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).
  • Employer’s share = Total contribution – Employee’s shared.
  • Employers can pay SDL together with their employees’ CPF contributions.
  • For SDL, cents should be ignored only when you arrive at the total SDL Payable.
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