Is CPF payable on bonus given to my employees by a third party e.g. my service partners?
CPF contributions are payable on the bonus given to your employees by a third party e.g. your service partners, if the bonus is a reward for work done in respect of the employees’ employment.
Here is an example:
Company A is a marketing company partnering various banks to help increase its sales for personal loans and credit cards. Upon achieving specific monthly targets, the banks will give bonuses to the employees of Company A as an encouragement. Company A receives these bonuses from the banks and passes them on to its employees.
Company A is required to contribute CPF on the bonuses given to the employees by the banks who are the third parties.