Central Provident Fund (Infotype 0186)
In this infotype, you enter data that is relevant to the processing of an employee’s contributions to the Central Provident Fund. This data, together with the data you enter in the infotype Additional Funds (Infotype 0181) , is used by the payroll system.
Institution of Social Provident Fund
All additional funds are parts of a larger group of social security institutions. Depending on which of these institutions you select, you can determine to which Additional Funds an employee will make his contributions. Note that as of now, only one such institution exists, the Central Provident Fund.
Depending on the nationality and the residence status of the employee, he has to make his contributions to the CPF itself, the FWL or to the Scheme for Permanent Residents. You can enter the appropriate fund in the field Fund type.
Select Adjustments on AW if the employee’s contributions on additional wages are to be adjusted on a monthly or yearly basis by comparing his current additional wages with those of the previous year. This adjustment is then carried out during the payroll run.
Additional Data for Foreign Workers
In this section, you can enter additional classification data for foreign workers. Note that entries in all fields of this section are voluntary.
In this section, you can enter data on an employee’s voluntary contributions to the CPF exceeding the legally required rates.
If you select the field CPF voluntary, the data you enter in this section will always be used to calculate the employee’s contributions, even if the amounts or rates you entered are lower than the legally required ones!
You can either use a percentage of the employee’s salary or a flat amount as his contribution to the CPF. If you enter data in the fields Fixed rate or Flat amount, the respective value will be directly used to calculate the contribution. If you enter data in the fields In excess of statutory rate or In excess of statutory amount, the respective value will be added to the normal, legally required one, thus forming the final value to be used in the calculation of the contribution.
The distinction in Employee and Employer fields are used to split the contribution between them. If you enter values in both fields, the entry in the Employer row is interpreted as the final amount or rate to be used, while the value in the Employee row depicts the part of the contribution that the employer can reclaim from the employee. If you leave one field blank, the contribution is paid solely by whichever party you selected.