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