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How to Calculate CDAC Contribution
Employer guide to CDAC contribution in Singapore, including wage bands, payroll examples, deduction steps and CPF submission checks.
CDAC contribution is a monthly self-help group deduction that Singapore employers may need to handle for Chinese employees. It is deducted from the employee’s wages and paid together with CPF contributions.
For payroll teams, the calculation is simple once the employee scope and monthly total wages are clear. The employer checks whether CDAC applies, matches the employee’s monthly total wages to the official CPF Board rate band, deducts the fixed amount, and keeps the deduction in the payroll record.
Who Needs CDAC Contribution?
CDAC contribution applies to employees who fall within the Chinese Development Assistance Council contribution scope. CPF Board guidance states that self-help group contributions are generally based on the employee’s race indicated on the NRIC, except MBMF which is based on religion.
Before deducting CDAC, employers should check:
- The employee’s race information in HR records.
- Whether the employee is within the CDAC contribution scope.
- Whether monthly total wages have been calculated correctly.
- Whether the employee has any approved instruction affecting contribution.
CDAC Contribution Rates
CDAC is calculated using fixed monthly amounts. It is not a percentage of salary.
| Monthly total wages | Monthly CDAC contribution |
|---|---|
| $2,000 or less | $0.50 |
| >$2,000 to $3,500 | $1 |
| >$3,500 to $5,000 | $1.50 |
| >$5,000 to $7,500 | $2 |
| >$7,500 | $3 |
How To Calculate CDAC Contribution
Use this monthly payroll flow:
- Confirm whether CDAC applies to the employee.
- Calculate the employee’s monthly total wages.
- Find the correct CDAC wage band.
- Deduct the fixed monthly contribution from wages.
- Pay the amount together with CPF contributions.
- Keep the wage band and deduction amount in the payroll record.
Payroll Examples
Employee | Monthly total wages | Applicable band | CDAC deduction |
|---|---|---|---|
Employee A | $1,900 | $2,000 or less | $0.50 |
Employee B | $3,200 | >$2,000 to $3,500 | $1 |
Employee C | $4,800 | >$3,500 to $5,000 | $1.50 |
Employee D | $8,200 | >$7,500 | $3 |
Common Payroll Mistakes
- Calculating CDAC as a percentage instead of a fixed monthly amount.
- Using basic salary when monthly total wages should include other wage components.
- Applying CDAC to the wrong employee group.
- Forgetting to update the deduction after monthly wages cross a band.
- Not keeping a record of the rate band used for the deduction.
If you are checking CDAC together with CPF, use our CPF contribution calculator to estimate CPF first, then apply the CDAC wage band separately.
How Employers Should Handle Payment
CPF Board collects self-help group contributions on behalf of the self-help groups. Employers are expected to deduct the applicable amount from employee wages and pay it together with CPF contributions.
For monthly payroll, keep the CDAC process close to CPF reconciliation:
- Review employee profile changes before payroll closes.
- Confirm monthly total wages after overtime, allowances, or other wage items are added.
- Check CDAC together with other self-help group deductions.
- Reconcile the submitted amount against payslips and payroll reports.
Source To Verify
Use CPF Board’s self-help group contribution guidance as the source of truth before closing payroll. Rates, scope, and payment instructions should be checked again if payroll rules or employee circumstances change.
Frequently Asked Questions
Is CDAC contribution paid by the employer or employee?
CDAC contribution is generally deducted from the employee’s wages. The employer pays it together with CPF contributions through the CPF payment workflow.
Is CDAC contribution a percentage of salary?
No. CDAC uses fixed monthly dollar amounts based on monthly total wages. The amount ranges from $0.50 to $3 under the CPF Board contribution table.
What wages should employers use for CDAC contribution?
Use monthly total wages for the payroll month, then match the amount to the official CDAC wage band.
Where should employers verify CDAC contribution rates?
Employers should verify CDAC rates on CPF Board’s self-help group contribution page before finalising payroll.
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