In general, CPF contributions are required on all employee benefits as the cash payments payable to your employees increase their wages. Some examples are reimbursements of childcare expenses, eldercare expenses, gym subscription fee, holiday expenses, personal insurance premium and personal mobile phone subscription fee.
However, CPF contributions are not payable on the following as they do not fall under the definition of “wages” in the CPF Act:
a) Reimbursements of medical and dental benefits
CPF contributions are not payable on reimbursements of medical and dental treatment expenses incurred by employee, their spouse and children if it is considered necessary by registered doctors, TCM practitioners, and/or dentist for the treatment or diagnosis of any illness (excludes solely aesthetic defect). This approach supports employment practices to provide medical and dental benefits for employees and their dependants beyond an employer’s statutory obligations, while ensuring that members have adequate CPF contributions for retirement. Some examples are reimbursements of medical consultation fee and medication prescribed by medical practitioner for treating illness, and scaling and polishing by dentist.
If the treatments, procedures or items are ordered by medical practitioners as part of medical or dental treatment, CPF contributions are also not payable even if they are performed by non-registered medical practitioners. Some examples are physiotherapy, chiropractic therapy, health screening, vaccination, health supplement and medical device. Otherwise, CPF contributions are payable if your employees go on their own accord.
If you are in doubt whether a certain treatment, procedure or item is medically required for your employee, you should check with a registered medical practitioner and apply the CPF treatment accordingly.
b) Reimbursements incurred for official purposes
CPF contributions are not payable on reimbursements incurred for official purposes. The reimbursed amount must not exceed the expenditure incurred. Similarly, any of the claims made under the employee/flexible benefit schemes that are for official purposes will also not attract CPF contributions. Some examples are reimbursements of course and exam fee, mobile phone subscription fee and professional membership fee that are required for work.