We’d like to confirm the CPF Scale Down requirement. Please see scenarios below and kindly indicate if CPF Scale Down should be calculated on each of these scenarios or not as this calculation is not statutory hence we need to ask the specific requirement for some cases.
a. Employee have Total wage less than 50
- As per statutory CPF is only calculated if Total Wage is greater than SGD 50.00 hence would the CPF Scale Down still be calculated though wage is less than 50.00? As per the requirement given to us previously, CPF Scale Down compensation codes does not check the wage hence it gets the highest rate for the age bracket so we’d like to confirm this case if employee’s total wage is less than SGD 50.00 would we still scale down? Please confirm.
Tricor > The objective for scale down element codes is to have the employees to absorb the employer CPF. So if there is no employer CPF to be computed or say in the case of a foreigner who does not contribute CPF, then the full amount will be paid to the employees.
So if the gross amount payable is $45 and that is the only payout for the month, the employer CPF is not payable, the will get the full $45.
MAUREEN: Follow Statutory CPF Rate Table for minimum wage to be calculated for CPF hence if employee have total wage less than 50 based from current CPF Table hence no CPF Scale Down also.
b. Employee have only School Free or Incentive in the period
- I believe this should still be calculated with CPF Scale Down as it is subjected to the monthly statutory CPF calculation. Kindly double confirm.
MAUREEN: Calculate CPF Scale Down as long as amount is CPFable meaning greater than 50.00
c. Employee have School Free or Incentive in the exit run
- I believe this should still be calculated with CPF Scale Down as it is subjected to the monthly statutory CPF calculation. Kindly double confirm.
MAUREEN: Calculate on any type of Payroll Run as long as there is a CPF Scale Down Element/Compensation Code.
d. Employee have School Free or Incentive in the post exit run
- I believe this should still be calculated with CPF Scale Down as it is subjected to the monthly statutory CPF calculation. Kindly double confirm.
Tricor > Based on the element codes to scale down not the runs.
MAUREEN: Calculate on any type of Payroll Run as long as there is a CPF Scale Down Element/Compensation Code.