๐Ÿงฎ

๐Ÿงฎ ๐Ÿ‡ธ๐Ÿ‡ฌ Gross to Net Payroll โ€” Singapore (PYSG) | SAP ECP

Module: PYSG | Molga: 20 | Currency: SGD | Group: APAC
Includes: CPF (age-graduated) | IR8A / AIS | SDF Levy | NS Make-up Pay | 3 case studies

๐Ÿงญ The Gross-to-Net Pipeline

Ordinary Wages (OW) (/101) โ†’ CPF EE Deduction โ†’ NET PAY (/560)
Singapore has no payroll withholding tax for residents (employee files own tax return). The main deduction is CPF (Central Provident Fund) for Singapore Citizens and PRs.

๐Ÿ“Œ Singapore Payroll Anchors

  • CPF EE: 20% of OW (age <55); age-graduated above 55
  • CPF ER: 17% of OW (age <55)
  • OW ceiling: SGD 6,800/month (2025)
  • AW (Annual Wage/bonus) ceiling: SGD 102,000 minus OW contributed
  • SDF Levy: 0.25% ER on wages โ‰ค SGD 4,500
  • IR8A: annual employment income to IRAS by March 1 (AIS scheme)
  • Non-residents: 15% flat tax withheld by employer
  • NS Make-up Pay: government scheme for reservist employees

๐Ÿ‘ฅ Case Studies

ใ…ค
Case A: SC <55
Case B: PR age 60-65
Case C: Expat (non-res)
Monthly OW
SGD 6,000
SGD 5,000
SGD 15,000
CPF EE
20% = SGD 1,200
7.5% = SGD 375
0
CPF ER
17% = SGD 1,020
11.5% = SGD 575
0
WHT (non-res)
0
0
15% = SGD 2,250
Net Pay
SGD 4,800
SGD 4,625
SGD 12,750

๐Ÿ—๏ธ Step 1 โ€” Salary Structure (SGD)

Component
WT
Monthly (SGD)
Notes
Monthly Salary (OW)
SG01
6,000
Subject to CPF OW ceiling
Bonus (AW)
SG20
โ€”
CPF AW ceiling applies
OW /101
ใ…ค
6,000
OW โ‰ค SGD 6,800 ceiling

๐Ÿ”ข Step 2 โ€” CPF (Case A: SGD 6,000, <55)

  • OW for CPF: SGD 6,000 (below ceiling of SGD 6,800)
  • EE 20%: SGD 1,200 โ†’ /3C1
  • ER 17%: SGD 1,020 โ†’ /3C2
  • Net pay: SGD 6,000 โˆ’ SGD 1,200 = SGD 4,800

๐Ÿ”ข Step 3 โ€” Age-Graduated CPF (Case B: SGD 5,000, age 60-65)

  • EE 7.5%: SGD 375; ER 11.5%: SGD 575
  • PCR SGCP routes to correct age bracket from IT0002 DOB

๐Ÿ”ข Step 4 โ€” Net Pay Summary

ใ…ค
SC <55
PR 60-65
Non-resident
Gross /101
SGD 6,000
SGD 5,000
SGD 15,000
CPF EE
โˆ’1,200
โˆ’375
0
WHT (non-res)
0
0
โˆ’2,250
Net /560
4,800
4,625
12,750

๐Ÿท๏ธ Key Wage Types

WT
Description
Payslip?
SG01
OW
โœ…
/3C1
CPF EE
โœ…
/3C2
CPF ER
Informational
/3SD
SDF Levy
Internal
/3T1
WHT (non-res)
โœ…
/560
Net Pay
โœ…

๐Ÿ“… Statutory Calendar (Singapore)

Activity
Deadline
CPF GIRO payment
14th of following month
IR8A / AIS submission
March 1
NS Make-up Pay claim
Within period

SuccessLabs Academy | SAP ECP Singapore Payroll (PYSG) | Gross-to-Net Playbook