Gross Pay:
In Singapore, Gross Pay is calculated as the total of all CPF (Central Provident Fund) payable additions minus all CPF payable deductions.
Net Pay:
Net Pay represents the total of all addition pay elements minus all deductions. It is the amount that will be credited to the employee's bank account.
Here’s how you can check if the pay elements of your staff are CPF payable:
Step 1: Go to
Step 2: Click on
Step 3: Look for the name of the staff and click on the
Step 4: In each of the pay elements that can be seen on the employee's pay information, look if the CPF box is ticked:
Since the CPF box is ticked, once you process the payrun of this staff, it will show the Gross amount:
*Note: for employees joining mid-month, CPF contributions will be prorated. If a Permanent Resident (PR)'s start date falls mid-month, CPF will be prorated according to the first-year CPF rate for their age group.
If you process the pay run for your foreign staff and the CPF is unticked for all their pay elements, the Gross amount will show as 0. Please note that foreign staff will not have CPF deductions, even if the CPF payable box is checked for their pay elements.
**Note: For those outside Singapore, there are different definitions of Gross and Net Pay:
In Malaysia:
- Gross Pay: Defined as the sum of all addition and reimbursement pay elements. Other regions may have a slightly different definition for Gross Pay.
- Net Pay: Similar to Singapore, Net Pay is the amount that will be credited to the employee's bank account.
In Hong Kong:
- Gross Pay: Defined as the sum of all addition and reimbursement pay elements. Other regions may have a slightly different definition for Gross Pay.
- Net Pay: Like in Singapore, Net Pay is the amount that will be credited to the employee's bank account.
- Relevant Pay: This term is specific to Hong Kong and is defined as the total of all MPF (Mandatory Provident Fund) payable additions minus all MPF payable deductions. This concept is analogous to how Gross Pay is tied to the CPF (Central Provident Fund) in Singapore.