The nature of payment will determine if a cash (monetary) payment falls under the definition of wages. If the nature of the cash payments is a reward for services or work done by the employee, then these cash payments are considered as wages and consequently, CPF contributions are payable on these cash payments.
Similarly, CPF contributions are payable where the cash payments increase the employee's wages. For example, CPF contributions are payable for cash payments on items that are not incurred for official purposes, regardless of whether the cash payments were paid in advance or reimbursed to the employee (e.g. festive allowance paid in cash, reimbursement for gym membership fees and child care fees and elderly care fees, car purchase etc.).
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