Understanding Effective-Dated Citizenship Status and Worker Type

Global Payroll for Singapore uses the Identification data SGP Pageto capture the citizenship status and worker type of workers in Singapore. The information is effective-dated so that changes to these fields can be tracked accordingly. It is important in cases where a worker has a backdated change of his citizenship status from foreign worker to permanent resident, and his CPF contributions has to be calculated from the date that status change occurred.

When a retro adjustment is generated as a result of a change in the Identification data SGP page, two override options are available for processing the adjustment. Variable CPF VR OVRIDE TYPE allows you to select the preferred override method:

  • (default) 1 - The OW in the previous segment is forwarded as OW to the current segment and all the calculation is done.

  • 2 - The OW in the previous segment is forwarded as AW to the current segment and all the calculation is done.

    To use this option, override variable CPF VR OVRIDE TYPE to 2 at the pay entity, pay group or payee level.

Note: Global Payroll for Singapore does not handle adjustment calculations for refund scenarios. They need to be handled outside the system.

These enhancements are made to support retro payment processing as a result of citizenship status or worker type change:

  • Formula RTO FM OVRD SET returns variable element CPF VR OVRIDE TYPE (default value is 1).

  • Formula CPF FM FWL CALC – the system uses the first effective date on which the payee became a foreign worker as the FWL start date if the FWL ST DATE variable is not overridden.

  • Retro event CTZSHIP for record CTZSHIP_SGP is used to handle the change in effective date for the citizenship status if the date is backdated.

  • Retro Process SGP RETRO includes override set 2 to support the option to forward ordinary wages in previous segments as additional wages when there is retro.

  • Earning element CPF RTO TOAW calculates the wage difference between previous and current months, and forwards it as additional wage for the current month. The element is included in accumulators CPF ADD WAGES SEG and SGP GROSS.

  • Array element CPF AR FWL ST DATE uses the first effective date of foreign worker as the FWL start date.

    Array element CPF AR PERS DATA is updated.

  • Section EARNINGS – OTHER and element group OTHER EARNINGS are updated to include earning element CPF RTO TOAW.