calculating the CPF in Singapore. If you like it, I would appreciate if you Like Us on Facebook, and leave a comment below!
Vinai Prakash, MBA, PMP, ITIL, GAP, Six Sigma
Master Trainer, Intellisoft Systems
Vinai teaches Advanced Excel Techniques, Dashboard Techniques using Excel, Data Interpretation and Analysis Training courses at Intellisoft. He has trained over 5000 students in over 18 countries, and regularly conducts Excel Workshops in Singapore, Malysia, Indonesia, Australia, India, Dubai, Egypt, Zimbabwe, South Africa etc.
Contact Intellisoft to book a Certified Microsoft Excel Trainer for your Training needs.