Payroll formulas

CPF Contributions (Citizens/SPR* 3rd Year/CPF-in-lieu):

CPF Contributions (SPR*):

SPR* 1st Year

SPR* 2nd Year

Additional Notes for employee obtaining SPR* mid-month:

  • Monthly Salary liable for CPF contributions will be prorated based on the following formula:

(Monthly Salary/No. of working days in the month) x (No. of working days since employee has been granted PR)

  • Manually added pay item & recurring pay items liable for CPF contributions will be prorated based on the following formula:

(Pay Item Amount Indicated/No. of days in the month) x (No. of days since employee has been granted PR)

* SPR refers to Singapore Permanent Resident

Additional Wage Ceiling CPF Contributions:

$102,000 - Total Ordinary Wages Subject to CPF (capped at $6,000/month)

Leave Encashment:

(Monthly Salary x 12 months) / (Avg no. of work days x 52 weeks) x No. of leave days left

Unpaid Leave:

(Monthly Salary / No. of working days in month) x No. of unpaid days

Overtime Hourly Rate (based on basic salary, recommended by MOM):

(Monthly Salary x 12 months) / (52 weeks x 44 hours)

Leave formulas

Leave entitlement for the year (with increments, based on anniversary):

[(No. of days between 1 Jan - Employee's Hired Date)/365 days x (No. of days entitled)] + [(No. of days between Employee's Hired Date - 31 December)/365 x (No. of days entitled)]

Example of 2020 (leap year) leave entitlement:

  • Employee's hired date is 8 March 2019
  • Leave increment is based on 1 year of work > 1 extra day of leave. Base entitlement is 14 days.

1 January - 7 March 2020 (67 days)

67/366 x 14 entitled days = 2.56

8 March - 31 December 2020 (299 days)

299/366 x 15 entitled days = 12.25

2.56 + 12.25 = 14.81 = 15 days (nearest half)

Leave entitlement for resigned employee:

[(No. of days between 1 Jan - Employee's Last Date of Employment)/365 days x (Total no. of days entitled for the year)]

Example of 2020 (leap year) leave entitlement:

  • Employee's last date is 16 July 2020
  • Base entitlement is 14 days

1 January - 16 July 2020 (198 days)

198/366 x 14 entitled days = 7.57 = 7 days (nearest half)

Earned Leave

[Leave entitled for the entire year / 12 months} x Number of completed months

Claim formulas

Claims with GST:

Total claim amount x 7% = GST amount

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