Treatment of decimal places needs to be applied correctly to CPF computation. Steps to compute CPF contribution:

  • Compute the total CPF contribution (rounded to the nearest dollar)

  • An amount of 50 cents should be regarded as an additional dollar

  • Compute the employee’s share of CPF contribution (cents should be dropped)

  • CPF Employer contribution = Total CPF contribution – CPF Employee contribution

Did this answer your question?