Example 1:
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For month of June 2023
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Current OW ceiling =
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$6,000
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CPF contribution rate for employee’s share =
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20%
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Employee’s share of CPF contributions based on current OW ceiling =
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$6,000 * 20% = $1,200
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a) Salary with Employer A =
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$6,100
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b) Your employee’s share of CPF contributions paid by employer A =
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$6,000 (current OW ceiling) * 20% = $1,200
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c) The amount of employee’s share of CPF contributions you want employer A to contribute on your OW =
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$1,200
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a) Salary with Employer B =
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$2,000
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b) Your employee’s share of CPF contributions paid by employer B =
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$2,000 * 20% = $400
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c) The amount of employee’s share of CPF contributions you want employer B to contribute on your OW =
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$0
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Example 2:
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For month of June 2023
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Using the same OW ceiling of $6,000 as example.
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Employee’s share of CPF contributions based on current OW ceiling =
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$1,200
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a) Salary with Employer A =
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$8,000
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b) Your employee’s share of CPF contributions paid by employer A =
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$6,000 (current OW ceiling) * 20% = $1,200
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c) The amount of employee’s share of CPF contributions you want employer A to contribute on your OW =
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$1,000
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a) Salary with Employer B =
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$2,000
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b) Your employee’s share of CPF contributions paid by employer B =
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$2,000 * 20% = $400
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c) The amount of employee’s share of CPF contributions you want employer B to contribute on your OW =
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$200
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Note: The value in (c) should not exceed (b) for the respective employer, and the sum of (c) across all employers must be equal to the maximum CPF payable on OW (i.e. prevailing OW ceiling x employee’s share of contribution rate applicable to you)
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Please also take note that whenever there are change(s) to the circumstances which may affect your CPF contributions on your OW, such as, but not limited to:
- changes to current OW ceiling
- your total combined OW falls below the current OW ceiling
- changes to employment status (e.g. new or left employment, no longer concurrently employed by 2 or more employers)
- changes to contribution rates
- crossing over to another age group as different contribution rates apply to different age group
you must inform all your affected employers the revise apportionments of your employee’s share of CPF contributions, if applicable.
Please see below Example 3 for better illustration of circumstance change(s).
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Example 3:
OW ceiling adjustment change from $6,000 to $6,300
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For month of September 2023
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Employee’s share of CPF contributions based on current OW ceiling =
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$6,300 * 20% = $1,260
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a) Salary with Employer A =
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$6,100
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b) Your employee’s share of CPF contributions paid by this employer A =
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$6,100 * 20% = $1,220
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c) The amount of employee’s share of CPF contributions you want this employer A to contribute on your OW =
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$1,220
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a) Salary with Employer B =
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$2,000
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b) Your employee’s share of CPF contributions paid by this employer B =
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$2,000 * 20% = $400
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c) The amount of employee’s share of CPF contributions you want this employer B to contribute on your OW =
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($6,300 * 20% = $1,260) - $$1,220 (Employee's share under Employer A)
= $40
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In the event of any circumstance change(s) (i.e. the above example illustrate change to OW ceiling), the employee (applicant) has to revised the apportionments by using the applicable rates and inform all affected employers of the new revised apportionments.
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