Calculating Daily Non-Pensionable Variable Payment

You use NPVP DAILY (Non-pensionable Variable Payment) as part of the payee's pay component in the public sector for daily paid employees. It is an incentive payment to all employees to increase their productivity or as a reward for their contribution. The amount of variable payment can be based on trading results or productivity or any criteria agreed upon by the employers or employees or unions. It is not counted for the purpose of pension computations and can be adjusted in times of poor economic performance. This earning element uses a Unit × Rate calculation. The units are the units entered for accumulator SALARY DAILY_CPTDU and the rate is derived from formula ERN FM NPVP DAILY which calculates the npvp daily amount.

The formula resolves by dividing the KSNPVP non-pensionable variable payment rate by the CMN CT WORK DAYS work day count. There is no proration.

The generation control CMN GC ACTIVE checks for active employees only.

NPVP DAILY contributes to the following accumulators:

• SGP GROSS.

• CPF NP WAGES SEG.

• NPVP DAILY_CMTDA.

• NPVP DAILY_CYTDA.

• ESPP BASE AMOUNT.