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GPSGP: CPF Contribution Incorrect For PR Status Change Where Total Wage Exceeds 6000 (Doc ID 2366906.1)

Last updated on MAY 11, 2018

Applies to:

PeopleSoft Enterprise HCM Global Payroll Singapore - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

STATEMENT:
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CPF contribution incorrect for PR status change where total wage exceeds 6000.
Since total wage exceed 6000 and there is mid month PR status change, the CPF contribution should be prorated based on the ordinary wage limit ie 6000

STEPS TO REPLICATE:
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The issue can be reproduced with the following steps:

1.Choose employee where total wages exceed 6000.
2.Change PR status in middle say on 16 Oct 2017.
3.Run Oct payroll. CPF contribution calculated is incorrect.

4.Based on user, the prorated CPF contribution should be:
6000 * 12/22 (Since the max ORD wage limit is 6000) * 9% = 294.54 ~ 295
CPF ORD EE = 5% * (6000 * 12/22) = 163.64 ~ 163 (round down)
CPF ORD ER = 295 – 163 = 132

Cause

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