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CPF Contributions for your Employees

QIs CPF contribution payable on excess leave taken by an employee?

If the employer deducts the excess leave taken in the month from the employee’s wages in the same month, then CPF contributions should be computed based on the wages after the deduction of the excess leave.


John earns $1,000 per month and is entitled to 12 days of annual leave a year.

He takes nine days of annual leave in June.

As John’s leave entitlement as of June is only six days, he had taken excess leave of three days. Hence, he is deemed to have worked an incomplete month in June, i.e. three working days short of a full month. CPF contributions will be computed based on the incomplete month’s wages in June.

Assuming 20 working days, 1 working day’s wage

= $1,000 / 20 days

= $50

Excess Leave of 3 days

= 3 x $50

= $150

John’s wages in June

= $1,000 - $150

= $850

Hence, CPF is payable on the June’s wages of $850.

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