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How To Calculate CDAC Contribution?
Find out how to calculate your CDAC contribution to your CPF account.
In Singapore, the Central Provident Fund (CPF) is a compulsory savings scheme that helps Singaporeans save for retirement and healthcare needs. It is a social security system that requires contributions from both the employee and employer. One of the components of CPF contributions is the CDAC contribution. In this article, we will discuss how to calculate CDAC contribution in Singapore.
What is CDAC’s Contribution?
The Chinese Development Assistance Council (CDAC) is a self-help group that provides assistance to the Chinese community in Singapore. The CDAC contribution is a mandatory payment that is deducted from the employee’s CPF contribution. The employer is also required to make a contribution to the CDAC. The CDAC contribution is used to support the various programs and initiatives run by the CDAC.
How Much To Contribute To CDAC?
Here is a table for easy reference. The amount is capped at each wage tier.
Note this information is effective 1 January 2015:
Gross Wages/Month | Minimum Employee Monthly Contribution to CDAC |
≤ $2,000 | $0.50 |
> $2,000 to $3,500 | $1.00 |
> $3,500 to $5,000 | $1.50 |
> $5,000 to $7,500 | $2.00 |
> $7,500 | $3.00 |
How to Check CDAC Contribution?
Employees can check their CDAC contribution by logging in to their CPF account on the CPF website. The CDAC contribution will be reflected in the monthly CPF contributions.
Summary
In conclusion, the CDAC contribution is a mandatory payment that is deducted from the employee’s CPF contribution. The contribution rate is based on the employee’s gross monthly salary and is subject to a cap.
The CDAC contribution is used to support the various programs and initiatives run by the CDAC. Employees can check their CDAC contribution by logging in to their CPF account on the CPF website.
Instead of manually calculating your CPF contributions every month, you can use SBO’s Free CPF Calculator to calculate both your CPF contribution & statutory donations!
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