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Making Voluntary Contributions

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Are CPF contributions payable on Long Service Award (LSA)?

CPF contributions are payable on cash award given to your employee in recognition of his long service.

However, to promote loyalty, CPF contributions are not payable on Long Service Award (LSA) that is given to your employee with at least 5 years of service and subsequent LSA for each 5-year period of service with you, up to the amount of your employee’s Ordinary Wages (OW) for the month in which the LSA is paid.  In the event that there are multiple types of LSA given to the same employee, only the first LSA granted to the employee in each 5-year period can qualify for this exemption.

If the LSA exceeds the OW for the month, CPF contributions are payable on the amount in excess of OW. If your employee has no OW payable in that month, CPF contributions are payable on the entire LSA.


Are CPF contributions payable?

LSA amount is OW and below


LSA amount  is more than OW

Yes, on the amount of LSA exceeding OW

OW is $0

Yes, on the entire LSA

The CPF treatment is the same even if the LSA is payable after your Singapore Citizen/Singapore Permanent Resident employee has left employment. Find out more if CPF contributions are payable on Additional Wages payable to ex-employees after they have left employment.

Please see examples (page 5 under the header “Long Service Award) of whether a LSA attracts CPF.