Are CPF contributions payable on reimbursement of relocation expenses incurred by an employee, e.g. air tickets, baggage charges, shipping cost, taxi fare from airport and packing charges etc, for the purpose of relocating from overseas to work in Singapore?
CPF contributions are not payable on genuine reimbursement of relocation expenses incurred by an employee who is a citizen or permanent resident of Singapore to relocate from overseas to work in Singapore if the following conditions are fulfilled:
a) the employee had been working for the employer in Singapore;
b) the employee was required by the employer to relocate overseas for official purposes; and
c) the employee was required to return to Singapore by the same employer to continue with employment in Singapore.
CPF contributions are payable on the reimbursement if the employee is originally based overseas but is relocating to Singapore to begin his Singapore employment as the reimbursement of relocation expenses in such a case is considered an employment benefit which increases the employee’s wages.