From 1 January 2024, whether CPF contributions are payable would depend on the citizenship of an ex-employee as at the last date of employment and Additional Wages (AW) payable date.

This treatment removes the obligation for employers to make CPF contributions on AW payable to a non-Singapore Citizen/Singapore Permanent Resident (SC/SPR) ex-employee who subsequently became a SC/SPR after leaving their employment. 

A. For AW that is payable on or after 1 January 2024

• CPF contribution is payable for the AW if the employee is a SC/SPR on both the last date of employment and the date AW is payable.
• CPF contribution is not payable for the AW if the employee is not a SC/SPR on the last date of employment and/or the date AW is payable.

Example

An employee’s last date of employment with Company X was 30 June 2023. An AW was payable to him by Company X on 1 January 2024.

- If the employee is a SC/SPR on both 30 June 2023 and 1 January 2024, CPF contribution is payable on the AW. The contribution month and year for this AW is January 2024.

- If the employee is not a SC/SPR on either 30 June 2023 or 1 January 2024 or on both dates, CPF contribution is not payable on AW.

B. For AW that is payable before 1 January 2024

• CPF contribution is payable for the AW if the employee is a SC/SPR on the date AW is payable.
• CPF contribution is not payable for the AW if the employee is not a SC/SPR as at AW payable date.

Note: Last date of employment is not relevant for AW that is payable before 1 January 2024.

Example

An employee’s last date of employment with Company X was 30 June 2023. An AW was payable to him by Company X on 28 December 2023.

- If the employee is a SC/SPR on 28 December 2023, CPF contribution is payable on the AW. The contribution month and year for this AW is December 2023.

- If the employee is not a SC/SPR on 28 December 2023, CPF contribution is not payable on the AW.