Set Up Employee Contributions for Singapore

You set up your Singapore employee records in People to calculate the correct statutory contributions. These contributions are calculated during the payroll process and deducted from the employee's pay.

Set Up Employee Mandatory Contributions to CPF

Singapore employers are required to make Central Provident Fund (CPF) contributions for your employees who are either Singapore citizens or Singapore Permanent Residents.

To set up your employee to make mandatory CPF contributions:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. Select Contribute to CPF. The calculations will depend on the employee’s citizenship status. For permanent residents, in SPR Start Date, select the date they were granted permanent residency, and then select the CPF option that applies when they began their employment in CPF Rate:
   • Permanent Resident FF: Full employer and full employee rate
   • Permanent Resident FG: Full employer and graduated employee rate
   • Permanent Resident GG: Graduated employer and graduated employee rate
4. Note: After selected and saved, Dayforce doesn't change the option shown in CPF Rate. For the Permanent Resident FG and Permanent Resident GG options, Dayforce calculates CPF based on the SPR Start Date and the employee’s citizenship status.
4. Click Save.

Set up Voluntary Contributions to CPF

Singapore employers can make additional contributions to your employees' Central Provident Fund (CPF) savings.

To enable voluntary CPF contributions for your employee for the first time:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. Select Overseas Posting if your employee (Singapore citizen or permanent resident) is based outside of Singapore.
4. In the employee's new tax definition record, in VCPF Type, select one or more types of voluntary contribution:
   • EE VCPF: Employee voluntary CPF
   • ER VCPF: Employer voluntary CPF
5. In VCPF Start Date, enter when the voluntary contributions will begin.
6. Click Save.
7. Click Payroll > Payroll Elections.
8. In the Payroll Elections section, click Add to add a new payroll election for the voluntary CPF contribution.
   1. Enter a start date for the contribution. If needed, enter an end date.
   2. In the Type field, select Deduction, and then select the deduction's payment schedule.
   3. In the Code field, select VCPF EMPLOYEE for employee contributions or VCPF EMPLOYER for employer contributions.
   4. Enter the contribution amount in the Parameters section, in Amount.
   5. If you want to add another voluntary CPF contribution, create a new payroll election.
9. Click Save.

Set up Employee Contributions to Self-Help Groups

Each major community in Singapore has a self-help group to which members of that community contribute. Each employer is expected to deduct these contributions from their employees' wages and submit these contributions to CPF. The contribution amount is based on the rates set by the CPF; the amount deducted is based on the employee's monthly wage.

To set up contributions to self-help groups for an employee:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. In the employee's new tax definition record, select the self-help group.
   • Opted for CDAC for the Chinese Development Assistance Council fund (CDAC).
   • Opted for ECF for the Eurasian Community Fund (ECF).
   • Opted for SINDA for the Singapore Indian Development Association (SINDA).
   • For the Mosque Building and MENDAKI Fund (MBMF), set up your employee's choice using these options:
     • Select Opted for MBMF if your employee has chosen to contribute to all MBMF components.
     • Select Opt Out MB if your employee contributes to MBMF but has opted out of the mosque building component. Then, if applicable, in MB Stop From Date and MB Stop To Date, you can select how long the employee has chosen to opt out.
     • Select Opt Out MF if your employee contributes to MBMF but has opted out of the MENDAKI funding component. Then, if applicable, in MF Stop From Date and MF Stop To Date, you can select how long the employee has chosen to opt out.
4. Click Save.

If your employee is making a contribution that is different from the amount set by the CPF rates, see Override Self-Help Group Contributions.

Set up the Foreign Worker Levy in the Employee Record

For employees who are subject to the Foreign Worker Levy (FWL), set up their employee record so that Dayforce calculates the FWL employer contribution amount:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. In the employee's new tax definition record, in Issue Date, enter the date the employee's work pass or work visa was issued.
4. Note: When the pass or work visa expires or is cancelled, you need to enter the expiration date or when the pass or work visa was cancelled.
4. Select Opted for FWL, and then select the type of pass or work visa, and worker category (tier or levy rate) that applies to this employee.
5. Make sure the Contribute to CPF checkbox is left blank.
6. Click Save.

Set up Skills Development Levy in the Employee Record

For all employees, set up their employee record so that Dayforce calculates the Skills Development Levy (SDL) employer contribution amount:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. Click Add to enter a new start date for this payroll change. You also need to enter an end date for the currently active tax definition record.
3. In the employee's new tax definition record, select Contribute to SDL.
4. Click Save.