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Making Voluntary Contributions

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Are CPF contributions payable on ex-gratia payment?

Ex-gratia payment is a cash payment given in gratitude without any contractual or legal obligation. CPF contributions are payable on the ex-gratia cash payment that is given as a token of appreciation for your employee's past services/contributions to you.

CPF contributions are not payable on the ex-gratia payment that is given as a compensation for your employee’s loss of employment.