Is CPF contribution payable on reimbursement of COVID-19 test?
If the employee is required by authorities and/or medical practitioners to take a COVID-19 test as part of medical diagnosis of any illness, CPF contribution is not required on the reimbursement of the fees incurred. The amount reimbursed must not exceed the actual expenditure.
CPF contribution is also not required if the employee has to take the COVID-19 test due to work-related overseas trips or work-related requirements as the cash payment is incurred on behalf of employer for official purpose. Likewise for this reimbursement, the amount reimbursed must not exceed the actual expenditure.
However, if the COVID-19 test is done due to personal reasons (e.g. personal overseas trip), CPF contribution is required for such reimbursement as it is classified as employee’s personal expenses and the cash payment given by employer increases employee’s wages.