Are CPF contributions payable on cash awards?
CPF contributions are payable on any cash awards given to your employee that are given in respect of employee’s employment.
Some examples are:
- Best Employee Award
- Commendation Award
- Good Customer Service Award
- Good Quality Service Award
- Innovation Award
- Outstanding Performance Award
- Productivity Award
If the award given is not related to the employee’s employment, CPF contributions are not payable. For example, a patent award is given to the winner of a design competition and the competition is not related to employee’s employment.