What statutory considerations are important for a Singapore company while doing its payroll management?
There are two statutory requirements for employers in Singapore as regards to their contribution per employee.
- Central Provident Fund (CPF) contributions, which are payable only to Singapore Citizens and Permanent Residents.
- Skills Development Levy (SDL), which is payable for all employees, and is used to support workforce upgrading programs, as well as provides training grants to employers.
- Statutory contributions (Eg: Self Help Group contributions like CDAC, MBMF, SINDA, ECF) from employees need to deduct from employee’s monthly payroll.
What is the maximum CPF contribution in Singapore?
The CPF contribution rate for employer and employee is 17% and 20% respectively and depends on certain factors such as employee age, permanent resident status, etc.
When is Central Provident Fund (CPF) required to be paid?
CPF payments are to be paid monthly and within 14 days after the end of the month for which CPF contributions are due.
How much is the SDL contribution in Singapore?
SDF contribution is payable by employers for all employees up to the first $4,500 of gross monthly remuneration at the rate of 0.25% or $2, whichever is higher.
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