Conditional wages are wages paid to employees with condition(s) attached. If your employee fails to fulfil the condition(s), you can apply for a refund of CPF contribution when such wages are repayable to you.
Any errors in CPF contributions should be rectified early while the documentary evidence is fresh. To encourage employers and employees to check their CPF contributions and come forward to rectify errors as soon as possible, any request for refund of CPF contributions paid in error must be made immediately and no later than one year from the date of payment of the CPF contributions. You can refer to the “PAYMENTS RECEIVED ON” field in your record of payment to determine the date of payment.
You should complete a refund application for each employee.
The total refund amount (employer and employee’s share) will be refunded to you. You’re responsible to refund the employee’s share of CPF contributions (where applicable) directly to your employee.
Refund of CPF contributions paid on conditional wages
To encourage employers and employees to come forward as soon as possible, any request for refund of CPF contributions paid on conditional wages must be made immediately and no later than one year from the date wages are supposed to be repaid to the employer. This will be the date stated in the terms of employment or based on mutual agreement. You’re required to indicate this date in your refund application.
The total refund amount (employer and employee's share) will be refunded to you. You’re responsible to refund the employee’s share of CPF contributions (where applicable) directly to your employee.
Contributions paid in excess of AW ceiling and/or CPF Annual Limit
Refund of CPF contributions paid in excess of AW ceiling
Once you have discovered that you paid CPF contributions in excess of the AW ceiling for any of your employees, you should apply for a refund of the CPF contributions made promptly.
Refund of CPF contributions paid in excess of CPF Annual Limit
From February 2024, any CPF contributions paid in excess of the CPF Annual Limit will be refunded automatically to the employer's Direct Debit Account maintained with CPF Board. This applies to excess contributions paid from year 2023.
Things to note
What you should know before submitting a refund application
Keep your employees informed on the refund
You’ll need to notify the affected employee(s) so that they’ll be aware that you’re applying for a refund of the CPF contributions. If there is any dispute, you’re required to resolve them with your employee before applying for the refund.
Correct wages and CPF refund details have to be declared in the application
We’ll effect the refund based on the details declared in your application.
Refund is subject to availability of funds
We’ll effect the refund based on the available funds in the employee’s CPF account(s).