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.

Central Provident Fund (CPF)

Depending on the nationality and the residence status of the employee, contributions need to be paid to the CPF itself, the FWL or to the Scheme for Permanent Residents.

In this infotype, you can specify the type of fund to which the CPF contributions are to be paid. You can also indicate whether the employee’s contributions on additional wages are to be adjusted on a monthly or yearly basis by comparing the current additional wages with those of the previous year. The system carries out this adjustment during the payroll run.

Additional Data for Foreign Workers

You can maintain additional classification data for the foreign workers in the organization.

Voluntary CPF

In the Central Provident Fund infotype (0186), you can maintain data on the employee’s voluntary contributions to the CPF, which exceed the legally required rates.

You can either use a percentage of the employee’s salary or a flat amount as the employee contribution to the CPF. If you specify a Fixed Rate or a Flat amount, the respective value will be directly used to calculate the contribution. If you specify a value that is in excess of the either the statutory rate or the 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.

In the infotype, there are separate sections for specifying the contributions of an employee and that of the employer. When you specify a value in both the employer and employee contribution sections, the system interprets the value in the employer section as the final amount or rate. The system interprets the value that you have specified in the employee section as the of the contribution that the employer can reclaim from the employee.

If you specify a value in only of the one sections, then the system will use the value that you have specified, for CPF calculations.