How to Calculate CPF for a Resigned Employee in Singapore

Modified on Wed, 16 Apr at 4:16 PM

FAQ: How to Calculate CPF for a Resigned Employee (Singapore)

When an employee resigns, it’s important to ensure CPF contributions are properly computed up to their final month of service. Follow the steps below to determine the final CPF amount payable.

✅ Step-by-Step Guide

Step 1: Use the CPF Additional Wage (AW) Ceiling Calculator
Go to the official CPF calculator here:
CPF AW Ceiling Calculator

Input the employee’s total wages (Ordinary + Additional Wages) from January up to the final month of service.
Set the month of resignation as the last month used in the calculator.

Step 2: Note the "Total CPF Contribution Payable"
From the calculator results, take note of the Total CPF Contribution Payable amount. This represents the maximum CPF contributions (employer + employee) allowed for the year, up to the resignation month.

Step 3: Add Up Actual CPF Paid So Far
Manually total up the CPF contributions already paid from January to the last full month before resignation (e.g. if resignation is in April, sum up Jan–Mar).

Step 4: Calculate the Balance CPF Payable
Subtract the CPF already paid from the CPF payable amount in Step 2:

$Balance CPF = Total CPF Payable (Step 2) - Total CPF Paid (Step 3)$

Step 5: Split the CPF into Employer & Employee Portions
Use the CPF formula or CPF contribution rate table to break down the balance CPF into:

Employee CPF (deduct from final salary)
Employer CPF (additional cost to employer)

You can refer to this rate table for reference:
CPF Contribution Rates

Example

If the calculator shows $20,277 CPF payable up to April, and the employee has already contributed $14,430 from Jan to Mar:

$Balance CPF to pay =20,277 - 14430 = 5847$

Apply the rate (e.g. 20% employee, 17% employer) to divide this amount accordingly.

Tip for HReasily Users

When processing the final payroll, HReasily will auto-calculate the CPF contributions based on resignation date and entered wages. Always double-check the AW limit to ensure compliance.