Calculating Voluntary CPF Contributions

Voluntary CPF deductions are set up the same way as the normal CPF deductions. They use the same pre-process formula, CPF FM CALCULATION. However, as eligibility will be by individual assignments, they have no generation control.

There are two voluntary CPF deductions:

• CPF VOL ER — Employer Voluntary CPF.

• CPF VOL EE — Employee Voluntary CPF.

Voluntary CPF can be used in two situations:

• Paying normal CPF for foreign workers or others not normally liable for CPF. In this case, the amount calculated in the pre-process formula is used.

• Paying extra CPF for employees already contributing the normal CPF. In this case, the amount is overridden on the deduction assignment rather than using the standard CPF amounts.

Note:

If the Voluntary CPF is for an overseas posting, set the IRS VR OVERSEAS variable on the SOVR's page of the Deduction Assignment to 'Y' (or any non-blank value) to indicate an overseas posting. This is used on Inland Revenue reports.