The following document shows how employers should calculate the CPF contributions for their employees. It contained 15 pages included tables in 11 annexes, numbered A to L. Click here.
It is a nightmare for a small employer to calculate the CPF contribution correctly for their employees. It is also costly for them to engage a developer to write the codes for the CPF contributions in their payroll systems.
I suggest that the government should simplify the contribution rates as follows:
a) Set up the table showing the "standard rates" for contribution rates applicable to employees in the private sector.
b) The contribution rates for older employees and permanent residents can be set certain percentages of the standard rates.
The public sector can be handled in a separate paper.
Tan Kin Lian
It is a nightmare for a small employer to calculate the CPF contribution correctly for their employees. It is also costly for them to engage a developer to write the codes for the CPF contributions in their payroll systems.
I suggest that the government should simplify the contribution rates as follows:
a) Set up the table showing the "standard rates" for contribution rates applicable to employees in the private sector.
b) The contribution rates for older employees and permanent residents can be set certain percentages of the standard rates.
The public sector can be handled in a separate paper.
Tan Kin Lian
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